5 Risks of Buying Land Without AJB that Must Be Known, One of Which Cannot Change the Name of the Certificate

Illustration (IST)

YOGYAKARTA - Buying land is often considered a safe long-term investment. Many people save savings for years just to be able to own a piece of land. However, behind the transaction process, there is one important thing that is often overlooked, namely a valid legal document in the form of a Deed of Sale and Purchase or AJB.

Not a few people who buy and sell land only have a simple receipt or agreement. Transactions like this usually happen because they want a quick process or because they feel they have mutual trust. In fact, without AJB, land transactions can cause various legal risks later.

What is a Deed of Sale?

As reported on the Aesia website of the Ministry of Finance, the Deed of Sale and Purchase (AJB) is an official document made by the Land Deed Officer (PPAT) as proof that a land transaction has occurred. This is regulated in Government Regulation Number 24 of 1997 concerning Land Registration and Article 37 of PP No. 24 of 1997.

In practice, the AJB contains various important information related to land transactions. Data listed includes the identity of the seller and buyer, the object of the land, the value of the transaction, to the agreement to transfer rights to the land. All data are recorded officially so that transactions are transparent and can be legally accountable.

AJB also has an important role in the land administration process in Indonesia. This document is the main requirement for handling the name of the land certificate at the National Land Agency (BPN). Without AJB, changes in ownership on the land certificate cannot be processed officially.

5 Risks of Buying Land Without AJB

Without AJB, buyers can face various legal and administrative problems later. Here are 5 risks that need to be understood before deciding to buy land without AJB:

Transactions Not Legally Recognized

The biggest risk of buying land without an AJB is that the transaction does not have a strong legal force. Even though the buyer has paid in full, legally the ownership of the land is not necessarily considered to have changed. This can cause problems if there is ever a dispute or dispute.

Can't Change Certificate Name

Without AJB, the process of changing the name of the land certificate cannot be carried out. This is in accordance with Article 37 of Government Regulation Number 24 of 1997 concerning Land Registration which states that the transfer of rights to land can only be registered if it is proven by an act made by an authorized official, namely PPAT.

If the transaction does not have an AJB, BPN cannot process changes to ownership data in the certificate. As a result, even though the land has been paid in full, the owner's name listed in the certificate remains in the seller's name, which has the potential to cause legal problems later.

There is a risk of land disputes.

Land is a high-value asset that is often the source of conflict. If the transaction is carried out without an AJB, the buyer does not have a strong legal evidence to defend his rights. This condition can be used by other parties to claim ownership of the land.

Potential Fraud or Double Sales

Without official documents, there is no guarantee that the land is not sold to others. An irresponsible seller could sell the same land to several parties. When this happens, buyers who do not have AJB will be in a very weak legal position.

There is No Legal Certainty over Land Ownership

The AJB serves to provide legal certainty in land transactions. Without this document, the buyer does not have clear legal protection if a third party claims at some point. In the case of a dispute in court, the AJB is usually one of the most powerful evidence that can be used.

Therefore, every transaction of land purchase and sale should always be carried out through PPAT so that an AJB can be officially made. This procedure not only protects the buyer, but also provides legal certainty for all parties involved.

So that's the discussion of the risk of buying land without AJB, follow other interesting articles on VOI.ID. So as not to miss the latest news, follow and monitor our social media accounts!