Get to know the Property Grant Deed

Come on, it’s time you know the property grant deed. There are many things to know before investing property in Indonesia.

Want to accept property from parents or relatives? Don’t rush to be happy. Before the property rights really move, make sure there is an important document called the Grant Deed.

Without this document, giving can be considered invalid and risk of being sued. There are still many who misunderstand the grant, even though this document is not just a formality, but an important legal protector.

In this article, you will understand what a grant deed is, the manufacturing process, and the costs that need to be prepared so that the receipt of property is safe and valid.

Blog Skillife has summarized a number of information from various trusted sources, including news media on line national.

What is the grant and why important?

Grant deed is an official document stating that someone submits ownership of a property such as land or home to other parties without rewards.

Different from the sale and purchase deed, this deed is used when ownership transfer is carried out without financial transactions. In Indonesian law, this is regulated in Article 1666 of the Civil Code.

The important point is that once the transition process is passed through the deed, the property is fully owned by the recipient and cannot be withdrawn by the giver. Herein lies the main power.

Legal provisions that occur legally

Not all grant deeds are considered valid. If only handwritten or just an ordinary letter, then the legal force is weak or not even recognized.

In order to be valid, the grant deed must be made by a notary who is also concurrently as the official of the land deed (PPAT). The process must involve:

• Presence of granting and receiving grants
• Two witnesses during the signing of the document
• Completeness of personal documents from both parties

Only after that, the notary can make a legitimate deed legally.

Don’t forget, tax must be paid first

One of the obstacles that often arises when the arrangement of this document is tax arrears that have not been paid.

Before the process can be continued, the giver and recipient are required to complete the acquisition of land and building rights (BPHTB) and related Income Tax (PPH).

If there is still tax debt on the name of the land or building, the deed cannot be issued. So before taking care of the document, make sure everything is clean and paid off.

How much does the grant deed cost?

The cost of grant deed can vary depending on the property value. On average, the notary will charge a tariff of around 2.5% of the selling value of the Tax Object (NJOP) of the donated property.

For example, if the land to be given has a NJOP of Rp. 200 million, then the cost required is around Rp. 5 million.

That does not include administrative costs or other legalization costs. If you receive a grant from your parents, it is likely to be charged a lighter rate, but there is still a cost that must be paid.

This is why it is important to know in advance the cost of land grants from parent to child, so that it can be prepared from the beginning.

The length of the process of issuing laws

Usually, the process from collecting documents to official grant documents is issued takes about 2-4 weeks.

But if there are obstacles in ownership data or taxation problems, the time can be longer. Therefore, it is important to choose an experienced and responsive notary.

Grant laws can be threatened?

Legally, the grant deed made by a notary is strong and binding. However, in some cases, the heirs of the giver may sue if they feel their rights are violated.

It’s just that a lawsuit like this will usually lose in court if the ownership document is complete, valid, and approved according to legal procedures.

Prepare yourself before receiving a property grant

The grant does sound like a blessing, but without a valid document, it can turn into a conflict. Therefore, it is important to understand this ownership document as a whole, not just a matter of signature, but also the legal process.

If you are receiving a house or land from your family, consult a notary/PPAT immediately. Prepare documents and funds from the beginning so that the process is smooth and free of problems.

The cost of grant deed does feel big, but it is much lighter than the risk of losing property rights. Don’t delay understanding this process, because the property affairs that are underestimated are often expensive.

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