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Mortgage law in Praya, Indonesia primarily falls under the broader Indonesian civil and property laws. A mortgage, also known as 'Hak Tanggungan', is a security interest provided over specific types of assets concerning repayment of debt. A mortgage over land must be registered in the public register of land in order to be legally valid. While mortgages are common, understanding legal intricacies and your rights as a lender or borrower can be challenging without professional help.
Common situations where you may require legal assistance in the field of mortgage in Praya includes creating a mortgage agreement, resolving disputes relating to mortgage contracts, or understanding your rights and obligations under the mortgage agreement. A lawyer can also assist you if you're a borrower facing foreclosure. Additionally, a legal professional can help you understand the implications of many complex terms involved in the mortgage process.
Local laws in Praya related to mortgage primarily revolve around the Law No. 4 of 1996 concerning Mortgage of Land along with Objects related to Land. This provides specifics on the procedure, rights, and obligations of both the lender and borrower, and the circumstances under which a foreclosure can take place. It also covers rights of third parties. A mortgage must be established by a Deed of Mortgage and registered in the Mortgage Register kept in the local land office (Kantor Pertannah) to be legally valid.
The mortgage is established by the execution of a Deed of Mortgage before a notary by both parties and then registered in the Mortgage Register.
Only specific types of assets (mainly land and permanent buildings on land) can have a mortgage established over them.
If a borrower cannot make repayments, the lender can initiate a foreclosure on the property.
A property under mortgage can still be sold, but the buyer will assume the mortgage unless it is paid off.
Third parties can have certain rights depending on the specifics of the agreement, such as the right to receive compensation from the foreclosure sale of the property.
A mortgage contract can be modified with the agreement of both parties and must be conducted through a notarial deed and reported to the Land Office.
The Deed of Mortgage must include details such as the amount of loan, interest rate, repayment schedule, and the specifics and value of the mortgaged property.
Foreigners can legally obtain a mortgage in Indonesia under specific conditions, but it is recommended to seek professional legal advice for this.
Yes, a notary is needed to execute a Deed of Mortgage which is a requisite for a valid mortgage.
In case of default by the borrower, a public auction will be carried out at the local land office to sell the property, and the proceeds will be used to repay the debt to the lender.
Potential resources can be the local Land Registration Office (Kantor Pertanahan), the Indonesian Civil Code (Kitab Undang-Undang Hukum Perdata), and Law No. 4 of 1996 on Mortgage of Land along with Objects related to Land. Professional bodies like the Indonesian Advocates Association (Peradi) might also be helpful.
If you need legal assistance in the field of the mortgage, you can take the following steps: Seek professional legal advice from a lawyer specializing in mortgage and property law. Ensure the professional understands local laws and practices in Praya specifically. Prepare necessary documents such as your property deeds, identification, and any previously executed contracts related to the property.
