Deed of Sale and Purchase: Definition, Functions, and the Making Process

Understanding deed of sale and purchase – Everyone will agree that property is a very important type of asset to own. Property such as houses and land is a promising investment not only as a place to live but also attracts many people. This is because property investment offers promising income opportunities and tends to be safe.

However, property such as buildings and land carries a relatively high risk of ownership. In fact, we do not rule out the possibility of property disputes if property ownership is not managed properly. To prevent this, a sale and purchase deed or commonly abbreviated as AJB is mandated.

In general, the deed of sale and purchase is a letter or certificate officially issued by the PPAT which contains information about the new owner and the agreement on the transfer of property rights between the parties concerned. Of course it is very important to understand the role of this document in order to avoid the risk of problems when buying and selling land and buildings.

So, to find out more about what a sale and purchase deed is, what its function is, how to manage it, and examples of explanations, let’s look at the full discussion below.

What is the Deed of Sale and Purchase?

The deed of sale and purchase is one of the documents that cannot be made by yourself because it requires the services of a notary or PPAT (Land Deed Making Officer). The purpose of making a sale and purchase deed is to prove the existence of a sale and purchase transaction and the transfer of rights to land and buildings.

When buying land or a building, this document is one of the legal requirements to protect you if the seller commits an offense and can cause you harm, and the buyer must have evidence that can be brought to court.

The sale and purchase deed has considerable legal force and has a legal or legal basis which includes the form of a land or building purchase agreement.

A deed of sale and purchase is also required when changing ownership of the item you are buying or selling. The purchase of land and buildings is of course very valuable, but if this purchase is equated with the purchase of other goods whose value is much lower, criminal cases such as fraud that harms one of the parties can of course be carried out easily.

Making a sale and purchase deed must be done officially by a notary. If this document is produced by a party that does not comply with the rules, this document cannot be made as valid evidence from a legal point of view. Compliance with proper regulations.

When purchasing land or property, managing the title and deed of sale is essential to ensure peace of mind for both parties. This document is original and implies conditions closely related to the process of manufacture, form and physicality.

Not everyone can do a sale and purchase deed, so you should find a notary or a trusted government official to do it. In addition, it is important for readers to understand the function and use of this document to avoid misuse.

Reversal of the name to buy land or property with a sale and purchase deed is a commitment made by both parties. If any party is found to be involved in fraud, the situation becomes more complicated, so don’t forget this document.

Of course, this document also plays an important role for the seller to ensure the buyer’s payment process is in accordance with the original contract. In addition, the deed of sale and purchase of land is also often associated with documents such as sales agreements and deed of ownership, but there are differences between the two.

Sale Purchase Deed function

Of course, before dealing with making a sale and purchase deed, you must know what must be in this document. One of the main functions in preparing this document is as legal evidence of transactions made by both parties in purchasing land or houses.

Of course, the terms of both parties must also be met, according to a mutual agreement, with a mutually agreed upon amount. You must acknowledge and agree to all items listed in the purchase and proof of purchase.

This provision becomes null and void if one party does not agree. Another function of this document is as legal evidence that can be brought to court if it is found that one of the parties has not fulfilled his obligations under the previous agreement.

This document becomes evidence of the case and convicts one of the parties. With this deed, both parties have legal protection, so you don’t have to worry when making large transactions.

Another function is to prove that sellers and buyers have fulfilled their rights and obligations based on applicable regulations. This legal evidence can serve as a guide for both sellers and buyers, so it is important to include it in transactions.

Reversal of the name to buy land or property with a sale and purchase deed is a commitment made by both parties. If any party is found to be involved in fraud, the situation becomes more complicated, so don’t forget this document.

Of course, this document also plays an important role for the seller to ensure the buyer’s payment process is in accordance with the original contract.

Apart from that, deed of sale and purchase is also often associated with documents such as sales agreement and deed of ownership, but there are differences between the two.

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Compulsory Items Included in the Deed of Sale and Purchase

Deed of sale and purchase is a document in the form of a deed which contains several provisions and articles relating to the sale and purchase of land or buildings. This document usually requires several things, such as documents such as identity cards (KTP), certificates of land rights, land rights certificates of the United Nations.

The consent of the husband and wife is usually also required so that the mixing of joint assets between husband and wife does not cause disputes in the future. This is an object in the form of a document required for a sales contract, which must be attached.

