Definition of Grants, Legal Basis and Examples of Letters

Meaning of Grant – In everyday life, surely you often hear the term grant. The term grant is used by many to mean some kind of gift. For example, in matters of state, some media often interpret grants as giving funds from one agency to another in a sizable amount.

Basically, a gift can indeed be said as something that is given from someone while still alive to someone who is desired. Grants are quite often encountered in various social events, such as giving land from someone to be used by a social, educational, to religious institution.

Sometimes also, grants are given in the form of goods or money. Giving this type of gift is common when parents give inheritance to their children before they die. Grants themselves can also be made by siblings to siblings such as assets or property.

In the rules for grants made by the National Legal Development Agency, the Center for Counseling and Legal Aid, the Ministry of Law and Human Rights of the Republic of Indonesia, it states that everything regarding grant law is contained in Articles 1666 to Article 1693 of the Indonesian Civil Code, or commonly abbreviated as the Civil Code. .

The regulations regarding grants that have been regulated in article 1666 of the Civil Code reads that “Grants are an agreement whereby the grantor, at the time of his life, freely and irrevocably, surrenders something for the purposes of the recipient of the grant who receives the handover. . The law does not recognize other gifts other than grants among people who are still alive.

Well, this article will explain in full the meaning of grants, especially land grants. If you are wanting to know and understand the process of making a grant or receiving a grant in the form of land. The following is an explanation of the grant that will add insight and will be useful in the future.

A. Definition of Grant

As explained above, that a grant is a form of gift from someone who is still alive to another person. Grants can be realized in the form of several types of movable property and several types of immovable property. There are also examples of immovable property that are often encountered, namely property and land.

Apart from being able to give to people, grants can also be given to a social, educational, to religious foundation. The grant is usually intended to give gifts as a form of someone’s support for an institution.

However, many people equate the meaning of gift with inheritance, even though the two have different meanings. The difference between grants and inheritance lies in the person making the gift, inheritance is a gift made by someone who has died. In contrast to grants made by someone who is still alive.

Inheritance is commonly referred to in grant law is a testamentary grant. The will grant itself has been regulated in Article 957 to Article 972 of the Civil Code. Article 957 of the Civil Code reads that “A testamentary grant is a special stipulation, in which the heir gives certain items or items to one or several people, or all items and certain types; for example, all movable or fixed assets, or usufructuary rights over some or all of the goods”.

1. Definition of Grant

In the Big Indonesian Dictionary, a grant means a voluntary gift with the procedure of transferring ownership rights to another person. The meaning of the definition in the KBBI is almost the same as the meaning understood by most people. In addition, grant recipients are no longer obliged to provide compensation to the grantor.

However, the concept of grants that occurs is not as easy as the principle of giving and receiving. There are many forms of giving, from a sizable amount of money to an item of great value. In the applicable civil law rules, grants are required to include evidence. This is intended so that it cannot be sued by a third party.

Giving a grant can be said to be valid and can apply to the various parties involved if the recipient of the grant has confirmed the acceptance using the basis of a notarial deed. This regulation has been regulated in article 1683 jo. In the Civil Law Act or the Civil Code, land grant letters already have a law in accordance with the regulations in article 1666.

2. Explanation of Land Grants

The procedure for implementing a grant for land and buildings is almost the same as for buying and selling. The components that are very necessary in carrying out grants are land and data from the grantor or recipient of the grant. In general, the land data that must be completed is:

a. Original Land and Building Tax for the last 5 years including STTS (proof of payment)
b. Original land certificate
c. Original IMB
d. Proof of payment for electricity, telephone and water bills (if any)
e. If the land has a mortgage burden, it is necessary to attach a mortgage certificate on the land and building and complete a letter of settlement and original royal certificate from the bank.

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In implementing land grants, the procedure must have evidence in the form of a deed from the PPAT. The procedure for giving a grant or receiving a grant will be followed up by making a grant deed signed by the PPAT. Furthermore, the PPAT will register documents regarding the deed of grants related to the regional land office. Finally, a printed notification will be delivered that the deed of permit has been submitted to all parties concerned.

