Lease extension , Bali villa glossary

In one sentence. The clause that gives the lessee the next lease term. It protects you only if it fixes the owner's obligation, the timing and the price (or formula), not 'by mutual agreement'.

The key question in any 25–30-year deal is what happens after. Most contracts on the market say "extension by mutual agreement", and Bali lawyers call that zero protection. A right exists, but the owner's obligation and the price do not.

The working structure is steps written into the contract from day one. In the projects DOMA runs that means 29 base years + 10 years on a fixed scale (initial price +10% if extended in 2027–2029, +20% in 2030–2032, +30% in 2033–2035) + 30 years under the KF formula, where the owner is obliged to extend and the price comes from the formula, not negotiation. The horizon is 69 years.

Check the owner's obligation ("shall", not "may"), the notice period (90 days in DOMA contracts), whether heirs and future land buyers are bound, and the notarial form and escrowed documents so the clause survives a change of owner.

Updated 2026-09-20. Not a public offer. Regulations change, so we cite enacted acts only and update the entry when they do.

Lease extension

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