Tuesday, March 25, 2014

Legal Disputes in connection with Transactions of Plots of Land or Houses in Real Estate, Apartments, or Flats

The Government has issued (i) Law No. 1 of 2011 on Housing and Residential Area, (ii) Decree of the Minister for Public Housing No. 9/KPTS/M/1995 regarding the Guidelines on the Conditional Sale and Purchase of Houses, and (iii) Building Permit (IMB) regulation under the Regional Regulation of DKI Jakarta No. 7 of 2010.

Most of the cases begin with a lawsuit filed by consumers. Consumers realize the facts that:
1)         The Conditional Sale and Purchase Agreement (Perjanjian Pengikatan Jual Beli/PPJB) abolishes the rights of consumers.
2)         The Conditional Sale and Purchase Agreement was only provided to the consumers after the deposit advance (uang muka) has been paid.
3)         The consumers are faced with difficulties to reclaim the deposit advance that have been paid.
4)         The consumers are deceived by false promises of the Developer.
5)         Facilities that the Developer promised to build are not realized.
6)      Requirement for entering into the Sale and Purchase Deed (Akta Jual Beli/AJB) is made to be complicated, and the notary/land deed official fees are above the common rate.
7)       The arrangement for obtaining the Building Permit (IMB) is made to be complicated by the Developer.
8)         The land certificates are held by the Developer for various reasons.
9)         Breach of contract (ingkar janji/wanprestasi) by the Developer.

In those situations, negotiation and warnings by the consumers are considered less effective. The responses given by the Developer more than often are less than adequate. While the Developer has received payment from the consumers, the consumers’ rights are violated.

To seek for justice, it is recommended to bring the case to the competent District Court or by reporting the crime to the police and for further followed up by the prosecutor.

Discussions among some advocates in area of property reveal that apparently reporting to the police and having the prosecutor handle the case is the effective legal remedy for property consumers.

Supervision by the Indonesian Police Watch, Judicial Commission, as well as the Corruption Eradication Commission (Komisi Pemberantasan Korupsi/KPK) has made a lot of progress on efforts to prevent violations of the law and on efforts of the justice seekers. Whilst searching for justice by pursuing legal remedy will take some efforts and incur some expenses, nevertheless it is the chance for every citizen to use the right to show to the society on how the law should be enforced.   

Said, Sudiro & Partners
Indonesian Attorneys at Law
Sampoerna Strategic Square
South Tower, Level 18
Jl. Jend. Sudirman Kav. 45 - 46
Jakarta 12930 Indonesia

Phone: (62-21) 575.0983
Fax: (62-21) 575.0803

Websites: www.ssplegal.com

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