When receiving a land grant, there is a potential for the grant that has been received to be accommodated with a tax object. This is because the recipient of the grant gets land ownership rights for free, so that the acquisition of rights from inheritance is a tax object that is subject to tax.

B. Legal Basis for Land Grant Letters

Land grant letters can be printed because they are regulated by articles 1666 to 1693 regarding grants in the Civil Code. Based on article 1666 of the Civil Code, it shows that a grant can be interpreted as a relationship related to an agreement from someone who makes a grant to hand over an item for free.

According to the regulations, when a grant has been received, there is no provision for the giver to withdraw the grant. It is an interest that belongs to someone who has become the recipient of the delivery of the goods. In accordance with the law, grants will not be recognized other than activities carried out among living people.

1. The Importance of Making a Land Grant Letter

In grant activities, making land grant letters has a very important role. This is because grants generally have a fairly large amount. Therefore, giving land grants to someone needs strong evidence so that there is no potential for a lawsuit against the party receiving it.

The thing that needs to be done to avoid this bad potential is that in making grants, a letter of approval from the heirs of the grantor, such as a biological child, must also be completed. Not only that, in making grants it should be in accordance with the absolute rights of the inheritance of the heirs that have been determined in the law.

According to the grant regulations in the Civil Code, the provisions that need to be considered in implementing grant grants are the conditions used. The following are the terms of the grant that you need to know, including:

1. Grant givers and grant recipients are adults according to law.
2. Implementation of the grant must be carried out using the original notarial deed and kept at the notary.
3. Implementation of grants to someone who is not old enough can be accepted by the person exercising authority as a parent.

2. Grant Legal Basis

Everything about grants has been regulated in article 1666 of the Civil Code or the Civil Code. Therefore, the explanation regarding grants is basically a gift from one person to another for free. However, there are several provisions that allow grants to be withdrawn if the implementation of the grant is from parents to their children.

Grants can be implemented based on article 1682 of the Civil Code, where in that article it is stated that, “No gift except that referred to in Article 1687 can be made without a notarial deed, the original text of which must be kept at the notary and if this is not done then the grant will be invalid”.

When quoting from other sources, the site of the Supreme Court Decision in article 1683 of the Civil Code states that, “No gift shall bind the grantor or cause something before the gift is received in firm words by the person who is given the grant or by his representative who has been authorized by him to receive the grant that has been or will be granted. If the receipt is not made with the deed of grant, then the acceptance can be made with an authentic deed later, the original text of which must be kept by the Notary, provided that this occurs while the grantor is still alive; in this case, for the grantor, the grant is only valid since the receipt of the grant is officially notified to him.

However, in the understanding of article 1687 in the Civil Code, it can be explained that grants that use movable and tangible objects such as letters of credit can be paid in a submissive manner. This means that grants do not need to use a notarial deed and can become valid, provided that the gift made has been taken for granted by the recipient of the grant or someone who can pass it on to the recipient of the grant. As a result, a grant can become valid provided that the recipient has obtained the grant.

3. Benefits of Land Grants

As stated above, the letter of grant has very important benefits because it becomes official evidence or document. Therefore, the making of a letter is usually done by a land deed official or can be abbreviated as PPAT accompanied by witnesses who are in accordance with the applicable requirements.

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The benefits that can be felt by the community are clear provisions regarding someone who has immovable assets so that they can be given to the desired party, for example such as educational, social and educational foundations or can be made to heirs or children.

Implementation of land grants can be used for social purposes such as the construction of schools, houses of worship, to orphanages. The benefits of land grants can certainly have a lot of influence on the grantor. And, the benefits that can be obtained by families such as children or close relatives, namely land grants are more based on asset security.

