Based on Government Regulation Number 24 of 1997 on Registration of Land, the transfer of right of land can be conducted by some means which are (i) sale and purchase (jual-beli), (ii) inheritance (warisan), (iii) testament (wasiat), (iv) grant (hibah), and (v) auction (lelang). The procedure for the registration of transfer of right of land as the result of auction is different with the other means. Auction means every public sale of goods by verbal and/or written to the highest bidder
Transfer of Right of Land through Auction
By its characteristic, auction can be divided into two types, i.e. (i) execution auction, and (ii) non-execution auction. Execution auction means an auction that is related to court decision, mortgage rights (hak tanggungan), tax seizure (sita pajak), seizure held by District Attorney (Kejaksaan) or Investigator (Penyidik), and seizure held by Affairs Committee of State Receivable (Panitia Urusan Piutang Negara). Auction of non-execution means an auction of the assets owned by State Central Government Agency (Instansi Pemerintahan Pusat) or Regional Government Agency (Instansi Pemerintahan Daerah), State Owned Enterprise (Badan Usaha Milik Negara) or Regional Owned Enterprise (Badan Usaha Milik Daerah), and voluntary auction that is related to the right of land, or right to own of condominium unit that owned by individual or legal entity.
In practice, on the execution auction there may be a problem in relation to the refusal from the executee to submit the original certificate of right of land which will be auctioned. However, that refusal will not stop the auction. In the event that certificate has not been delivered to the auction buyer, then the evidence for the registration of land is the statement letter (surat keterangan) from the Head of Auction Office (Kepala Kantor Lelang), elaborating the reason why the certificate cannot be given to the auction buyer. If the land has not been registered yet, the evidence for the registration of land is the statement letter from Village Head/Sub-District, stating on the control of land and statement letter about the land.
Auction Procedure and Registration of Land through Auction
The transfer of rights of land as the result of auction can only be registered to the National Land Agency if it is evidenced by the Minutes of Auction (Risalah Lelang). Within 7 (seven) days before the auction, the Head of Auction Office (Kepala Kantor Lelang) has the obligation to request the information on the physical data, and juridical data (data yuridis) as mentioned in the Map of Registration (Peta Pendaftaran), and list of land (daftar tanah). Within 5 (five) days after receiving the application, the National Land Agency will provide the land information to avoid the unclear public auction, and to make the Auction Official (Pejabat Lelang) has the basis to conduct the land auction.
The registration application of transfer of right of land acquired through the auction can be submitted by the auction buyer to the Head of Land Office by attaching the following documents:
- Minutes of Auction (Risalah Lelang).
- Certificate of right of land or condominium, if the right of land that will be auctioned has been registered.
- Statement Letter from the Head of Auction Office (Kepala Kantor Lelang) elaborating the reason why the certificate cannot be given to the auction buyer.
- If the land has not been registered yet, the auction buyer shall attach (i) deed of title, (surat bukti hak) such as written evidences related to the right of land, witness statement, and/or statement letter in relation to the land ownership which will be assessed by Committee of Adjudication (Panitia Adjudikasi)/Head of Land Office (Kepala Kantor Tanah), or Statement Letter from the Head of Village/Sub-District (Kepala Desa/Kecamatan) on right of land, and (ii) statement letter stating the land has not been certificated from the Land Office.
- Identity of auction buyer.
- The receipt of payment.
- Receipt of Acquisition Duty of Right of Land and Building (Bea Perolehan Hak atas Tanah dan Bangunan).
- Receipt of Income Tax (Pajak Penghasilan).
By registering the right of land through the Land Office, the auction buyer will be registered as the owner of land which has been auctioned previously.