Step-by-Step Guide on Land Title Transfer

How do you transfer the title of properties? What documents we need to prepare? Here is what you need to successfully transfer land titles.

panduan balik nama properti, Guide to land title transfer in Indonesia
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A land title transfer of a certificate of ownership is the process of transferring rights that is carried out after every sale and purchase transaction of land or buildings in order to transfer the status of ownership to the buyer. To simply say, when you have successfully purchased land or building, the next step to do is to transfer the name on the house or land certificate to your name.

Transferring a land title is important for strong and valid proof of ownership. Land transfer title can be done at the Land Office (kantor pertanahan) or the National Land Agency or BPN of the district or location where the land is located.

So, how do you transfer the title of properties? Is there anything that you should be aware of or prepared for? Or how much does it cost? Lokalist has summarized everything you need to successfully transfer land titles. Read up!

panduan balik nama properti, Guide to land title transfer in Indonesia

1. Seek for PPAT or land deed conveyancer

To be able to do a land title transfer, you will need to hire a PPAT to make it easier for you. Make sure to prepare these documents:

  1. The Original Land Certificate
  2. Buyer’s and seller’s ID card
  3. Application for a land transfer title that has been signed by the land or building owner.
  4. Proof of SSB-BPHTB (Surat Setoran Bea Perolehan Hak Atas Tanah dan Bangunan) payment, or the Deposit Fee for the Acquisition of Land and Building Rights.

2. Get all of the additional documents prepared

If you have sought a PPAT, they will give a cover letter that you will have to bring to BPN along with the documents above. But if you decided to do a land title transfer on your own, you will need to prepare the following documents:

  1. SPPT-PBB or Payable Tax Returns of Land and Building Taxes
  2. Permit for transfer of rights for flats and state land
  3. Affidavit of the prospective recipient of rights

panduan balik nama properti, Guide to land title transfer in Indonesia

3. Visit the National Land Agency or BPN

Once you have your documents all prepared, the next thing to do is to bring all the documents to the National Land Agency of the district or city where the land is located where they will check all the legality of the documents.

If all the documents are approved go directly to the checkout counter. You will be provided with an invoice that is needed for registering the process of transferring the land certificate title later on. Thereupon, the National Land Agency will start processing the land title transfer from the name of the previous right holder to a new name, which is yours.

Finally, you will be given information on when your land certificate can be taken. It usually takes around 5 working days. So be a little patient at this point!

How much does it cost to transfer land title certificates?

To calculate a land title transfer fee for a land certificate, you can use the following formula from the Ministry of Agrarian and Spatial Planning/BPN RI based on the Sales Value of the Tax Object (NJOP). So, before calculating the cost of a land title transfer, make sure to check on the Value of the Tax Object through the local government website.

Land value (per m2) x land area (m2)/1,000

If a plot of land has a value of IDR 500.000 per m2 with a total land area of ​​100m2, then the calculation will be:

Rp 500.000 x 100/1000 = Rp 50.000

But if you want an easier process, hiring a land deed conveyor or PPAT will help you big time. Of course, it will cost you more but prices will already include the cost of a notary service, the making of a deed of sale and purchase, and the land title transfer.

panduan balik nama properti, Guide to land title transfer in Indonesia

Take notes, there will be other additional costs that you will need to pay, which includes:

Fee for the Acquisition of Rights on Land and Buildings (BPHTB) in the amount of 5 percent from the selling price of the land and buildings minus the Acquisition Value of Non-Taxable Tax Objects.
Information service fee for Land Value or Property Asset Value per plot is Rp 50.000
The cost of checking land certificates which cost Rp 50.000

Remember, transferring a land title should be the first thing you should do once you purchase a land or building to have legal proof of ownership. Make sure you get all the required documents ready!