Gradual Construction of Condominium is a condominium construction planned in a unity of a development system on a plot of land which is done in several continuous stages whether in the physical construction or in terms of the duration.
Association of Owner and Tenant of Condominium Unit which will be abbreviated onwards as PPPSRS is a legal entity consisted of the condominium owners or tenants.
This Minister Regulation aims to provide legal certainty in the forming of PPPSRS and ensure the rights and obligation in the governance of PPPSRS.
Condominium Developer which will be referred onwards as Developer is each and every person and/or government that conducts construction on housing and residential.
Gradual Construction of Condominium
Under the Minister of Public Works Regulation No. 23/PRT/M/2018 the construction of condominium that is planned in one construction system on a single plot of land can be done gradually. If the condominium is constructed gradually, then each construction stages of condominium must be completed at the latest 3 years from the planning stage.
Further, each construction stages of condominium shall have common equipment, common facilities and common land that are separated from the other construction stages.
Establishment of Association of Owner and Tenant of Condominium Unit (“P3SRS”) in Gradual Construction of Condominium
The establishment of P3SRS in the condominium that is constructed gradually shall be held on each construction stages of condominium. The establishment of P3SRS shall be made at the latest 1 year from the first handover of condominium unit to the owner in each construction stages.
The P3SRS that has been established in each construction stages shall manage the interest of owners and tenants that is related to the management of common equipment, common facilities and common land. However, if there is a common facility that is used jointly by owners and tenants of all stages of construction stages, then the management of that common facility shall be done by all PPPSRS. The joint management must be made based on cooperation agreement that is made before a notary. The service fees towards the common facility shall be borne by all owners and tenants in all construction stages.
Cooperation between Association of Owner and Tenant of Condominium Unit (P3SRS) and Developer in the Gradual Construction of Condominium
The developer must cooperate with the P3SRS that already established if there is a construction stage of condominium that has not been completed. The cooperation is carried out based on a cooperation agreement in a form of an authentic deed.
The cooperation agreement consists of agreement between the developer and P3SRS in order to:
ensure that the construction will not harm the safety, security, and comfort of owners and tenants;
- Ensure that the management that is conducted by P3SRS will not be disturbed due to the next construction stage;
- Secure the developer in the next stage of construction; and
- Stipulate management obligations of common facility between P3SRS and developer if there is a planned common facility that will be utilized is planned to be used by all owners and tenants in all construction stages of condominium.