Deed of Sale and Purchase with “Coercion” or “Mistake”
A Deed of Sale and Purchase (AJB) is a deed created and signed in the presence of a Land Deed Official (PPAT) in accordance with their authority. The AJB also serves as a valid legal document for the transfer of land rights from the seller to the buyer. What happens if there are elements of “coercion” and “mistake” in the creation of the AJB?
Definition of AJB
The definition of AJB is not found in legislation. However, systematically, AJB is understood as a deed of sale and purchase agreement for land and buildings drawn up and signed before a PPAT in accordance with their authority, where the deed serves as evidence of the transfer of land rights and as the basis for the transfer of rights at the Land Office. This is in accordance with the provisions of Article 37(1) of Government Regulation No. 24 of 1997 on Land Registration, which states:
“The transfer of rights to land and ownership rights to apartment units through sale and purchase, exchange, gift, incorporation into a company, and other legal acts of transfer of rights, except for the transfer of rights through auction, can only be registered if proven by a deed drawn up by an authorized PPAT in accordance with the provisions of the applicable laws and regulations.”
Validity of AJB with “Coercion” and “Mistake”
Like any agreement, the validity of an AJB is based on whether or not the requirements for a valid agreement are met. Article 1320 of the Civil Code states that an agreement (consent) is valid if it meets four conditions, namely: the buyer and:
- their agreement to bind themselves;
- the capacity to enter into a contract;
- a specific subject matter;
- a cause that is not prohibited.
All four elements must be cumulatively fulfilled for an AJB to be considered legally valid.
“Coercion” and “Mistake” Do Not Fulfill the Element of Agreement.
The element of coercion in an agreement is regulated in Article 1323 of the Civil Code:
“Coercion exerted on a person entering into an agreement results in
the invalidity of the agreement, even if the coercion is exerted by a third party who
has no interest in the agreement.”
Meanwhile, regarding mistake in an agreement, it is regulated under Article 1322 of the Civil Code:
“Mistake does not result in the invalidity of an agreement, unless the mistake concerns
the nature of the subject matter of the agreement. Mistake does not result in
nullity if the mistake only concerns the person with whom one
intends to enter into an agreement, unless the agreement was given primarily
because of the person concerned.”
Legal Consequences of AJB with “Coercion” and “Mistake”
The presence of coercion and mistake in an agreement results in the failure to meet the requirement of mutual consent. This requirement is categorized as a subjective requirement, which means the agreement may be voidable. In other words, as long as the parties do not object to the agreement (including the AJB), the agreement is deemed valid and binding on the parties. Conversely, if one or both parties object due to suspected coercion or mistake, the AJB may be subject to cancellation.
Mechanism for Canceling an AJB
Like other sales agreements, an AJB can be canceled at the parties’ discretion. If one party is not satisfied, cancellation can be requested from the court. However, it should be noted that as long as the AJB has not been canceled, it is deemed binding on the parties and can be used as evidence of the transfer of land rights.
Legal Basis
Government Regulation No. 24 of 1997 on Land Registration;
Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency of the Republic of Indonesia No. 16 of 2022 on the Delegation of Authority for the Determination of Land Rights and Land Registration Activities;
Civil Code.
Authors :
Gracia, S.H.
Evi Mutiara
Editor : Muhammad Arief Ramadhan, S.H.