Every sale and purchase transaction of land or buildings in Indonesia cannot simply be carried out with a receipt or payment agreement. To be legally valid and have binding power, the sale and purchase must be confirmed in a deed officially issued by a Land Deed Official (PPAT). Many may wonder, why must it go through a PPAT and not just a simple written agreement?
According to Notary & Land Deed Official (PPAT) Dhenik Ayu Ningtiyas, S.H., M.Kn., a sale and purchase deed (AJB) is a legal instrument that provides certainty of ownership rights. This deed is not only a written record but also proof recognized by law that the ownership rights of land or property have legally transferred from the seller to the buyer. Without a PPAT deed, the process cannot be registered with the National Land Agency (BPN), which means the buyer cannot obtain a land certificate in their name. In other words, even if the buyer has paid in full, the ownership cannot be recognized without a PPAT deed.
In addition, PPAT has legal authority regulated by law to ensure that all obligations of both parties are fulfilled. PPAT verifies the validity of certificates, checks for encumbrances such as mortgages, ensures that taxes and duties have been paid, and ensures that the transaction is carried out transparently and in accordance with regulations. Thus, a PPAT not only issues the deed but also protects the rights of both parties involved.
The existence of a sale and purchase deed also provides long-term protection. If one day there is a dispute, such as when the seller claims they never sold the property, the deed serves as strong legal evidence in court. Without a PPAT deed, the buyer risks losing ownership despite having made payment.
Notary & PPAT Dhenik Ayu Ningtiyas in Bali emphasizes that many property transactions fail or end up in dispute because they were not carried out through official procedures. For example, some investors may be tempted to avoid costs by skipping the PPAT process, but such actions actually bring greater risk since ownership will not be legally recognized.
In conclusion, a sale and purchase deed must go through a PPAT because it is the only legal way to ensure property ownership rights are valid and protected. By going through a PPAT, all obligations such as taxes, certificate checks, and registration at BPN are fulfilled, so that the buyer truly becomes the legal owner of the property. If you are planning to buy property in Bali, make sure to consult with Notary & PPAT Dhenik Ayu Ningtiyas so that your property ownership is legally secure, transparent, and trusted.