Indonesian Political, Business & Finance News

Is It Mandatory to Transfer the Title Deed of Inherited Land from a Deceased Parent?

| | Source: KOMPAS Translated from Indonesian | Legal
Is It Mandatory to Transfer the Title Deed of Inherited Land from a Deceased Parent?
Image: KOMPAS

JAKARTA — The death of a parent often leaves behind not only grief but also a number of administrative matters that are frequently postponed, including the issue of land title certificates that remain in the name of the deceased.

Many families consider title transfer to be non-urgent as long as the land remains under the control of the heirs and is not sold. However, there is concern that an outdated certificate status could trigger legal problems in the future.

Regarding the procedure for transferring the title deed of inherited land holding Certificates of Ownership (SHM), Building Use Rights (HGB), and Usage Rights (HP), the provisions are contained in the Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (Permen ATR/Kepala BPN Number 16 of 2021 concerning the Third Amendment to Permen ATR/Kepala BPN Number 3 of 1997 concerning the Implementing Provisions of Government Regulation (PP) Number 24 of 1997 concerning Land Registration.

From a legal perspective, when a person dies, all of their property, including land, passes to their heirs. This is confirmed in Article 833 of the Civil Code (KUHPerdata), which states that heirs automatically acquire ownership rights over all property left by the deceased.

This means that although the certificate remains in the name of the deceased parent, the material right to the land has already become the property of the heirs.

Although the transfer of rights occurs by operation of law, the change in ownership data must still be registered in the land administration system. This is regulated in Article 42 of Government Regulation Number 24 of 1997 concerning Land Registration, which stipulates that the transfer of rights by inheritance must be registered by the heirs.

The implementing provisions in Permen ATR/Kepala BPN Number 3 of 1997 require documents such as the land certificate, death certificate, and a statement of heirship.

Therefore, title transfer is not merely a formality but an essential part of administrative order to align the legal data with the actual situation.

Although regulations do not set a specific time limit for completing the title transfer following inheritance, delaying the process can create various obstacles, including:

Since inherited land becomes common property before division, the title transfer process must be carried out by all heirs or by one person who has been granted power of attorney by all of them.

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