What If HGB Home Runs Out? This Is An Explanation, Time Term, And Extension Terms

Illustration of land certificates (ANTARA-M Riezko Bima Elko-HO-Ditreskrimum Polda Sumsel)

YOGYAKARTA Land owners, both government and private, allow the community to manage land by having a Building Use Rights (HGB) certificate. The certificate is given as proof that the land manager has permission from the land owner to utilize land that does not belong to him. However, it should be noted that HGB has a certain period of time so it needs to be extended. Then what if the HGB of the house runs out?

The existence of a Building Use Rights Certificate (HGB) is regulated by the Government, namely in Law Number 5 of 1960 concerning Basic Regulations of Agrarian Principles. Article 35 paragraph 1 states that HGB is the right to establish and have buildings on land that do not belong to itself.

This means that people who have a Building Use Rights (SHGB) certificate are not land owners, it's just that they have the right to use the land either to construct or have buildings to be used for certain purposes.

The validity period of the HGB certificate remains limited, which can reach 30 years. If the time limit expires, the SHGB holder can extend it to 20 years and can be updated for a maximum period of 30 years.

SHGB holders are required to apply for an extension of this right no later than 2 years before the HGB validity period is completed, as stipulated in Government Regulation (PP) Number 18 of 2021 concerning Management Rights, Land Rights, Flats and Land Registration Units.

However, if the land manager does not extend the HGB, the land status will be returned to the owners, both the government and private companies. This is also regulated in PP No. 18 of 2021.

Article 35 states that the previous HGB holders who no longer meet the requirements must release or transfer the HGB on the land they manage to other parties who meet the requirements within one year.

However, if in that period of time the rights are not released or transferred, then the rights they have will be removed due to law. On the basis of this rule, HGB holders are advised to pay attention to the validity period as well as the time requirements required in the extension of SHGB.

As explained at the beginning, the extension of the HGB must be carried out a maximum of 2 years before the end of time. Extension can be done by coming to the office of the National Land Agency (BPN) according to the domicile. SHGB holders can go to the counter by bringing the document requirements as follows.

After that, the applicant must fill out the application form provided. In the form that must be filled in, including identity and land data. Applicants are also required to pay the inspection fee and the HGB registration fee.

If all the files are complete, the officers will check the land and then the issuance of a Decree on Extension of Time and Issuance of a Regional Office Extension Decision (Kanwil).

In addition, there will be the issuance of the BPN RI Extended Time Decree, as well as the registration of the rights and the issuance of certificates. If everything is done, the applicant can take it at the counter.

That's information regarding what if the HGB of the house runs out. Visit VOI.ID to get other interesting information.