To conduct buying a house that is achieved through auction, at the beginning, the thing is not as the procedure of ordinary transaction. The reason is because the buyer does not conduct the transaction with the house owner, however, it is through the appointed bank because the owner fails to settle the given credit (Stuck credit).
How is the auction factually conducted?
Action can be conducted in two ways, namely:
I. The sole process of Auction at Auction House
The direct carrying out of the auction can merely be done when there is no possibility of objection by the asset owner (may be a house or commodity), and the commodity to be auctioned has already been possessed by the auction proposer (in state of no need of clearing) in other word it is considered as the category of voluntary auction.
For conducting the auction, the auction proposer can apply the auction at the Private House of Auction or the State House of Auction. If the auction is done at the Private House of Auction, there must aid of the State Auction Office. Hence the Private House of Auction’s duty is merely to prepare the needed documents.
In the proposal of auction, the proposer has to attach:
a. Letter of auction proposal.
b. Letters of somation which is done personally, for successively three times.
c. Owner data of security/collateral will be put in auction (copy of certificate, Tax of land and Building/ PBB, Building Permit/IMB, etc).
d. Owner data of security/collateral will be put in auction (copy of identity card, family card and marriage certificate).
e. Written statement of auction proposer (creditor) explaining that the creditor freed the Auction Office or the House of Auction from any claim that may appear in the future.
Having completed all data needed, schedule of auction is requested and the auction is to be announced on newspaper 2 times (2x) at the intervals of 15 (fifteen) days. After the announcement is done, the AUCTION can be carried out.
The winner of the auction will be given deed of Auction Treatise after payment of security/mortgage that is put in auction is done plus payment on charge of Income Tax (PPH) and Charge on Land and Building Right Income (BPHTB).
II. The Carrying Out of Auction through Judicial Court Decision
- Remains in possession of the security/mortgage owner (not cleared).
- Indication of rejection from security/ mortgage owner.
The process of carrying out auction by judicial court can be done through the following stages:
1) Creditor as the Auction Proposer submits proposal of conduct of mortgage confiscation.
2) After the Decision of Mortgage Confiscation has been issued, the security/mortgage clearance is done under the instruction of Judicial Court, the next stage is proposing SKPT.
3) After the issue of SKPT, the Auction Proposer can propose the carrying out of the “Taksasi”. In the prosess of Taksasi the officials in charge to conduct it are from the Village Head Office or from the State Department of General Service/ Dinas Pekerjaan Umum (PU), in order that the value or the appropriate price of the security/mortgage to be put in auction can be decided. After the price is set up, the Chief of the Judicial Court will decide the limit price of the security/mortgage to be put in auction.
4) When the price limit has been set up, then the auction proposer proposes the scheduling of the auction.
5) After the auction proposer gets the auction schedule, announcement of auction activity is made by means of advertisement on national newspaper 2 times (2x) at interval of 15 (fifteen) days.
6) The Auction Process
In the process of buying through auction, the buyer to be must submit cash deposit as required at least (1) one day before the auction event.The next activity is to conduct bargaining. The buyer to be who proposes the highest bargain will be the one chosen as the winner and gets the right to poses the land and the building at the decided price.
After the meant price is paid and followed by payment of Income tax (PPH) and Land and Building Right Income Charge (BPHTB), the buyer will accept Auction Treatise Deed that is made by Auction Official.
The Auction Treatise Deed has the same function as the Transaction Deed which is normally made by the Land Deed official (PPAT) in the process of ordinary transaction.
To process the transfer of ownership title at local Land Office, the buyer (the auction winner) has to attach:
1. Proposal of transfer of ownership title certificate.
2. Duplicate of Auction Treatise.
3. Original certificate of land and building mentioned.
4. If the original certificate cannot be submitted, reasons of un submitted certificate mentioned are needed to be given by the Headmaster of Auction Office, they are as the following:
a. For non-execution-auction: it needs to process substitute certificate similarly as the lost certificate. The related subject announces once within one month in printing media (see article of : Lost Certificate ).
b. For the execution-auction: the substitute STP must be issued with new Right Number, while the old Right Number is invalidated. The case of issuing substitute certificate is announced in printing media on proposer’s expense.
5. Personal Identity of the auction winner or the proxy (photo copy):
a. Personal: Current Identity Card and Family Card (legalized by authorized official).
b. Corporate Body: Deed of founding and legalizing Corporate Body (legalized by authorized official}.
6. Letter of power of Attorney, in case the proposal is given to a proxy.
7. Proof of settlement of buying price.
8. Proof of payment of SSB (income cost of land and building right).
9. Proof of payment of SSP (income tax), final/ note of auction result.
10. Certificate of Mortgage Right (if the land is encumbered by Mortgage Right).
11. Letter of Roya. It is letter of statement from creditor as holder of the Mortgage mentioned, stating that he holder hands off the land and the building from the Mortgage at the amount of more than that from the auction.
Auction treatise must include statement of Roya or take out of Roya.