South Tangerang Case Serves as a Lesson: The Dangers of Buying a House on Instalments Without a Deed of Sale

The risk of buying a house on instalments without a Deed of Sale (AJB) has come under the spotlight again following a recent dispute in South Tangerang. The dispute occurred on Murjaya Street, West Jurang Mangu, Pondok Aren Subdistrict, South Tangerang City. One of the house occupants, Raffa Azman (21), stated that his family bought the house for Rp 1 billion through a verbal agreement without an AJB with the previous owner due to their close relationship. He mentioned that the only proof his family has is payment receipts. “The agreement was for a purchase price of Rp 1 billion verbally because we felt very close,” Raffa said when met by Kompas.com on Tuesday (21/4/2026). Payments were made in instalments from 2019 to 2021. Raffa’s family has paid around Rp 840 million, including a down payment of Rp 200 million. They were even asked for an additional Rp 60 million on the grounds of processing the certificate. However, the certificate was never processed. The conflict peaked in 2023 when the seller sent a summons and instead considered the money already paid as house rental costs. “The content of the summons shocked us because the money we had been paying in instalments was considered as rental fees of Rp 50 million per year,” Raffa said. The dispute then led to forced eviction and the sealing of the house access. The case is now under police investigation. An AJB is only valid if made by a Land Deed Official (PPAT). This provision is regulated in Article 37 paragraph (1) of Government Regulation No. 24 of 1997 on Land Registration. Without an AJB, the transaction is considered legally incomplete. This means that even if the buyer has paid, ownership has not legally transferred. In practice, the AJB serves as the basis for the certificate name change process at the National Land Agency (BPN). Without this document, the buyer lacks a strong legal foundation.