Several documents must be examined first to prove the validity of the data which is information from both parties. Of course, the purpose of data checking is to prevent one-sided commercial fraud.

From the discussion above, it can be concluded that the deed of sale and purchase has several important features that can make the trading process authentic and minimize the risk of property disputes.

Learn more about the various functions of the sale and purchase agreement below

  • Legitimate evidence that the transaction or sale of land, houses or other types of buildings takes place according to the price and terms agreed upon by the parties concerned.
  • Failure of one of the parties to carry out its obligations based on the previously agreed agreement.
  • Both parties have fulfilled their obligations and rights in accordance with the previously made agreement, which is valid evidence for both parties.

Characteristics of a Legitimate Sale and Purchase Deed

In conducting a land or building sale and purchase transaction, the authenticity and legality of the sale and purchase agreement must first be checked.

Be sure to participate in monitoring all stages of the sales contract so as not to be deceived. The method is as follows.

1. Don’t let property sellers worry about documents without verifying the manufacturing process with a notary or PPAT. If necessary, it is agreed in advance with the seller and the PPAT office to process documents together and conclude a sales contract according to the agreement.

2. If AJB’s manufacturing goes through stages or is found not to follow the correct process, we should be suspicious. Equally important, ensure that the sales contract is executed through a reliable PPAT service and registered with ATR or the Ministry of BPN. You can easily check the legitimacy and reliability of PPAT services through the official website of the Ministry of Agrarian Affairs/BPN.

3. remember to bring two witnesses and a companion when signing the sales contract. Witnesses who become witnesses can be residents of the neighborhood or the area around the property. For example the RT administrator or the local RW administrator.

Cost of Making Sale and Purchase Deed

For those who are interested in making a deed of sale and purchase, it is advisable to know the costs in advance. In general, you can create this document yourself, but some people prefer to rely on a management services agency.

Besides being more practical, you need to prepare more money to use this service. To draw up a deed of sale yourself, you need to contact the BPN office. BPN usually charges a fee of 5% to 1% of the total transaction value.

Collecting these fees is worth it. Because by using these funds, he engaged in notary services, issued deeds and changed names. However, you will also need to provide funds to pay for land and rent. The fee is 5% of the value of the house less the acquisition value of the property tax free i.e. the cost of the sale and purchase deed.

The PPAT Bureau should have determined the amount of the contribution according to the needs of the party submitting the contribution. If an entrepreneur wants to use the services of an agency, they have to pay for the service, so they have to set up a higher fee, but it’s still convenient.

When making a sale and purchase deed, of course there are costs that must be prepared. Who bears the costs, the seller or the buyer? These costs are usually borne by the buyer. However, please note that these fees can be adjusted again after consultation.

If there is an exception in the contract that the seller bears production costs, that is also fine. Neither buyer is liable for any costs, although this is usually the case.

Because, logically the buyer is the person who gets the desired building or property. The buying process requires a purchase contract and the costs are automatically borne by the buyer.

However, it doesn’t matter if the seller and buyer share the costs as long as both parties know and agree to the agreement. Avoid conflicts and misunderstandings that can harm both parties later.

The difference between AJB, SHM, and PPJB

After knowing the meaning of the deed of sale and purchase above, it might be confusing to distinguish between SHM (Certificate of Property Rights) and PPJB (Sale and Purchase Agreement) or what can also be called property rights. However, if explored further, both AJB, PPJB, and SHM have their respective roles and functions.

1. Deed of Sale and Purchase (AJB)

In the deed of sale and purchase, the deed is evidence or fact of the existence of the sale and purchase of goods, both land and buildings.

2. Certificate of Ownership (SHM)

SHM (Certificate of Property Rights) is the best and strongest proof of ownership of all property, be it land or buildings. Therefore, it is understandable whether SHM is proof of property ownership.

3. Sale Purchase Agreement (PPJB) 

PPJB or (Sales and Purchase Contract Agreement) is the first contract between the seller and the buyer of the property. Compared to the two previous types of documents, this PPJB is not authentic.

From the explanation above, it can be concluded that before submitting a sale and purchase deed and obtaining a SHM, the parties conducting a property sale and purchase transaction must first process a document called the PPJB.

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This is because the deed is drawn up by the prospective buyer or seller and other parties and does not require the involvement of a notary.

