Get to know APHT (Deed of Mortgage Rights)

Before investing in property, it’s time for you to get to know APHT (Deed of Mortgage Rights). Check out the discussion.

For those of you who are planning to buy a house with a installment system through a bank, you must be familiar with the term KPR (Home Ownership Credit).

However, did you know that there are important documents that accompany this credit process and are mandatory, namely APHT (Deed of Mortgage Rights).

Without this document, the loan could not be approved by the bank or even did not have a clear legal force.

APHT is part of a series of legality that ensures that the property you buy is a legal guarantee for banks until loans are paid off.

This article will discuss thoroughly what APHT is, what is the difference with SKMHT, how the submission process is, and how much it costs.

The SCIREMIFE blog presents a summary of information from various trusted sources including a number of news pages on line.

Understanding APHT

APHT (Deed of Mortgage Rights) is an official document issued by PPAT (Land Deed Making Officer).

This document sAs a form of binding guarantees of land or buildings used as loan collateral.

This deed is a strong legal basis for creditors to execute guarantees if at any time the debtor fails to pay off loans.

This document was made after you signed a credit agreement and a debt recognition letter. Later, the deed will be registered with the Land Office and issued a Mortgage Rights Certificate on behalf of the bank as a creditor.

In this case, the house you buy is not yet completely free from legal burden to debt.

APHT and SKMHT differences

When applying for a loan, maybe you also hear the term SKMHT. Although similar, both have different functions.

SKMHT or Power of Attorney charges Underwriting Rights are used temporarily if the house certificate is not in your name, for example because it is still the process of returning the name of the developer.

If, APHT is the final form of binding guarantees that occur after all documents are complete and valid.

While SKMHT is only temporary, and must be followed up into APHT within a certain period of time.

Conditions make Aphth

In order for the making of this action to run smoothly, you need to prepare some important documents, including:

• Original land certificate
• KTP (Identity Card) The parties (Debtor, Certificate Owner if different, and creditors)
• IMB (for buildings)
• NPWP (Taxpayer Identification Number)
• Credit agreement from the bank
• Debt Recognition Letter

In addition to physical documents, there are also legal provisions that must be met, one of which is the listed phrase “for the sake of justice based on the Almighty God” in the deed.

This gives the strength of direct execution to the bank in the event of a default.

APHT submission process

The following is a common plot in submitting this deed:

1. Signing of a credit agreement. This is an official agreement between you and the bank, which is the basis for all the next processes.
2. Making debt recognition letters. This document states that you recognize the amount of loan and are willing to pay it off.
3. Making Deed by PPAT. All parties involved in property ownership must attend and sign this deed.
4. Registration to the Land Office. After this document is completed, the process is continued with the registration of Underwriting Rights for the issuance of certificates on behalf of the bank.

In this process, it is important to remember that all stages must be carried out in a specified deadline, especially if you use SKMHT first. If it’s too long, SKMHT can expire and must be repeated.

APHT fee

Every legal process has a cost, including this deed. In general, you will be charged for:

• Notary or PPAT services
• Registration to BPN (National Land Agency)
• Tax validation
• Related document administration fees

The estimated total APHT cost ranges from 0.25% -1.25% of the total loan value. These costs can differ depending on the value of collateral, property location, and policies of each notary office.

For example, for a loan of Rp. 500 million, the deed can range from Rp1.25 million to Rp6 million.

Make sure you ask about this estimated cost from the start in order to prepare a reserve fund. If you want to know in more detail, you can also explore “the cost of making home mortgage rights” as an additional reference.

Why is APHT so important?

Many people think that after submitting a mortgage to the bank and occupying the house, all matters have been completed.

In fact, legally, the house is still bound as guaranteed until all debt is paid off. This is where the role of APHT.

With the presence of the deed, the position of the bank as a protected loan. But at the same time, you as a borrower also benefit because the status of ownership and legality of property becomes clearer.

If you intend to resell the house later, the process will also be much smoother because there is no hidden legal burden.

Having a house through a mortgage scheme is not only about paying installments on time, but also ensures that all legal processes are neat. This deed is one important part of the process.

By understanding it thoroughly, you can make financial decisions more confidently.

If you want to further prepare a dream home purchase, do not just focus on mortgage installments, interest rates, or time period (tenor).

Also make sure the legality is safe because the sense of calm when living at home starts from the legal certainty behind it.

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