Inherited Land Not Yet Transferred? The Risks Lurking for Heirs

JAKARTA — Many families choose to leave inherited land certificates in the names of parents or deceased family members. As long as no disputes arise, some heirs do not consider the process of transferring the title to be an urgent matter. However, the habit of delaying the update of ownership data has the potential to create various problems in the future, ranging from difficulties in selling land and applying for bank loans to triggering conflicts between heirs.

The Ministry of Agraria and Spatial Planning/National Land Agency (ATR/BPN) has warned the public not to delay the transfer of inherited land titles to ensure legal certainty over family assets. The Head of the Public Relations and Protocol Bureau of the Ministry of ATR/BPN, Shamy Ardian, stated that many people only realise the importance of title transfers when they intend to sell the land, use it as collateral for a bank, or when legal issues arise. According to him, delays in land administration can lead to much more complex problems in the future.

One of the most frequent issues occurs when heirs wish to sell land or use it as credit collateral. Although legally the rights to the land transfer to the heirs upon the owner’s death, the ownership data in the certificate must still be updated through the registration of the transfer of rights. This provision is regulated under Article 42, paragraph (1) of Government Regulation (PP) Number 24 of 1997 concerning Land Registration, which mandates that heirs must register the transfer of rights due to inheritance at the land office. To facilitate this, heirs must submit the land certificate, the death certificate of the deceased, and proof of heirship. If the certificate remains in the name of the deceased owner, transactions generally cannot be processed directly as they must first undergo the inheritance administration stages. Another common issue is disputes between heirs; initially, all family members may agree to leave the certificate in the parents’ names, but complications arise later.