Our Managing Partner of Leks&Co wrote an article titled “Court determines document legitimacy in land transaction” as published in Lexology.com.
In a recent Indonesian court case, the first stage court granted relief to a claimant in a land transaction dispute. The case raised questions about the validity of land sale and purchase without a standardized form before a land conveyancing officer (PPAT). Despite the requirement for standardized forms, arguments persisted after the agrarian law’s 1961 amendment. The court increasingly favored the use of standardized forms for legitimacy. In the case, an agreement for land and building transfer was privately made in 2005 without PPAT involvement. The court ruled in favor of the claimant, considering the privately made agreement as a valid basis to change the registered name on the land certificate. This decision, while aiming to resolve the claimant’s issue, introduces uncertainties about proper land transaction procedures, potential tax evasion, buyer good faith, and the need for consistent decisions in land disputes.
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