Property transactions, especially buying houses in Indonesia, require a legalization process that often involves public officials, such as notaries public.
A notary is a public official authorized to create authentic deeds, and their responsibilities are governed by Law Number 2 of 2014. They play a crucial role in drafting various agreements and documents, ranging from sale and purchase agreements to land ownership certificates.
So, how does the house sale and purchase process work with a notary? What are the rules to ensure the transaction is legally sound? Our Legal Advisor Ricko Astono will break down notary services in Indonesia into a comprehensive explanation to help comply with the property regulations in Indonesia.
Here are some of the rules that must be followed to ensure the legality of the home buying process:
- The sales agreement must be in writing and contain signatures from both the buyer and seller.
- The sales agreement must be notarized by a notary public.
- The property deed must be signed by the buyer, seller, and two witnesses.
- The property deed must be registered with the Land Registry.
Stages of Home Buying through a Notary
Document Authentication
Before initiating the home buying process, the applicant must ensure that the land and property in question are free from disputes or seizures. Therefore, the notary is obligated to examine and certify documents such as land certificates by a Land Deed Officer (Pejabat Akta Tanah) at the land office. Despite its seemingly straightforward nature, this step is crucial to validate the legality of the home transaction.
Tax Inspection and Deed Preparation
The next stage involves inspecting the proof of payment for Land and Building Tax (Pajak Bumi dan Bangunan or PBB). The property owner must provide evidence of tax payment to the buyer. The notary will then scrutinize the Payment Receipt for Land and Building Tax to ensure there are no outstanding payments on the property. Subsequently, the seller must settle income tax (PPh), and the buyer must pay the Acquisition Duty on Land and Building Rights (Bea Perolehan Hak atas Tanah dan Bangunan or BPHTB). This is followed by the preparation of the Deed of Sale and Purchase (Akta Jual Beli), a process conducted in the presence of the Land Deed Officer.
As is known, the Deed of Sale and Purchase is an authentic document serving as legal proof of the property transfer. Its creation requires various documents from both the seller and the buyer.
Requirements for Seller’s Documents:
- Photocopy of ID card (KTP)
- Photocopy of Tax Identification Number (NPWP)
- Photocopy of Marriage Certificate and Family Card
- Original Certificate of Land Ownership and Land Title (SHM)
- Notary’s Deed
- Original Land and Building Tax Payment Receipt (for the last 5 years)
Requirements for Buyer’s Documents:
- Photocopy of ID card (KTP)
- Photocopy of Tax Identification Number (NPWP)
- Photocopy of Marriage Certificate and Family Card
Once all requirements are met, a visit to the Land Deed Office corresponding to the property location for document inspection can be scheduled. If the land certificate is verified and issued after the signing of the Deed of Sale and Purchase can proceed with the presence of two witnesses: the notary and the Land Deed Officer.
Ownership Transfer Process
The final stage involves the Ownership Transfer Process, where the Land Deed Officer will request the buyer to prepare a letter requesting the transfer of ownership. This process is necessary for buyers of new homes, existing homes, or those taking over properties. For this process, a request letter from the National Land Agency (BPN) is required.
The Land Deed Officer will hand over the Deed of Sale and Purchase and essential documents such as:
- Ownership Transfer Request
- Land Certificate
- Seller and Buyer Documents
- Proof of Land and Building Tax Payment
- Acquisition Duty
These documents will be submitted to the land office, and the buyer will receive proof of acceptance and a new ownership transfer in the land book and certificate columns.
Typically, the time required for the ownership transfer process is between 14 days to 3 months.
Notary Fees in the Home Buying Process
After discussing the various processes and rules of home buying through a notary, it’s time to understand the associated costs. Here’s a breakdown:
Certificate Check Fee
As previously explained, the certificate check aims to ensure that the property to be purchased is not located on disputed land. Usually conducted at the National Land Agency (BPN), the notary will charge a fee starting from Rp100,000, depending on the region.
Income Tax (PPh) Fee
Income tax, amounting to 5% of the transaction, must be paid before the signing of the Deed of Sale and Purchase.
Tax Validation Fee
Value-added tax (PPN) and luxury goods sales tax on buyers (PPNBM) is essential regulations in home buying transactions. PPN is imposed on properties with a value above Rp36 million. The cost for notary services in handling tax validation may vary, so make sure to ask your trusted legal partner to explain this fee.
Deed of Sale and Purchase (AJB) Fee
AJB is a document declaring the transfer of land rights from the old owner to the new one. Generally, both parties bear the AJB cost. The process of creating AJB takes about 1–3 months, involving procedures such as certificate inspection, land tax payment, income tax settlement, acquisition duty payment, and more.
Ownership Transfer Fee (BBN)
BBN must be paid during the home buying process. If purchasing an existing home, the buyer is required to transfer the property certificate from the seller to themselves. The BBN amount varies, with an average cost of around 2% of the transaction value and a processing time of 30 days.
SKHMT Fee
The SKHMT fee, or Power of Attorney to Grant Mortgage Rights, typically amounts to Rp1.2 million for homes purchased through credit or mortgages.
Deed of Granting Mortgage Rights (APHT)
For buyers engaging in mortgage or KPR services, there is also a fee stated prior to the agreement to issue the Deed of Granting Mortgage Rights. Consult to your trusted mortgage advisor to understand more about the Deed of Granting Mortgage Rights.
All the mentioned fees are necessary when utilizing notarial services in the home buying process. However, it’s important to note that these costs may vary depending on the specific notary.
FAQs about Notary Services in Jakarta
Q: Why is a notary necessary in a property transaction?
A: A notary is essential to ensure the legal validity and authenticity of documents in a property transaction. They play a vital role in drafting agreements, verifying documents, and overseeing the signing of crucial deeds.
Q: What documents are required for the Transfer of Name process?
A: The Transfer of Name process requires a request letter from the National Land Agency (BPN), along with the Deed of Sale and Purchase (AJB), seller and buyer documents, proof of Land and Building Tax payment, and BPHTB.
Q: How long does the name transfer process typically take?
A: The name transfer process usually takes between 14 days to 3 months, depending on various factors such as document verification and administrative procedures.
Why Choose LetsMoveIndonesia for a Trustworthy Legal Notary in Jakarta
Choosing LetsMoveIndonesia for your notarial needs in Jakarta offers several advantages. As the Head Legal Advisor, Ricko Astono and the team at LetsMoveIndonesia bring a wealth of expertise and experience to ensure a smooth and legally sound property transaction. With a commitment to transparency and client satisfaction, LetsMoveIndonesia stands out as a reliable partner for all your notarial services in Jakarta.
About Ricko Astono
Ricko Astono is an accomplished professional and Head of Legal and Tax Services at LetsMoveIndonesia, renowned for his expertise in company registration and legal services in Indonesia. With a profound understanding of Indonesian corporate laws, Ricko provides invaluable guidance to businesses aiming to establish a presence in the country. He streamlines registration processes, ensures compliance, and offers tailored solutions, leveraging his analytical skills, attention to detail, and clear communication. With experience working with diverse clients, Ricko’s vast network and up-to-date legal knowledge enable him to provide relevant advice and empower businesses in the Indonesian market. Ricko Astono is a committed partner who adds tremendous value to LetsMoveIndonesia and its clients.
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