In carrying out my daily job, I was several times inquired by my ordinary clients, saying that they wanted to make transfer of title ownership of land certificate, based on Receipt of paid transaction from the sellers over land or building. Some of them thought that by merely using the Paid Receipt they might have done the transfer of title of certificate ownership of the land they bought.
In reality it is not just that easy. The problem may arise in if the seller cannot be anymore encountered or be ceased. In the case, the buyer will get difficulty in transferring title of ownership over the mentioned land or building.
In practice, in order to carry out transfer of title of ownership (in this case transfer of right) over land and or building, the administration must be done in specific way, those are: procedures of transaction, bequest, swap, or in-bring (inclusive into a corporate).
In this circumstance I will discuss the subject about Right Transfer by means of selling and buying.
Selling and buying are processes of shift of right that have been existing since the ancient time, and normally they were managed by Law of Local Customs and all are bearing the principle of : Clear and Cash. Clear means that they are done before Common Official who has the power on the cases, and Cash means that they are paid entirely at one time. Therefore if the price is not done thoroughly, the processes of selling and buying mentioned cannot be done. Currently, the subject which is given the power to carry out the selling and buying is the Land deed Official (Pejabat Pembuat Akta Tanah/PPAT). This comprises of:
- Temporary PPAT – It is a Camat or a Head of Sub district who is promoted as the PPAT for remote areas.
- PPAT- It is a Notary who is promoted based on the decree of the head of BPN or the Board of State land Matters for a certain professional region.
What are the data to be fulfilled for process of Selling and Buying and transfer of title of ownership?
In the transaction of selling and buying of land and or building, normally PPAT related will require standard data that covers:
I.Land data, comprising :
- Original five year latest PBB (Tax of Land and Building) including Receipt of Payment (proof of payment)
- Original land certificate (for crosschecking and transfer of title of ownership).
- Original IMB or Letter of Building Permit. (If available, and to be given to the buyer after process of Deed of selling and Buying is done)
- Proof of payment receipts of electricity, telephone, water (if available)
- In case there is security/ mortgage encumbrance, Letter of Roya from related Bank is required.
Note: Points a and b must be absolutely available while the others are optional.
II. Data of Seller and Buyer (each ) within the following criteria:
a. Personal :
a 1. Copy of Identity cards of husband and wife
a 2. Copy of Family Card and Marital Certificate
a 3. Copy of Indonesian Nationality Card or change of name (if available for Indonesian Nationality of other race heredity)
b 1. Copy of Identity Cards of Directors and representing Commissioner
b 2. Copy of complete Corporation Statute including legalization from the Minister of Judicial Court
b 3. General Meeting of Company Stock Holders to sell or Written Statement of substantial asset.
c. In the case of husband and wife or both whose names are written in the certificate if ceased, the one who conducts the transaction is the Linear Heir. Here in the date needed are :
c 1. Letter of Inheritance
– For native people : Letter of inheritance that is witnessed and approved by Village Head and legalized by the Sub District Head/Camat
– For Indonesian Nationality of other race heredity: Letter of inheritance from a Notary
c 2. Copy of Identity Cards of all heirs
c 3. Copy of Family card and Marriage Certificate
c 4. All of the heirs must appear to sign on the Transaction Deed /AJB, or Letter of Approval and Power Granting of all of heirs to one of them, that is legalized by Notary (in case of in absentia)
c 5. Proof of Inheritance Tax payment, at the amount of 50% of the Transaction of PBHTB after subtracted of part un taxable. The amount of part un taxable depends on the related land.
Before the transaction is done, there are things to be carried out:
- Originality and legalization cross check of the land certificate at the land office in power.
- All parts must settle transaction tax over land and building mentioned, where :
Sale tax (Pph) = NJOP/ sale price x 5%
Buy tax (BPHTB) = (NJOP/sale tax – value of part un taxable) x 5%
Note : the value of each region taxable is not the same, and concerning with the value of subject taxable I will mention in my description as following:
Example of the tax sum :
Sale Value of Tax Object / NJOP is Rp.250 million, located at Bekasi.
Part untaxable value of Bekasi to NJOP < Rp. 200 million
The taxable must be paid is =
(( Rp. 250,000,000 – Rp. 200,000,000) x 5%) x 50%
After all data are completed, the originality of the land certificate is cross-checked, all taxes are paid and reported, hence the Land Deed Official/PPAT can carry out the transaction. While the signing of the land transaction deed is being conducted, the buyer must have to settle the amount of price of the land and building mentioned, in the form of cash or trough inter banking transfer payment/ RTGS.
Based on the State Regulation / PP No. 24/2007, the certificate of transfer of title of ownership proposal must have been carried out on the latest seven working days after the signing of the deed and together with it the following items must be attached:
- Proposal of registration of ownership title transfer certificate
- Original deed of transfer right ( one copy)
- Original certificate
- Identity Card of Seller/Buyer
- Card of Indonesian Nationality/ Change of Name
- Statements of land ownerships
- Proofs of registration payment cost of land right transfer from specific treasurer.
- Photo copy of the latest Land and Building/PBB Tax settlement.
- Approved Right Transfer
- Land usage aspect (in case there is land usage change)
In the normal condition, in the context that there is no problem with the land, the transfer of title of ownership process may take place within maximally one (1) month after it is registered. However, the buyer has got the status of new owner of the land since the signing of the land and/or building deed mentioned.
the State Regulation / PP No. 24/2007