Indonesian Political, Business & Finance News

Many Misunderstand: AJB is Not Valid Proof of Land Ownership

| | Source: KOMPAS Translated from Indonesian | Legal
Many Misunderstand: AJB is Not Valid Proof of Land Ownership
Image: KOMPAS

KOMPAS.com - Many people still regard the Deed of Sale and Purchase (AJB) as valid proof of ownership of land or a house. However, this perception is not entirely accurate. The AJB is indeed an important document in property transactions, but it is not the highest form of proof of ownership in the eyes of the law. This mistaken understanding often causes problems, particularly in cases of land disputes or the process of transferring certificate names. Many people assume that the AJB is proof that someone has bought the land, leading them to believe that ownership has fully transferred. Another inaccurate assumption is that the AJB appears formal and is made by a Land Deed Official (PPAT), so it is considered equivalent to a certificate. So, is the AJB proof of land ownership? Legal practitioner Adyanisa Septya Yuslandari, S.H., M.Kn, explains that the AJB is indeed an official document, serving as evidence of the transfer of land or building rights from the previous owner (seller) to the new owner (buyer). Although it is an official document for the transfer of property assets such as land or buildings, the AJB is not proof of land ownership. The valid and strongest proof of land ownership in Indonesia is the Land Certificate issued by the National Land Agency (BPN), such as the Certificate of Ownership (SHM), Right to Build (HGB), or Right to Cultivate (HGU). These certificates have strong legal force because they are officially registered in the national land administration system. In simpler terms, the AJB is an official document that acts as a legal bridge ensuring that property ownership transfers legally from one party to another. According to Adyanisa, without the signature of the PPAT, the AJB is considered invalid and cannot be used for transferring certificate names. β€œThe AJB is the primary requirement for transferring the certificate name from the seller to the buyer at the Land Office (BPN),” Adyanisa stated. After the AJB is signed, the buyer should immediately process the certificate name transfer at the BPN. This process aims to officially change the name from the previous owner to the new owner. Without this process, legally, the name on the certificate is still considered the valid owner.

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