Category: Conveyancing Services
Written by Samuel Sri Kurnia on 06/09/2022
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.
Property Transaction Service makes handling property issues easier and faster. A client can buy or sell a house. The client can also look at basic information related to the property. The owner of the property can make a permission to authorize someone, such as a real estate agent or bank, to act on their behalf.
The lengthy procedures of checking and registering the respective property’s information might take an exceptionally long time. Hence it is advised to ask for conveyancers as a client’s extension to provide detailed documents.
With this service, we can help you draft the rights and obligations of the buyers and sellers according to the terms negotiated amongst them. In addition, we make sure the sale and purchase deed meets the legal requirements.
Law Number 5 of the Year 1960 on the Basic Agrarian Principle regulates land ownership in Indonesia. The regulation implies that the Certificate of Property Rights (Surat Hak Milik/SHM) is the strongest set of rights of a property. Unfortunately, only Indonesian citizens can acquire the certificate and it is unavailable to legal entities. The historical reason behind this may be caused by the establishment of Indonesia for many years. As such, only Indonesian people are permitted to buy land there.
Different from older times, foreigners can now buy flats and office space in Indonesia if the building has a strata title status. Hence, a foreigner might own the apartment or office building but not the land. There are also other land ownership certificates that foreigners can use, such as the Certificate of Building Use Rights and the Certificate of Cultivation Right. Building Use Rights and Cultivation Rights are applicable to legal entities that stand according to the applicable law in Indonesia. At the same time, foreigners can only use Property Rights to make their living space.
Based on Law No.5 of 1960 concerning Agrarian Principles, valid land certificates in the eyes of the law are:
There are older types of documents that the Indonesian people often use as evidence of land ownership. The Indonesian land regulation recognizes the following documents:
In advance, legal advisors are needed to prepare and negotiate the following transaction documents:
Afterwards, the procedure continued as follows:
A conveyancer is someone responsible for the legal process of buying and selling property. Their role is vital for the sale or purchase to run smoothly. They will also ensure the protection of client’s rights throughout the transaction. They help with the settlement and title transfer process to ensure their client fully understands their legal obligations. Their scope of work primarily focuses on:
Using conveyancers to handle property transactions could gain several benefits, such as:
Conveyancers are public servants tasked with ensuring that all relevant land documentation is in order before a sale or purchase occurs. They administer land and property transactions. However, their authority is limited to the district they are registered in.
Our alliances of conveyancers ensure properly executed land transactions. When you engage with us, you do not have to worry about any problems that may arise many years after the transaction. We draft the rights and obligations of the buyers and sellers according to their negotiated terms. In addition, we make sure the sale and purchase deeds meet the legal requirements. After signing the sales and purchase deed, we help register changes to the rights holders at the local Land Authority Office.
Undang-undang (UU) Nomor 5 Tahun 1960 Tentang Peraturan Dasar Pokok-Pokok Agraria
Property is a tradable instrument. You can buy and sell a property when you need funds or property. Before conducting a transaction, one must pay attention to the considerable things in buying and selling the following property, such as:
The client must pay attention to the description of property objects such as area, certificate, and related licensing letters in the agreement. The letter of agreement must mention certain conditions, such as affirmation of tax payments. Adding a statement of guarantee from the seller may be necessary. If the land you are going to buy is a joint property of a married couple, then usually, the sale of the land must be through the approval of both.
As a buyer, it is important to check the authenticity of the certificate of ownership.
As the property buyer, it would be better if the land certificate is made at the Land Deed Making Office (Pejabat Pembuat Akta Tanah/PPAT) located near the land or building mentioned. This makes it easier for you to check the authenticity of the ownership certificate.
After discussing the agreement’s contents, the related parties must bring it to the front of the notary. Regarding the cost, an agreement can be made whether it will be borne by both parties or one of the parties only. The cost ranges from about one percent of the price of land or buildings sold. For that, make sure to know the price in advance.
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