The Legal Implications for Auction Buyers in Voluntary Auctions Based on a Sale and Purchase Binding Agreement That Has Not Yet Been Converted into a Deed of Sale

Dyandra Alvionietta; Shinta Hadiyantina; Rino Arief Rachman

doi:10.55927/mudima.v5i11.710

Authors

Dyandra Alvionietta Brawijaya University
Shinta Hadiyantina Brawijaya University
Rino Arief Rachman Brawijaya University

DOI:

https://doi.org/10.55927/mudima.v5i11.710

Keywords:

Voluntary Auction, Auction Buyer, Sale and Purchase Binding Agreement, Legal Certainty, Land Rights

Abstract

Public demand for land ownership continues to increase, including through voluntary auction mechanisms. In legal practice, it is often found that land auctions are carried out based on a Sale and Purchase Binding Agreement (PPJB) that has not yet been converted into a Deed of Sale, creating complex legal issues for auction buyers. This uncertainty frequently arises due to the absence of formal requirements, such as lawful land rights and registered ownership at the land office. This condition potentially opens opportunities for future legal disputes. Under Article 1320 of the Indonesian Civil Code, a PPJB is a legally valid agreement under civil law; however, it does not transfer land rights and therefore cannot serve as a lawful basis for voluntary auctions. Furthermore, Article 37 paragraph (1) of Government Regulation No. 24/1997 stipulates that the transfer of land rights must be proven by a deed executed before a Land Deed Official (PPAT), while Article 1 paragraph (11) of Minister of Finance Regulation No. 122/2023 requires that auction implementation be supported by formal legality of both subject and object of the auction. A PPJB only creates an obligatory legal relationship and does not establish full ownership. The core issue lies in the normative inconsistency between the status of PPJB as a preliminary agreement and the legal requirements for voluntary auctions, which demand valid rights from the seller, resulting in legal uncertainty for auction buyers. This research adopts a normative juridical method with statutory and conceptual approaches. Legal materials include primary, secondary, and tertiary sources from PDIH Faculty of Law Universitas Brawijaya, central library, Malang city library, and online databases. The analysis is conducted descriptively, interpretatively, systematically, and evaluatively.

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