Land Sales Purchase Deeds

Written by Aimee Joy David on 02/08/2024
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.

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Introduction

The Sale Purchase Deed, known as Akta Jual Beli (AJB), plays a crucial role in the process of transferring property ownership. This legal document is used in real estate transactions to formalize the transfer of ownership rights from the seller to the buyer. The AJB serves as official proof of the transaction, detailing the terms and conditions under which the property is sold and ensuring that the transfer of rights is recognized by law. This process is essential for maintaining legal clarity and protecting the interests of all parties involved in property transactions.

Definition

A Sale Purchase Deed is a legal document that facilitates the transfer of ownership of land or property from a seller to a buyer. This deed is essential in property transactions as it serves as legal evidence of the transaction and the change in ownership. The document includes details of the buying and selling activities and the transfer of rights to land or buildings.

According to Article 37 of Government Regulation Number 24 of 1997icon for new tab on Land Registration, the transfer of land rights and property rights to apartment units through various means such as buying and selling, exchanging, grants, and income in companies, among other legal acts, must be registered with a deed made by an authorized Land Deed Official/Pejabat Pembuat Akta Tanah (PPAT). This regulation ensures that the transfer of rights is legally recognized and documented.

The Importance of Land Sales Purchase Deeds

The Sale Purchase Deed is indispensable in property transactions for several reasons:

  1. Legal Evidence
    It serves as legal proof of the transaction and the change in ownership, ensuring that the transfer is recognized by law.

  2. Clarity and Transparency
    The deed provides a clear record of the terms and conditions agreed upon by both parties, including the purchase price, payment terms, and any other relevant details.

  3. Protection of Rights
    It protects the rights of both the buyer and the seller by documenting the transaction and preventing future disputes over ownership.

  4. Regulatory Compliance
    The deed ensures that the transaction complies with local laws and regulations, such as those stipulated in Government Regulation Number 24 of 1997 on Land Registration.

  5. Facilitation of Future Transaction
    Having a properly executed Sale Purchase Deed simplifies future transactions involving the property, such as resale or inheritance..

The Best Time to Execute Land Sale Purchase Deed

The optimal time to execute a Sale Purchase Deed is during the final stages of a property transaction, specifically when the following conditions are met:

  1. Due Diligence Completed
    Both parties have completed all necessary due diligence, including verifying the property's legal status, checking for any encumbrances, and ensuring that all taxes and fees are up to date. This process also includes checking the required documents are available and have been verified.

  2. Agreement on Terms
    Both the buyer and the seller have agreed on all terms and conditions of the sale, including the purchase price, payment schedule, and any contingencies.

  3. Financial Arrangements Finalized
    The buyer has secured the necessary funds for the purchase, and the seller is prepared to transfer ownership upon receipt of payment.

Benefits of Land Sales Purchase Deeds

Executing a Sale Purchase Deed offers numerous benefits for both the buyer and the seller:

  1. Legal Security
    Provides legal protection and security for both parties by formally documenting the transfer of ownership.

  2. Regulatory Compliance
    Ensures that the transaction complies with all relevant laws and regulations, thereby avoiding potential legal issues.

  3. Financial Clarity
    Clearly outlines the financial terms of the transaction, including the purchase price and payment terms, ensuring transparency.

  4. Ease of Future Transactions
    Simplifies future transactions involving the property, such as resale, inheritance, or mortgage, by providing a clear legal record.

Requirements

To engage with our Land Sale and Purchase Deed services, please gather the following informations:

  1. Property Documents

    • Land Certificate
    • Building Approval (PBG).

  2. Tax Documents
    Land and Building Land Tax (PBB) Notification and Deposit Receipt Letter (SPPT and STTS).

  3. Personal Identification

    • ID cards, Family Certificates (KK), and Marriage Certificates (if applicable).
    • Taxpayer Identification Number (NPWP)
    • Marriage Agreement Deed (if applicable)

Duration

The process for executing a Sale Purchase Deed typically takes about 5 days, although this can vary based on regional processing times and any document-specific requirements.

