Bali · Thailand · Vietnam
How to check the property and the developer before the deposit
Seven things I check on every property. Take them and check for yourself – with me or without me. Someone who gives the method away isn't afraid of losing it.
SALE AND PURCHASE AGREEMENT
3.2. Payment is made in instalments; each instalment is tied to a construction stage and paid after that stage is documented.
5.1. The handover date may be extended by no more than a 3‑month grace period, with no penalties applied to the buyer.
5.4. Beyond that, the developer pays a penalty calculated on the full contract amount for every day of delay.
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01
Is there a building permit (PBG)
If it's under construction, this is the first thing we look at: is there a building permit. No – that's a red flag, and there's no point going further.
The PBG is issued by the local administration and states the building's technical parameters: floors, area, intended use. If what's actually being built differs from the PBG, there will be nothing to legalise it with later.
02
What the land agreement says and on what terms it renews
If it says the renewal will be at the market value of the land and of whatever stands on it – that's a very bad deal.
It means the developer has a very weak agreement with the landowner, and he will most likely be pushed out once the first lease term ends. And you will be pushed out along with him.
03
Are the payments tied to construction stages
Payment for an off-plan unit is tied to construction stages. To the stages only – not to a calendar payment schedule.
The difference is simple: on a calendar you pay for time, on stages you pay for what's been built. If construction stalls, in the second case you lawfully stop paying.
04
Is there an SLF clause in the contract
The SLF is the "laik fungsi" certificate – proof the building is fit for use. Without it the property cannot be legally rented out.
A mandatory clause: if the developer fails to obtain the SLF within the agreed period, you have the right to take all your money back plus 10% per annum in compensation. It's one of the first clauses I read.
05
Who has put in more – you or the developer
Ideally the developer has already spent more money than you are putting in. That one matters on principle.
As long as the project holds more of your money than his, you carry the risk and he makes the decisions.
06
Whose money the construction runs on, and how many projects at once
I look at whose money the construction runs on and how many projects the developer is carrying at the same time.
It happens that they open a dozen and a half projects at once with nothing delivered: the money from the first builds goes into the next ones. You can see it coming – the assets have to cover the obligations already taken on.
07
Does the developer have too many projects running
It happens: the developer is fine, the documents are fine, but he has too many projects in progress. I don't recommend those either.
There are more than three hundred developers on the island and my database is in an app – there is plenty to choose from. Risking it over one unit makes no sense.
What to do with this list
Go through it yourself. Seven points is one evening and a few questions to the agent who is selling to you.
If at some point they won't give you a document, or start explaining why this time it's fine without one – you've already learned the main thing.
From there you have two options. Work it out yourself from the three free videos – these points are covered there on real contracts. Or send the property to me.
This opens the bot – six questions, two minutes, mostly buttons. Then I look at your property with my team and message you personally to agree on a time. Usually the same day.