About Mortgage Law in Praya, Indonesia
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.
Why You May Need a Lawyer
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 Overview
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.
Frequently Asked Questions
1. What is the procedure to establish a mortgage?
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.
2. Can I get a mortgage on all property types?
Only specific types of assets (mainly land and permanent buildings on land) can have a mortgage established over them.
3. What happens if I cannot make my mortgage payments?
If a borrower cannot make repayments, the lender can initiate a foreclosure on the property.
4. Can the property still be sold while under mortgage?
A property under mortgage can still be sold, but the buyer will assume the mortgage unless it is paid off.
5. What are the rights of third parties in a mortgage agreement?
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.
6. Can a mortgage contract be modified?
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.
7. What are the necessary details in a Deed of Mortgage?
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.
8. Can a foreigner obtain a mortgage in Praya?
Foreigners can legally obtain a mortgage in Indonesia under specific conditions, but it is recommended to seek professional legal advice for this.
9. Is a notary necessary to create a mortgage?
Yes, a notary is needed to execute a Deed of Mortgage which is a requisite for a valid mortgage.
10. What happens in a foreclosure?
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.
Additional Resources
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.
Next Steps
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.
Lawzana helps you find the best lawyers and law firms in Praya through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Mortgage, experience, and client feedback.
Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters.
Get a quote from top-rated law firms in Praya, Indonesia - quickly, securely, and without unnecessary hassle.
Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.
We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please
contact us, and we will review and update it where appropriate.
