International Journal of Law


International Journal of Law
International Journal of Law
Vol. 7, Issue 2 (2021)

Legal consequence of binding a guarantee on land rights with a sale and purchase agreement when the debtor defaults


Eviana Putri Anggraini, Suraji and Pujiyono

This study aimed to examine and analyze the legal consequences of binding land rights guarantees with a Sale and Purchase Agreement when the debtor defaults. The method used in this study was normative legal research with secondary data from primary legal materials and secondary legal materials related to research. The result of this study showed that the bonding of debts and receivables in the form of land rights with the Sale and Purchase Agreement had violated the provisions in Article 1 number 1 of Law Number 4 of 1996 concerning Mortgage Rights to Land and Objects related to Land or often called Mortgage Rights Law. It stated that guarantees imposed on land rights are carried out with Mortgage Rights. Based on the terms of the agreement validity, the collateral for the debts and receivables in the form of land rights with the Sale and Purchase Agreement did not meet the objective requirements. This is because of a forbidden cause; the Sale and Purchase Agreement's legal consequences were null and void by law. Therefore, if the debtor was not interpreted in the debt agreement, the name of the certificate from the debtor to the creditor can be made based on the Sale and Purchase Agreement and cannot be pursued through the auction process as stated in Article 6 of the Insurance Rights Law. In the absence of a Mortgage, the security right over Land for certain repayment did not have a position that took precedence over other creditors.
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