Therefore, the PPJB is only a document that explains whether there is a process of buying and selling land or buildings by the parties whose names appear.

In essence, the deed of sale and purchase is an important file that is used to complete a sale and purchase transaction of a property, be it land, house or other type of building, and must be submitted to the PPAT or local notary. will be executed.

After the sale and purchase deed document has been processed, the buyer can record the delivery of the name certificate and take the buyer’s SHM. Sellers and buyers can carry out a transaction deed through PPJB because there is a binding agreement for the sale of property before the sale and purchase deed is finalized.

Therefore, although these types of documents have different roles, all three are related and involved in a series of transactions or property purchases.

The difference between Sale and Purchase Deed and Land Certificate

For those who often misunderstand that a sale and purchase deed and a Land Certificate are the same document, we will clarify the difference between the two to help you better understand the use and function of the two different types of documents. .

Of course, from the understanding that we have provided, the reader already knows that this document is proof of a sale and purchase transaction of land or a house at a mutually agreed price.

Land Certificate means land rights, management rights, certificates written in the land register. These certificates are also classified into various types such as Flat Unit Title Certificates, Property Rights Certificates and others.

Another difference is that the deed of sale and purchase is issued by the Land Deed Making Officer (PPAT). PPAT is appointed directly by the Director of Home Affairs from the Home Office. Land certificates, on the other hand, are issued by BPN and are usually assisted by the PPAT’s role as well.

Can the Deed of Sale and Purchase be Considered as Legal Proof of Ownership?

You may wonder whether the deed of sale and purchase can later become legal proof of ownership from a legal point of view, so the deed of sale and purchase is not proof of legal ownership of land or property.

A sale and purchase deed proves that you have purchased the property or land, and does not prove ownership of the property. Therefore, it is different from Freehold Certificates or SHM, which have the highest title and the strongest legal rights.

Don’t misunderstand again to understand the difference between proof of ownership and proof of process. It is not possible for the owner of the sale and purchase deed to prove that he owns the land or property because the two terms are different.

To own certain objects, you need a SHM with a certificate issued by BPN. The reason SHM is the best proof of ownership is because building use rights and usufructuary rights have a certain period of time.

As with renting, the building or land is not entirely yours. Land titles provide the highest level of proof of ownership, but that doesn’t mean you shouldn’t need a sale and purchase deed when buying or selling land or property.

Example of Deed of Sale and Purchase

The deed of sale and purchase must comply with the rules and regulations accurately and completely. In the process of making it, there are several important dates or information that must be included in the deed of sale and purchase in connection with the sale and purchase transaction or transfer of rights over the land or building in question.

For further information, here are some conditions that must be included in the deed of sale and purchase:

  • Date or time of delivery of goods
  • Buyer’s personal information
  • Seller’s personal data
  • Information about land or houses being traded. This information includes price, location, and size of the property.
  • PPAT or notary letterhead
  • Matters agreed upon by both parties regarding the land purchase contract.
  • Signature of both parties on the sales contract and approval on stamp duty.

How to make a sale and purchase deed

When drawing up a sale and purchase deed, it might be a bit confusing as to what to do first and what documents to prepare. Therefore, we present procedures that can be followed so that you don’t make mistakes while in the PPAT office.

1. Preparation of Various Supporting Documents

First, you need to prepare various documents required for a sales contract. Based on the identity of the seller and the buyer, it can be in the form of a KTP or KK. In addition, it must include your name, date of birth, ID number and clear address.

In addition, the procedure that must be followed is a letter of proof of interest or approval issued by the village head or sub-district head. The letter states that the party concerned controls the land or property, then will obtain a power of attorney if given this.

You must also bring a photocopy of the current year’s PBB SPPT file to match the original document. In addition, you must bring proof of payment of sales and purchase taxes, land registry documents, and proof that the subject matter of the lawsuit is inviolable.

2. PPAT office visits

The next step in making the deed is to complete the various documents mentioned above and then visit the local PPAT office. Prospective property owners must come to the office and state the purpose and purpose of their arrival.

The PPAT office then verifies legal feasibility and technical data from the old land register or land owner to the Land Agency office. If the data is good and valid, the PPAT must proceed to the next stage and wait for the process to complete.

Author: Ziaggi Fadhil Zahran

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