Posts Tagged Condominium
The Legal Aspect and The Rules of The Right to Build
Background
Nowadays, there are various kind of companies established in Indonesia. In term of construction, these companies require a building located on a land. Therefore, according to Law Number 5 of 1960 on the Principle Provisions of Agrarian, there are several rights over land. One of these rights over land is the right to build which can be defined as the right to establish and own a building on a land. The Government Regulation Number 40 of 1996 develops and improves this right to build. The right to build can be given or imposed on state land, land submitted to the right of management, and land submitted to the right of ownership. The right to build can also be used as collateral for loans pledged with mortgage rights.
Allocation of Right to Build
According to the Article 19 of the Government Regulation Number 40 of 1996 describes that right to build is given to Indonesian citizen and legal entities established under Indonesian law and domiciled in Indonesia. The right to build isn’t given to foreigners and foreign entities, so according to article 39 of the Government Regulation Number 40 of 1996 for foreigners and foreign entities, they only have the right to use. The right to build can be granted for a period of 30 years and can be extended for another 20 years. The right to build is given by a decision of the Minister or by an officer appointed upon the recommendation of the management right holders, and have been registered in the book of land in the land office.
Incoming search terms:
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Condominium on the Land with Right to Build over the Land with Right of Management
Posted by admin in Building, Property Law, Right to Manage on March 22, 2011
Background
Article 7 paragraph (1) and (2) of Law Number 16 of 1985 on Condominium, the developer (the “Developer”) may build a condominium over the land with Right of Management (Hak Pengelolaan) (“HPL”). HPL is a right to control, given by the state which the implementation is delegated to its holder. Rights of land that may be granted over the HPL land are Right to Build (Hak Guna Bangunan) (“HGB”) and Right of Use (Hak Pakai) (“HP”). The Developer is obligated to complete the HGB or HP status of the land prior to the initial offer of any property over the land, in accordance with the prevailing laws and regulation. Therefore, the Developer must be aware of the procedure of the obtaining of such rights and other requirements related to HGB and HP over HPL land, which is set out in the Government Regulation Number 40 of 1996 (“GR 40/1996”) and State Minister of Agrarian/Chief of National Land Agency Regulation Number 9 of 1999 on Procedure of the Granting of Rights of Land and Revocation of Right of State Land and Right of Management (“Regulation 9/1999”). Read the rest of this entry »
Incoming search terms:
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Legal Aspects of Required Licenses for Development of Condominium
Posted by admin in Strata Title on October 29, 2010
The interest to live in the condominium tends to increase particularly to people who live in the big cities. According to Article 7 Law Number 16 Year 1985 on Condominium, it is stipulated that the condominium can only be constructed over land of Right to Own (Hak Milik), Right to Build (Hak Guna Bangunan), Right to Use (Hak Pakai) on State Land or Right to Manage (Hak Pengelolaan). In the event the developer is formed as business entity in the form of Limited Liability Company, the possible land title for this legal entity is the Right to Build. According to Decree of State Minister for Public Housing Affairs Number 11/KPTS/1994 on the Guidance on Conditional Sale and Purchase of Condominium (Pedoman Pengikatan Jual Beli Satuan Rumah Susun) states the developer shall obtain the following licenses:
- Principle License, means the license which must be owned by a person or legal entity that will utilize the space for large scale business;
- Location Permit from Regency or Municipal Land Office, for DKI Jakarta known as License of Land Appointment and Utilization (Surat Izin Penunjukkan dan Penggunaan Tanah / SIPPT). This license is given to a company in order to obtain the land for investment which is also valid as the license in relation to transfer of right, and to utilize the land for investment. This license is issued by the competent authorities for the land utilization in main route or for the land utilization of more than five thousand (5,000) m2. The developer has to obtain SIPPT prior to conducting the building construction;
- Building Construction Permit, means the license to construct. The Developer is responsible to obtain this license from the competent authorities. If the building does not have the building construction permit, it will be categorized as illegal building and the competent authorities have the right to seal and demolish it.
After the developer completes the construction process, there are several steps that must be passed by the developer before the Certificate of Right to Own on Condominium (Sertifikat Hak Milik atas Satuan Rumah Susun) unit is issued: Read the rest of this entry »
Rights and Obligation of Owner and Tenant in a Condominium or Strata Title Unit
Posted by admin in Strata Title on October 22, 2009
Condominium is a multistory building for residential purpose, which every unit of it can be owned separately. As a residential building that can be owned separately, tenants of condominium have boundaries in making use of spaces and facilities inside of condominium. In a condominium there are common equipment, common facility, and common land. Those things are shared rights of a condominium which cannot be owned individually because they are one functional unit of condominium that cannot be separated.
