A bamboo house on a riverbank in the Bali jungle, the kind of finished build a buyer inspects before taking the keys

Ownership and tax · handover

Villa handover in Bali: the snagging list to walk before you sign the acceptance record

October 3, 20269 min readOwnership and tax

Handover is the last moment a defect costs you nothing to raise. Once you sign the acceptance record, the burden of proof shifts to you.

In short

A villa handover checklist covers seven areas: pool, electrics, water, air conditioning, roof and joinery, drainage and the furniture package. Walk them before you sign the acceptance record and log every fault in writing. Law 2/2017 keeps a contractor liable for structural failure up to 10 years after final handover, but small defects are easiest to claim at inspection.

contractor liability for building failure after final handover (Law 2/2017)
Up to 10 years
on the core inspection list, from pool to furniture package
7 areas
validity of an SLF for a single house (PP 16/2021)
20 years
expected peak of the 2026/27 rainy season, per BMKG's national outlook
Dec–Feb

What is a villa handover, and how is it different from due diligence?

Handover is the day you take possession of a finished villa and sign the acceptance record, the BAST in Indonesian. It answers one question: what condition is the building in? Due diligence answers a different one, whether you can legally buy it, and it comes before you pay (our due diligence checklist covers that side).

Both checks are needed, and neither replaces the other. A clean title says nothing about a leaking pool. Every villa is built by a specific crew on a specific plot, so each unit earns its own inspection, whoever the developer is.

Source: Rise Real Bali handover practice

Who is liable for defects, and for how long?

Two clocks run after handover. The first is statutory. Under the Construction Services Law (2/2017), Articles 63 and 65, a contractor must repair or replace a building failure it caused and stays liable for up to 10 years from final handover. The law defines failure as collapse or loss of function. It doesn't reach a faded wall or a sticking door, and the liability period has to be written into the construction contract.

The second clock sits in your sale contract. Government Regulation 12/2021, Article 22J, says a presale agreement for housing must cover handover timing, building maintenance and a developer's guarantee. One legal-practice site reads that as a minimum three-month maintenance period. We couldn't confirm the number against the official text, so treat the length in your own PPJB as the answer.

Disputes over cause go to an expert assessor, who decides what failed and who answers for it. That's why a dated, photographed snag list matters more than any promise made on site.

The two clocks after handover
ClockLegal basisWhat it coversHow long
Structural failureLaw 2/2017, Articles 63 and 65Collapse or loss of function after final handoverUp to 10 years, stated in the contract
Maintenance and defectsPresale agreement, PP 12/2021 Article 22JFit-out and finish faults logged at handoverSet by your contract

Source: Law 2/2017 on Construction Services, Articles 63 and 65; Binus Business Law, March 26, 2017; PP 12/2021, Article 22J, via Hukumonline and Hukum Properti

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What should you inspect first?

Systems first, paint second. Engineering faults cost the most after handover and show up months later, usually in the rainy season. A cracked tile is cosmetic. A pool that loses water or a circuit that trips under load isn't.

Work through the villa with the contract's specification in your hand, room by room, and photograph each fault with a number. The table lists the seven areas we check on every handover.

Then stress the systems together. Switch on every air conditioner, the water heater, the pool pump and the kitchen at once, because a villa that passes one test at a time can still trip its main breaker on a hot evening. Compare what was built with the specification too: floor area, bathroom count, pool size, kitchen fittings. Measure a few rooms yourself.

Seven-area inspection list
AreaWhat to testTypical fault to log
Pool and filtrationRun pump and heater through a full cycle; check waterline tile, skimmers, lights and the equipment room floorWet patch at the plant room, noisy pump, cloudy water
ElectricsTest every breaker and socket; check labels and earth leakage trip; confirm the meter is in the right nameMislabeled circuits, dead sockets
WaterOpen the highest tap and shower together; test hot water; confirm the source, mains or well, matches the sales briefWeak pressure upstairs, brown water
Air conditioningRun every unit; check drain lines, remotes and the model against the specificationWrong model, dripping indoor units
Roof, doors, windowsHose-test terraces and roof junctions; open and close every door and windowStains after rain, jammed joinery
DrainageHose the plot and watch where water goes; check gutters and outletsWater standing against the walls
Furniture packageCount every item against the contract schedule: model, size, finishMissing piece, substitute model

Source: Rise Real Bali handover practice; glossary entry on the furniture package (FF&E)

Who should come with you to the inspection?

Bring someone who isn't selling you the villa. An independent inspector tests the same list every time and doesn't skip the dull parts, which is how faults get caught. If you're abroad, a local representative with a signed brief works too. Send either one the contract specification and floor plans beforehand, so they check against what you bought, not against their own taste.

Your counterpart's job is to close the file. Yours is to open every door. Number each defect, photograph it, write the fix deadline beside it and have both sides initial the page. Then sign the final record only when the list is closed, or when every open item carries a date.

Source: Rise Real Bali handover practice

Which documents should you collect on the same visit?

Leave with the paper as well as the keys. Start with the certificate of occupancy (SLF), which the rental license depends on. Under PP 16/2021 it lasts 20 years for a single house and 5 years for other buildings. Then collect the building approval (PBG), as-built drawings, warranty cards for the pool equipment and appliances, every key and remote, and the signed furniture inventory. Photograph the electricity and water meters on the day, and move both accounts into your name, so you don't pay for the builder's usage.

