Similar but Different: Know Your Property Documents

Get to know the requirements and purpose of various Indonesian property documents for a smoother home buying experience. 

indonesian property documents, dokumen properti indonesia, ppjb, pengikatan perjanjian jual beli
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What is Perjanjian Pengikatan Jual Beli (PPJB)? Pengikatan Jual Beli (PJB)? Or Akta Jual Beli (AJB)? There are a big pile of property documents terms that might sound confusing and even unfamiliar to first-time homebuyers. Given the amount of paperwork and documents, it is no surprise that it can be overwhelming to understand. Yet, the first thing we all want to avoid is costly mistakes, namely fraud.

Take your time to get to understand these three different yet similar property documents for a smoother home buying experience. 

indonesian property documents, dokumen properti indonesia, ppjb, pengikatan perjanjian jual beli

Perjanjian Pengikatan Jual Beli (PPJB)

PPJB or Sale and Purchase Agreement is made as a temporary binding prior to the making of an official Akta Jual Beli (AJB) or Deed of Sale and Purchase that outlines the different terms and conditions that are related to the sale. PPJB acts as a non-authentic agreement of an initial bond between the seller and the home or land buyer.

Due to its non-authentic property, PPJB does not bind the land or house as the object of the agreement, and of course, does not cause the handover of land ownership from the seller to the buyer.

PPJB is usually made underhand for some reason, such as if the buyer has not fully paid off the payment. Every purchase agreement regarding the seller and buyer are stated in PPJB, including selling price, repayment due date, and the AJB or Akta Jual Beli is made.

What you need to know about Perjanjian Pengikatan Jual Beli (PPJB)

A purchase agreement should include all details necessary according to the law to avoid any future misunderstandings regarding any part of the transaction between buyer and seller.

Purchase Binding Objects
There are three objects that must be included in the PPJB, that includes building area along with architectural and technical specification sketches, land location in accordance with the inclusion of the lot number and land area along with the permit.

  • Seller Obligations and Guarantees
    Sellers are obliged to hand over a housing unit or lot in accordance with what is offered to the buyer so that PPJB becomes the legal guide for the buyer.
  • Buyer Obligations
    Buyers are obliged to pay installments on houses or lots and sanctions for late fees in the form of fines.
  • The contents of the Sale and Purchase Agreement (PPJB) must be in accordance with the Government’s Decree
    As the agreement acts as a legal force as well as a guarantee, everything that is stated in PPJB must be in accordance with what has been regulated in the law.

akta jual beli, land sales deed, indonesian proof of property transaction

Akta Jual Beli (AJB)

Known as Deed of Sale & Purchase, is a legal document that proves and records the sale of a
Property. Akta Jual Beli (AJB) serves as proof that both parties have reached an agreement of sale or purchase.

Unlike PPJB, Akta Jual Beli is an authentic document issued by a notary or land deed official (PPAT) and is one of the requirements of property selling. Akta Jual Beli (AJB) is the strongest legal document in the name of the law.

Pengikatan Jual Beli (PJB)

Pengikatan Jual Beli (PJB) or known as Buy and Sell binding is an agreement between the seller to sell their property to the buyer made by a notary deed. PJB is usually made due to certain reasons, namely, the property payment has not been fully paid or the taxes in the sale and purchase transaction have not been paid.

For that matter, there are two types of PJB, settled PJB and unsettled PJB. Settled PJB is for the transaction on the object of sale and purchase that is outside the working area of the notary or PPAT concerned.

Meanwhile, unsettled PJB is issued if the sale and purchase price payment has not been paid in full by the seller. PJB that has not been paid off must be followed up with AJB at the time of repayment.

For more property terms you need to know, check out this article!