The Process of Executing Land Sales Purchase Deeds

The process of executing a Sale Purchase Deed involves several steps, each requiring careful attention to detail:

  1. Tax Obligation

    • Income Tax (PPh): Pay 2.5% of the land price.
    • Land and Building Rights Acquisition Duty (BPHTB): Pay 5% after deducting the Selling Value of Non-Taxable Tax Objects (NJOPTKP) and the Selling Value of Tax Objects (NJOP).

  2. Execution of the Deed

    • Appointment with PPAT: Schedule an appointment with an authorized Land Deed Official (PPAT).
    • Verification: The PPAT will verify all documents and ensure compliance with legal requirements.
    • Signing: Both parties sign the Sale Purchase Deed in the presence of the PPAT.

  3. Registration

    • Submit Deed: Submit the signed deed to the National Land Agency for registration.
    • Transfer of Ownership: The National Land Agency processes the transfer of ownership and updates the land certificate to reflect the new owner.

  4. Finalization

    • Receive Updated Certificate: The buyer receives the updated land certificate, officially completing the transfer of ownership.

How We Can Help

The Sale Purchase Deed is essential when buying or selling property in Indonesia. It serves as the foundation for the transaction, providing clarity and protection for both parties. Due to the complexity and regulatory requirements surrounding property sales in Indonesia, seeking legal advice and assistance from qualified professionals, including a notary public or land deed officials (PPAT), is highly recommended.

At Putranto Alliance, we offer comprehensive support throughout the entire process of making a Sale Purchase Deed. Our services include:

  1. Legal Consultation
    Providing expert legal advice to ensure compliance with all relevant laws and regulations.

  2. Document Preparation
    Assisting in the preparation and verification of all necessary documents, including land certificates, tax receipts, and identity documents.

  3. Fee Calculation
    Helping calculate and manage the payment of all required taxes and fees.

  4. PPAT Coordination
    Coordinating with authorized Land Deed Officials (PPAT) to schedule appointments and ensure the proper execution of the deed.

  5. Registration Assistance
    Facilitating the submission and registration of the deed with the National Land Agency.

  6. Follow-Up Services
    Offering follow-up services to address any issues that may arise during or after the transaction.

Our experienced legal team, notaries, and land deed officials are dedicated to ensuring a smooth and legally compliant property transaction.

FAQs

A Sale Purchase Deed is a legally binding contract between a buyer and a seller to transfer land ownership. It serves as legal evidence of the transaction and the change in ownership, ensuring that the transfer is recognized by law.

A land purchase agreement is a contract that outlines the terms and conditions of the sale, including the purchase price, contingencies, and responsibilities of the parties involved. It’s a legally binding document that sets the stage for property transfer. On the other hand, a Sale Purchase Deed is a legal instrument that formally transfers ownership from the seller to the buyer. Both documents are necessary to ensure that the transaction is legally binding and properly documented.

A Sale Purchase Deed must be executed by an authorized Land Deed Official (PPAT) to ensure compliance with legal requirements and proper documentation of the transaction.
The associated taxes and fees include Income Tax (PPh) of 2.5% of the land price and Land and Building Rights Acquisition Duty (BPHTB) of 5% after deducting the Selling Value of Non-Taxable Tax Objects (NJOPTKP) and the Selling Value of Tax Objects (NJOP).

Cash Principle (Azas Tunai): This principle mandates that the payment for the land must be made in full at the time of the transaction. The deed must include a statement confirming that the seller has received the full payment, evidenced by a receipt. This ensures that the seller cannot later claim non-receipt of payment.

Clear Principle (Azas Terang): The transaction must be conducted openly and transparently before a Land Deed Official (PPAT). This guarantees the authenticity of the land status, the rightful holder, and the legality of the transaction.

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