If the SLF hasn't arrived, hold the last installment until it does. Our guide to PBG and SLF explains what each paper proves, and the off-plan guide shows how to write the SLF into the payment schedule.

Source: PP 16/2021 on building implementation; Rise Real Bali handover practice

When should you schedule the handover?

Before the rains if you can. BMKG expects most of Indonesia to enter the 2026/27 rainy season from November, with the peak between December and February. Its outlook is national, so check the local forecast.

A handover in October or November lets you hose-test roofs and terraces. If it lands later, don't wait for storms to prove the point. Put a dated re-check after the first heavy rain on the snag list, and keep the last payment tied to it.

Source: BMKG national rainy-season outlook, reported by CNBC Indonesia, September 25, 2026

What happens to the snag list after you sign?

Ask for a conditional record: accepted subject to the attached snag list. It lets you take possession without waiving a single item. The developer fixes the list inside the agreed window, and you confirm each repair in writing against its number.

Hidden defects that appear later go through the guarantee in your PPJB, and structural ones through the 10-year rule above. Read that clause before handover, not after the first leak. If a fault keeps coming back, a second independent opinion costs less than an argument without one.

Keep one folder with the specification, the signed list, every photo and each written confirmation. When the dry season hides a roof leak, that folder is your evidence.

Source: PP 12/2021, Article 22J; Law 2/2017, Article 65

Completed villa or off-plan: when do you inspect?

With a completed villa you inspect before you pay. The building stands, so you can run the full list, read its SLF and settle faults in the price. Completed projects such as Umalas Oasis and Nila Residence show what that looks like.

An off-plan buyer inspects months later, on the handover date, when the schedule has run out of slack. That's when the list matters most, so plan it into the contract from the start. Browse both kinds in our property listings.

Source: Rise Real Bali catalog

What this means for buyers

  1. Handover tests the build; due diligence tests the title. You need both, and the first happens after you've paid most of the price.
  2. Contractors answer for structural failure up to 10 years. Small faults are easy to claim only with a dated, photographed snag list.
  3. Check pool, electrics, water, air conditioning, roof and joinery, drainage and the furniture package, in that order, with an independent inspector.
  4. Sign a conditional acceptance record, collect the SLF and PBG on the same visit, and hold the last payment until the SLF arrives.

FAQ

What is a snagging list in a Bali villa handover?

A snagging list is the numbered record of every defect found at inspection, each with a photo, a fix deadline and a place for both sides to initial. You attach it to the acceptance record, so accepting the keys doesn't waive the faults. It's the document an assessor would ask for in a dispute.

How long is a developer responsible for defects after handover in Bali?

It depends on the fault. A contractor answers for structural failure, meaning collapse or loss of function, up to 10 years from final handover under Law 2/2017. Cosmetic and fit-out faults follow the maintenance period in your presale agreement. Read that clause before you sign, because the length is set by contract.

Should I hire an independent inspector for a villa handover?

Yes if you can. An inspector works through the same seven areas on every job and photographs each fault, which saves you from missing the dull but expensive ones like drainage and pool plant. If you can't attend, appoint a representative in writing and give them the contract specification.

What should I check in a villa before taking the keys?

Start with the pool and filtration, electrics, water pressure and hot water, air conditioning, roof, doors and windows, drainage and the furniture package against the contract schedule. Then collect the SLF, PBG, as-built drawings, warranty cards and every key and remote before you sign anything.

Can I refuse a villa handover if there are defects?

Your contract decides. Many presale agreements set a handover date and a procedure for logging defects, and a villa with open faults hasn't reached practical completion. Rather than refuse outright, sign a conditional record listing every open item with a date, and keep the final payment tied to the SLF.

How we know this

The liability period comes from the Construction Services Law (2/2017), Articles 63 and 65, read through Indonesian legal commentary. The presale agreement requirements come from Government Regulation 12/2021, Article 22J, as summarized by Hukumonline and Hukum Properti. Only one of those summaries gives a three-month maintenance figure, and we couldn't verify it in the official text, so we don't treat it as law. The SLF validity period comes from PP 16/2021. The inspection list and conditional-acceptance advice are Rise Real Bali's own handover practice, not statutory requirements. BMKG's rainy-season outlook is national, not specific to Bali. We found no Bali-specific statistics on how long developers take to fix snag items. This isn't legal advice.

  • Law 2/2017 on Construction Services, Articles 63 and 65, building failure liability
  • Government Regulation 12/2021, Article 22J, mandatory contents of a presale agreement, via Hukumonline
  • Government Regulation 16/2021 on building implementation, SLF validity and building intensity
  • Binus Business Law, building failure under the 2017 Construction Services Law, March 26, 2017
  • BMKG rainy-season outlook for 2026/27, via CNBC Indonesia, September 25, 2026

By Dmitrii Rogov, Rise Real Bali.

Rise Real Bali is a real estate agency in Bali. We write from the deals we handle and from public data, and we name our sources.

This report is published under the CC BY 4.0 license. You may quote, republish and use the figures and text commercially if you credit "Rise Real Bali", name the license and link to this page. Photos and renderings are not covered by the license: their rights belong to the developers and other rights holders.

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