Legal Review of Binding Sale and Purchase Agreements (PPJB) in Transactions of Transfer of Land and/or Building Rights

Abstract

This research investigates land buying and selling mechanisms in Indonesia, focusing on the role and legal validity of the Sale and Purchase Agreement (PPJB) in transactions involving land and/or buildings. According to Article 1457 of the Civil Code, these transactions establish rights and obligations for both parties. While the PPJB serves as a preliminary agreement, its legal efficacy is limited and cannot replace the official deed issued by a notary/PPAT. The research addresses two primary issues: 1) Mechanisms of land transactions within society; and 2) Legal consequences of transactions conducted without a notary. Using a normative juridical method with a statutory and factual approach, the study concludes that: 1) Urban and rural land transactions in Indonesia exhibit significant differences; urban areas typically involve formal processes with notarial involvement, whereas rural areas often rely on traditional, non-notarial practices. 2) Transactions lacking notarial deeds are only oral agreements, susceptible to dispute and manipulation, thus risking unclear ownership and boundary issues. Purchasers lack legal proof of ownership and face potential claims from other parties, while sellers may remain legally liable for the property.