How to Legally Sell a House When the Owner Has Passed Away in Bali

Many properties in Bali remain under the name of deceased owners. Learn why this blocks sales, transfers, and how to fix it legally under BPN and Indonesian inheritance law.

In Bali’s ever-booming property scene, there’s a legal issue quietly stopping countless deals – houses and land still registered under the names of people who have passed away.

You’ll often hear stories like this:

“We’ve lived here for 20 years. The land belonged to our late father, but everyone knows it’s ours.”

Then, when they finally try to sell, develop, or refinance the property – they hit a wall.
The notary (PPAT) can’t process it. The buyer’s due diligence fails. The Badan Pertanahan Nasional (BPN) refuses to transfer the name.

Why? Because in the eyes of Indonesian law, that property still belongs to the deceased.
And until the heirs go through the proper legal process, the land or villa is effectively “frozen.”

Let’s dive into how this happens, the risks it creates, and how to legally fix it — step by step.

Why the Owner’s Name on the Certificate Matters

The name written on your Sertipikat Tanah (land certificate) isn’t just symbolic –  it’s the only thing that determines legal ownership under Indonesian law.

Even if every family member agrees that “the land is already yours,” if it’s still under the deceased’s name, then technically, no one alive currently owns it.

Under Law No. 5/1960 on Basic Agrarian Principles (UUPA) and related BPN regulations, only living persons or legal entities (like PT, CV, Yayasan, etc.) can own or transfer land rights.

That means:

• A deceased owner can’t sign a sale deed.
• A notary can’t witness or process the transaction.
• BPN can’t record the name transfer.

So even if a buyer is ready and the money is on the table – the sale legally can’t happen.

“We’re the Heirs, So It’s Automatically Ours”

This is where most families go wrong.

Culturally, many Indonesians – and even some foreigners living in Bali –  assume that inheritance happens automatically. Once a person dies, the family “inherits” everything.

But legally, inheritance in Indonesia must be declared and proven.

The process involves a Surat Keterangan Waris (Heir Certificate) – a notarized or court-issued document that officially identifies all legal heirs.

Without this, you can’t do any legal transaction involving the property.

Think of it like a car without a new owner on the registration. You may drive it, but you can’t sell it – because legally, it still belongs to the deceased.

The Real Consequences of Unupdated Titles

If your property in Bali is still under the name of a deceased person, here’s what that actually means in practice:

1. You Can’t Sell or Lease It Legally

The PPAT (official land notary) can’t issue a sale deed (AJB) or even a preliminary sale agreement (PPJB) if the certificate name doesn’t match a living owner.

2. You Can’t Use It as Collateral

Banks and financial institutions require a clean, valid certificate to grant loans or mortgages.
If the owner listed has passed away – it’s an instant rejection.

3. You Can’t Transfer It to a Company

Many investors in Bali eventually move their assets into a PT PMA or local entity.
But this is impossible if the land is still registered under someone deceased.

4. You Risk Family Disputes

This is the most painful part. When inheritance isn’t documented properly, it invites conflict.
Siblings might disagree on who owns what.
Someone could attempt to sell it secretly.
Fake heirs may appear years later, causing long legal battles.

5. You Lose Potential Buyers and Value

Serious buyers and foreign investors conduct legal due diligence.
If your land’s ownership isn’t updated, the deal will collapse immediately.
Even if the property is valuable, buyers won’t risk unclear ownership.

Step-by-Step: The Legal Way to Fix It

Here’s the full legal process to “clean” your property ownership and make it legally transferable again.

Step 1. Obtain a Death Certificate

Get the official death certificate from the Civil Registry (Dinas Kependudukan dan Catatan Sipil).
This proves the original owner has passed away and allows you to start inheritance procedures.

Step 2. Prepare a Surat Keterangan Waris (Heir Certificate)

This document formally lists all legal heirs of the deceased.
There are two ways to make it, depending on religion and ethnicity:

• For Muslims: issued by the Religious Court (Pengadilan Agama).
• For Non-Muslims: issued by a Notary (Notaris/PPAT) after confirming family lineage and witnesses.

This document is crucial –  it’s what gives heirs legal recognition as the new property owners.

Step 3. Apply for Balik Nama Waris (Heir Name Transfer) at BPN

Once the Heir Certificate is issued, you’ll submit it to the Badan Pertanahan Nasional (BPN) to officially change the name on the land certificate.
Required documents include:

• Original certificate
• Death certificate
• Heir certificate
• ID cards (KTP, KK) of heirs
• NPWP (tax number)
• Proof of BPHTB (inheritance tax) payment

Step 4. Pay BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan)

This is the land and building rights acquisition tax.
For inheritance, the rate is usually 5% of the property value exceeding the non-taxable threshold.
Once paid, you’ll receive the BPHTB receipt to submit to BPN.

