Written by Stanislav Sadovnikov, Founder, Magnum Estate · Reviewed by the Magnum Estate legal & investment desk · Last updated 23 August 2026
In short: Buying off-plan in Bali runs through eight stages, from a holding deposit to keys in hand. At each stage you sign a specific document and release a specific payment, and at each stage there is a mechanism built to protect your money, from legal due diligence to milestone-based escrow. This guide walks the full sequence so you know what happens before you commit a deposit. It is the step-level companion to our Bali real estate investment advisory; the exact payment schedule and timeline are set per project, so confirm the specifics with the Magnum advisory desk.
Off-plan means you buy a unit that is still under construction, sometimes before the ground is broken. You commit early, pay in stages as the building goes up, and take ownership at completion. The trade is a lower entry price and early choice of units against a longer wait and reliance on the developer delivering. The process below is how that commitment is structured so your money tracks real progress rather than a promise.
The eight stages at a glance
Each row is a stage: what you do, what you sign or pay, and what protects you. The detail follows below.
The eight stages at a glance
| # | Stage | What happens | What you sign or pay | How you're protected |
|---|---|---|---|---|
| 1 | Shortlist and reservation | You choose a unit and take it off the market | Reservation agreement; holding deposit | Price and unit are held while you run checks |
| 2 | Legal due diligence | Your notary checks title, permits and the developer | Legal fees; you review, you do not sign the sale yet | You confirm the land and developer before paying more |
| 3 | Purchase contract | You sign the binding sale before a notary | Conditional sale deed (PPJB); first tranche | Notarised terms fix spec, price and timeline |
| 4 | Ownership structure | You set how you legally hold the unit | Reflected in the deed; PT PMA setup if used | Structure matches your horizon and stays compliant |
| 5 | Staged payments | You pay instalments as milestones are met | Milestone payments per your schedule | Escrow or controlled release ties money to progress |
| 6 | Construction | The developer builds and reports progress | Ongoing instalments as milestones certify | Reporting and site visits track spec and pace |
| 7 | Completion and handover | You inspect, list defects and take the keys | Final tranche; acceptance and final deed | Sign-off and warranty cover only work that meets spec |
| 8 | Furnish and let | You fit out and place the unit into management | Furniture package; management agreement | An operator runs bookings, payouts and reporting |
Locking in the unit: reservation and due diligence
Reservation is stage one. Once you have chosen a specific unit, you sign a reservation agreement and place a holding deposit. That takes the unit off the market at an agreed price for a set window while you do your checks. The agreement should state whether the deposit is refundable and whether it counts toward the purchase price if you proceed. Nothing about the sale is final yet. You are buying time to verify before you are bound.
Due diligence is stage two, and it is the stage that protects everything after it. Your notary or lawyer checks the land certificate and who holds it, the zoning, and the developer’s building approval, which in Indonesia is the PBG, with the SLF certificate of function issued once a building is fit for use. They also check the developer as a company: its licences, ownership and any litigation on record. You read these findings before you sign the sale, not after.
Signing the contract and setting your ownership structure
Stage three is the contract. With due diligence clear, you sign the sale before a notary. For off-plan, this is normally a conditional sale and purchase deed, known in Indonesia as a PPJB, because the unit does not physically exist yet. The PPJB binds both sides and records the specification, the price, the payment schedule and the completion obligations. The final transfer or lease deed follows later, at handover. The first payment tranche is often due at this point.
Stage four runs alongside the contract: which structure you use to legally hold the unit. This is where you settle whether to buy on a leasehold or through your own foreign-owned PT PMA company, because that choice shapes which deed you sign and your cost and tax profile. Our guide to how foreigners legally own Bali property compares both routes. Settle this before signing, so the contract reflects the structure you actually want.
Paying as it is built: milestones, escrow and progress
Stage five is how you pay. Off-plan is not paid in one lump. You pay in instalments released as construction reaches defined milestones, such as foundation, structure, roof and finishing. Payments often move through a controlled or escrow-style account, so funds are released against verified progress rather than on request. This is the core protection of off-plan: your money tracks real building work, which limits your exposure if a project slows or stalls. The exact payment schedule and timeline are set per project, so confirm the specifics with the Magnum advisory desk.
Stage six is the construction period itself. The developer builds, and you receive progress reports and can arrange site visits or independent inspections. Your milestone payments line up with these certified stages, so reporting is not just an update. It is the trigger for the next release of funds, and your window to confirm the build matches the specification in your contract.
Completion, handover and turning the unit into income
Stage seven is completion and handover. When the unit is finished, you inspect it against the agreed specification and record any defects on a snagging list for the developer to fix. The final documents are completed, including the transfer or lease deed and, for the building, the SLF, and you make the final payment before keys change hands. Acceptance sign-off means you are accepting only work that meets spec, and defects-liability or warranty terms should cover fixes after handover.
Stage eight turns the asset into income. After handover you furnish or fit out the unit and, if it is an investment, place it into rental management so it starts earning. A clear Bali property management agreement sets the operator’s fees, the booking process, and how payouts and reporting reach you. For a rental, this stage is where the returns you modelled at the start finally show up in your account.
Doing this with a developer, not a broker
Because Magnum Estate is a full-cycle developer, one company runs every stage above. PT Magnum Estate International has delivered 8 projects and 575 units since 2019, hands over developer-direct, and then manages the residences in-house at around 65% average annual occupancy. The team you sign the contract with is the team that builds the unit and later operates the rental, which removes the handoffs between separate firms at the points where off-plan deals usually go wrong. You can see how these stages map onto specific units across our current Bali projects.
Get the specifics for your unit
Tell us which project and unit you are weighing, and we will walk you through the exact reservation terms, contract, payment schedule and handover timeline that apply to it.