Owner and/or tenant of a strata title unit has rights and obligations that are regulated by Government Regulation No. 4 of 1988 on Condominium (the “GR No. 4 of 1988”). Some of the regulations are mentioned below.
Article 61 GR No. 4 of 1988,
Paragraph (1)
Every tenant has the right to:
- make use of condominium and its environment including common equipment, common facility, and common land safely and orderly;
- to get protection as stated in its Article of Association and Bylaws;
- to choose and be appointed as the management of Tenant Association.
Paragraph (2)
Every tenant has the obligation to:
- obey and execute the regulation in a condominium and its environment in accordance with its Article of Association and Bylaws;
- pay the contribution for management and fire insurance premium;
- take care of the condominium and its environment including the common equipment, common facility, and common land.
Paragraph (3)
Every tenant is prohibited to:
- act or do something which can endanger the security, the order, and the safety of other tenants, building and its environment;
- modify the shape and/or adding building parts outside their strata title unit without the permission of the Tenant Association.
Other right which is not regulated in the paragraph mentioned above is that tenant who is also a member of Tenant Association has the right to vote. Tenant can use their right to vote in a General Meeting of the Tenant Association.
The right to vote consists of 3 (three) categories, as follows:
1. Residential Vote (Hak Suara Penghunian)
This is the right of member of Tenant Association to vote in order to determine issues on condominium’s order, the use of facility, and the obligation to pay contribution for management and fire insurance premium for shared rights such as common equipment, common facility and common land. Every owner of strata title unit can only cast one vote.
2. Management Vote (Hak Suara Pengelolaan)
This is the right of member of Tenant Association to vote in order to determine issues on maintenance, renovation, and the development of environment infrastucture, including social facilities, common equipment, common facility, and common land. Management Vote is counted according to its proportional comparative value from every strata title unit.
3. Ownership Vote (Hak Suara Pemilikan)
This is the right of member of Tenant Association to vote in order to determine issues on the relationship between tenant, the appointment of management of Tenant Association, and expenses of strata title unit. Ownership Vote is counted according to its proportional comparative value from every strata title unit.
According to the explanation above, every owner and/or tenant of strata title unit has rights and obligations which have been regulated by law. These regulations has a binding power with legal sanction, especially for obligations, which has to be executed by the owner and/or tenant of strata title unit.
The legal sanction related to tenant’s obligations is regulated under Article 77 GR No. 4 of 1988. Article (1) from the paragraph says, “anyone who violates the provisions of Article 30, Article 31, Article 34, Article 35 paragraph (1) and paragraph (3), Article 38 paragraph (2), Article 39 paragraph (1), Article 61 paragraph (2) and paragraph (3) and Article 67, is charged with a maximum inprisonment of 1 (one) year and/or a maximum fine of Rp.1.000.000,- (one million Rupiah).
Ardhityo Rompas
Condominium Development Policy
Posted by admin in Property Law, Strata Title on August 18, 2009
Housing and residence are every human being basic needs. With the increasing number of inhabitants, the land space provided becomes very limited. Because of that, houses are made in a multistory structure or commonly known as condominium (rumah susun). The development of condominium is an alternate problem solution of the needs of housing and residences especially in the cities or urban areas where the inhabitant is always expanding. That is because by developing condominium, the use of land can be suppressed, it provides a more spacious open-air city areas, and it can also be used to rejuvenate a city from the slum areas.
Indonesia has a law that regulate condominium, it is Law No. 16 of 1985 about Condominium (the “Law of Condominium”). The definition of condominium according to Article 1 number (1) on the Law of Condominium is a multistory structure building built in an environment that is divided into parts which functionally structurize horizontally and vertically and consist of units that can be owned individually and can be used separately, particularly for residence, which is completed with shared parts, shared properties, and shared land.
The main regulations of condominium are Law No. 16 of 1985 (enacted on December 31, 1985) and Government Regulation No. 4 of 1988 (enacted on April 26, 1988). There are also other regulations that specifically regulate condominium or strata title.
Direction of policy for condominium in Indonesia can be found within the Law of Condominium, there are three (3) essential substances, which are: Read the rest of this entry »
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