Most of the questions cautious buyers ask before committing to an off-plan villa are about the same thing: what happens if something goes wrong? This page answers that honestly. The short version: your deposit is held in a controlled account, your purchase is structured in stages tied to construction milestones, and every step is documented.
How your funds move
30% on signing, 30% on foundations, 30% on lock-up, 10% on practical completion. You pay for work as it is delivered, not all at once upfront — and every milestone requires independent confirmation before the next instalment is requested.
Refundable
Reservation deposit
30%
On signing the purchase agreement
30%
On foundations complete
30%
On structural lock-up
10%
On practical completion & handover
Reservation
Refundable
A small refundable reservation deposit secures your chosen villa lot and type for an agreed period (typically 14 to 30 days) while you complete legal review and due diligence. If you decide not to proceed before the purchase agreement is signed, the reservation deposit is refunded in full, net of any third-party fees actually incurred (for example, notarial costs if you asked us to begin drafting).
Instalment 1
30%
Once your lawyer has reviewed the documentation and you have signed the Purchase Agreement, you pay 30% of the purchase price. This moves into a controlled project account — not into the general operating account of the developer. The account is operated with dual signatory control, so funds cannot be drawn down for any purpose other than the project.
Instalment 2
30%
The second 30% is released when the villa foundations are independently verified as complete. You receive written confirmation with photographic evidence and a certification from the site engineer before the instalment is requested.
Instalment 3
30%
The third 30% is released at structural lock-up: the villa is weathertight, with walls, roof, doors and windows in place. Again, released only against independent verification that the lock-up milestone has been reached.
Instalment 4
10%
The final 10% is paid on practical completion and handover, at which point the PT PMA shares (under the HGB structure) are transferred into your name, or the assigned leasehold interest is registered, depending on which ownership structure you selected. Title registration is completed by the notary.
If things go wrong
All construction projects carry the risk of delay. Our purchase agreement specifies a target handover window and a longstop date. If practical completion is not reached by the longstop date, you have contractual remedies — typically including interest compensation for the delay period, and in the case of extended default, a right to withdraw with a defined refund schedule. This is written plainly in the purchase agreement, not buried in small print. Your lawyer should walk you through the specific dates and remedies applicable to your contract before you sign.
Because each villa is held in its own dedicated PT PMA, your title sits at the level of a single-purpose vehicle rather than at the level of the group. The villa company's only asset is the villa. This insulates your title from unrelated activities of the parent group. In the unlikely event of developer insolvency before completion, you retain your title position in the PT PMA and the work already completed. We hold professional indemnity cover and our construction partner carries its own contractor all-risks insurance covering the physical works on site.
Additional protections
We strongly recommend every buyer engages their own independent Indonesian notary or lawyer for due diligence on the PT PMA, the HGB title, and the purchase agreement. We will provide a shortlist of independent notaries we have previously worked with — you are not required to use any of them, and we encourage you to use your own if you prefer. For Australian-resident buyers, we further recommend your Australian lawyer or accountant reviews the structure before you commit funds, particularly if you are purchasing via a trust, SMSF or corporate entity.
During construction, the principal contractor carries Contractor's All Risk (CAR) insurance covering the works on site. Upon handover, the villa is transferred to you with a standard defects-liability period (typically 12 months), after which you are responsible for your own structural and contents insurance — we can recommend local and international brokers.
We will never ask you to send funds to a personal bank account, an unrelated third party, or a payment channel outside the agreed escrow flow. Every invoice is issued from a named Kinnara or PT Saraya entity, matches the VAT and company identifiers on your signed agreement, and is traceable back to the project account. If you ever receive a request for payment that does not match this description — whether by email, WhatsApp, phone call or social media — do not act on it. Contact us directly using the number on the Contact page and we will confirm whether the request is genuine.
Every number and date on this page — reservation period, longstop, delay remedies, refund schedule, defects liability — is set out explicitly in your Purchase Agreement. Request the full due diligence pack and have your lawyer walk through it with you before signing.
Nothing on this page constitutes legal, financial or investment advice. It is a plain-English summary of the contractual and operational protections that apply to a Saraya villa purchase. Your Purchase Agreement is the binding document and sets out the specific dates, percentages, remedies and schedules that apply to your contract. Take independent legal and tax advice in your own jurisdiction before you commit funds.