Step 5. Receive the Updated Certificate

After processing (typically 1–3 months), BPN will issue a new certificate listing the heirs as owners.
Once this is done, the property becomes fully transferable, saleable, or leasable.

How Long Does It Take?

Depending on document completeness and family cooperation, the inheritance update process usually takes:

• Simple cases: 2–3 months.
• Complex or multi-heir cases: 4–6 months.
• With foreign heirs or overseas power of attorney: sometimes 8–12 months.

A reliable notary (PPAT) familiar with Bali property cases can significantly speed this up.

Case Study: When a Sale Collapsed in Canggu

Here’s a real-world style example that happens more often than people realize.

A family in Canggu owned a 10-are plot inherited from their late father. They decided to sell it for IDR 8 billion to a foreign buyer via a local nominee.

Everything looked fine — the land was clean, the buyer had funds, and both parties agreed on terms.
But when the notary ran the ownership check, the certificate was still under the father’s name, who had passed away eight years earlier.

No Heir Certificate. No Balik Nama.

The notary refused to proceed until the heirs fixed the paperwork.
Two siblings lived overseas, and one refused to send the required authorization letter.
The sale stalled for months — and eventually fell apart.

Result:

• The buyer walked away.
• The land’s market momentum was lost.
• The family later had to restart the entire inheritance process just to be legally recognized.

A simple legal step, delayed for years, cost them billions of rupiah.

For Buyers: How to Protect Yourself

If you’re buying property in Bali, especially from a family claiming it’s inherited land, do not skip due diligence.

Here’s what to check before paying any deposit:

1. Check the name on the certificate — must be a living owner or updated heirs.
2. Ask for the Surat Keterangan Waris — verify all heirs have signed it.
3. Confirm with the notary (PPAT) — they’ll check BPN records for any restrictions or disputes.
4. Use escrow for deposits — never hand money directly until legal ownership is confirmed.
5. Ask for Power of Attorney if heirs are abroad — all heirs must consent to the sale.

If any of these steps are skipped, the sale could be invalid — and you risk losing your investment.

Important Legal Documents You’ll Encounter

Common Questions (FAQ)

1. Can we sell the property before doing the inheritance transfer?

No. Any sale before official inheritance registration at BPN is invalid under Indonesian law.

2. What if one heir disagrees or refuses to sign?

The process stops. You must either reach a family agreement or settle it legally through the courts.

3. What if some heirs live abroad?

They can provide a notarized Power of Attorney (Surat Kuasa) legalized by the Indonesian embassy or consulate.

4. Can foreign heirs inherit land in Indonesia?

Yes, but with restrictions.
Foreigners can’t own Hak Milik (freehold), but can inherit Hak Pakai or Hak Guna Bangunan (HGB) depending on circumstances.
Most foreign heirs transfer ownership to an Indonesian entity or sell the rights.

5. How long do we have to process the inheritance?

There’s no strict legal deadline, but the sooner the better – delays create more complications, especially if heirs move abroad or pass away.

Preventing Problems: Smart Family Planning

Inheritance problems are easier to prevent than to fix.
Here’s how to avoid them:

• Create a legal will (Surat Wasiat) that clearly names heirs.
• Keep land documents updated with current addresses and ID numbers.
• Use a family notary to handle succession planning early.
• Immediately process name transfer after death — don’t wait years.
• Discuss openly within the family about ownership rights before any dispute begins.

These small actions save years of potential legal and emotional stress later.

Why This Matters More in Bali

Bali’s land ownership landscape is unique.
Family lands are often split, sold, or developed over generations — sometimes without formal paperwork.

Meanwhile, the influx of investors and villa developers means that clear land titles are more valuable than ever.

Many buyers, especially foreigners working through local nominees or PT PMA structures, demand clean and transparent titles.
If your land still bears a deceased name, it’s not just a legal problem — it’s a business disadvantage.

A clear title isn’t just about law. It’s about trust, liquidity, and opportunity.

Clear the Name, Secure the Future

If your property in Bali is still under the name of someone who has passed away — it’s time to act.

It might feel like a formality, but it’s far more than that.
Without updating ownership, your property can’t be legally sold, transferred, or developed.

Fixing this means:

• Avoiding future disputes
• Unlocking your property’s full value
• Attracting serious buyers or investors
• Securing your family’s legal legacy

In a fast-moving Bali property market, a clean certificate is the foundation of every successful deal.
So before you plan your sale or development, make sure your paperwork is as ready as your dreams.