 

 

Sample grant letter

1. Example of a Land Grant Letter to the Government

GRANT LETTER

The undersigned:
Name: Abdul Salam
Place, date of birth: Semarang, 16 October 1956
NIK: 389xxxxx
Occupation: Entrepreneur
Address: Jalan Makam Pahlawan No. 19, Semarang
Hereinafter referred to as the First Party.

Name: Semarang Village Office
Address: Jendral Sudirman Street No. 7, Central Java
Hereinafter referred to as the Second Party.

On March 21, 2021, the First Party stated that it would grant a land area of ​​750 m² to the Second Party. The land is in the name of Abdul Salam and accompanied by proof of ownership certificate (write the SHM number). The land is located at Jalan Kariyadi 10, Semarang. The following are the boundaries of the land:

  • To the north it is bordered by: SD 12 Semarang
  • To the east it is bordered by: Baitussalam Mosque
  • To the south it is bordered by: Jalan Kariyadi 6
  • To the west it is bordered by: Jalan Kariyadi 8

As long as it is owned by the First Party, the land mentioned has never been in dispute or sued by other parties. After this letter of grant has been signed by the First Party and the Second Party, the land mentioned will fully become the rights of the Second Party. Thus this letter of grant is made without coercion.

Semarang, 15 December 2021

(Abdul Salam) (Semarang Village Office)

Second Party First Party

2. Sample Land Grant Letter for Road

LAND GRANTS

The undersigned below:

Name: Abdul Salam
Place, date of birth: Jakarta, 23 April 1958
NIK: 316xxxxx
Occupation: Civil Servant
Address: Jalan Menteng No. 76
Hereinafter referred to as the First Party.

Name: Rudi Hartono
Place, date of birth: Bogor, March 18 1981
NIK: 316xxxx
Occupation: Private employee
Address: Jalan Menteng No. 56
Hereinafter referred to as the Second Party.

On February 11, 2020, the First Party stated that it would grant a 100m² plot of land to the Second Party for road widening purposes. The land is in the name of Mr. Adam Kuncoro and is accompanied by proof of Freehold Certificate (write the SHM number). The land is located at Jalan Menteng No. 41. The following are the boundaries of the land:

  • To the north it is bordered by: Nurul Hidayah Mosque
  • To the east it is bordered by: Taman Kampung
  • To the south it is bordered by: Jalan Menteng No. 39
  • To the west it is bordered by: Jalan Bandung No. 42

As long as it is owned by the First Party, the land mentioned has never been in dispute or sued by other parties. After this letter of grant has been signed by the First Party and the Second Party, the land mentioned will fully become the rights of the Second Party. Thus this letter of grant is made without coercion.

Jakarta, 23 December 2021

(Rudi Hartono) (Abdul Salam)

Second Party First Party

3. Example of a Land Grant Letter for a Mosque

LAND GRANTS FOR MOSQUES

The undersigned:
Name: Heru Satrio
Place, date of birth: Kudus, 27 September 1988
NIK: 317xxxxx
Occupation: Private Employee
Address: Jalan Jambu No. 29, Jaculo

Hereinafter referred to as the First Party.
Mosque: Al-Firdaus
Address: Jalan Jambu No. 28, Jekulo
hereinafter referred to as the Second Party.

On April 13, 2020, the First Party stated that it would grant a plot of land covering an area of ​​80 m² to the Second Party. The land is in the name of H. Anshori and accompanied by proof of ownership certificate (write the SHM number). The land is located at Jalan Jambu No. 27, Holy. The following are the boundaries of the land:

  • To the north it is bordered by: Al-Firdaus Mosque
  • To the east it is bordered by: Jalan Jambu No. 26, Jaculo
  • To the south it is bordered by: Pos Kamling
  • To the west it is bordered by: Jalan Jambu No.30, Jekulo

As long as it is owned by the First Party, the land mentioned has never been in dispute or sued by other parties. After this letter of grant has been signed by the First Party and the Second Party, the land mentioned will fully become the rights of the Second Party. Thus this letter of grant is made without coercion.

Kudus, 11 November 2021
(Heru Satrio) (Al-Firdaus Mosque)