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Free Guide to Hiring a Real Estate Lawyer
Conveyancing in Medan, Indonesia, refers to the legal process of transferring ownership rights of real estate from the seller to the buyer. This process includes not only the legal transfer of property but also ensuring compliance with relevant regulations, payment of necessary taxes, and the registration of ownership at the National Land Agency (Badan Pertanahan Nasional or BPN). Conveyancing procedures in Medan are governed by Indonesian national laws and local government regulations, with unique local practices due to Medan's status as a major urban center in North Sumatra.
There are several situations where engaging a lawyer or legal advisor experienced in conveyancing is highly recommended in Medan. Some common scenarios include:
Legal professionals can help you identify and avoid potential risks, while expediting the often complex and time-consuming documentation process.
Conveyancing in Medan is subject to both national legislation and region-specific regulations. Key legal sources include the Indonesian Agrarian Law (Undang-Undang Pokok Agraria), the Housing and Settlement Law, and regulations set by the National Land Agency (BPN). Only authorized officials such as a Land Deed Official (Pejabat Pembuat Akta Tanah or PPAT) are permitted to prepare land sale and purchase deeds. Property transactions generally require a due diligence process to verify land certificates, boundary conditions, and the payment of local taxes such as BPHTB (Bea Perolehan Hak atas Tanah dan Bangunan or Land and Building Rights Acquisition Duty).
Special attention must be paid to:
A PPAT is a notary appointed by the government to carry out land deed and property transaction documentation. They ensure all processes comply with Indonesian law and file the necessary documents with the National Land Agency.
Generally, you will need valid identification, proof of marital status, tax number (NPWP), original land certificates, the latest land tax receipts, and sale and purchase agreements. Additional documents may be required depending on the type of property and parties involved.
Foreigners are prohibited from owning freehold land (Hak Milik) in Indonesia. However, they may acquire certain usage rights, such as Hak Pakai, under specific conditions and government approval.
Both buyer and seller have tax obligations. The buyer pays the Land and Building Rights Acquisition Duty (BPHTB), while the seller pays income tax resulting from the sale (PPh). Notary, PPAT, and registration fees are generally shared or negotiated between both parties.
Due diligence involves verifying the authenticity of land certificates, ensuring the property is not subject to disputes or mortgages, confirming zoning and usage permits, and making sure all taxes are up-to-date.
Typically, the entire process can take from a few weeks up to two months, depending on the completeness of documents, verification at the BPN, and the absence or presence of legal disputes.
Risks include fake or disputed land certificates, encumbrances such as mortgages, unregistered previous sales, boundary issues, and failure to pay mandatory taxes on time.
While not mandatory, using a reputable real estate agent can help in property searches and negotiations but does not replace legal due diligence and documentation which must be handled by a PPAT or lawyer.
Inheritance is governed by a combination of Indonesian inheritance law and customary law. Legal heirs need to secure proof of right and have the property formally transferred at the BPN, with the assistance of a lawyer or notary.
Disputes may be settled through negotiation, mediation, or legal proceedings. Having comprehensive documentation and consultation with a legal professional helps mitigate and resolve disputes efficiently.
For those seeking further information or assistance on conveyancing in Medan, the following resources can be helpful:
If you need further assistance or want to proceed with a property transaction in Medan, consider taking the following actions:
Thorough preparation and professional legal guidance can provide peace of mind and help ensure a secure property transaction process in Medan, Indonesia.
