AJB States “Fully Paid” but in Fact It Is Not – What Are the Risks?

• Admin
• Agraria, News, News and Insights
• September 25, 2025

1. Introduction

The Sale and Purchase Deed (Akta Jual Beli or AJB) is an important instrument in land and building transactions. An AJB made by a Land Deed Official (Pejabat Pembuat Akta Tanah or PPAT) has the force of an authentic deed and serves as the legal basis for transferring land rights through the title transfer process at the National Land Agency (Badan Pertanahan Nasional or BPN).

However, problems arise when the AJB states that the purchase price has been fully paid, while in fact the payment has not been made in full. This situation gives rise to various legal implications for the parties as well as for the PPAT.

2. AJB and Authentic Deeds

• AJB is an authentic deed that carries full evidentiary value. If it states “fully paid,” the law presumes this to be true until proven otherwise.

• According to Article 1868 of the Indonesian Civil Code (KUHPerdata), an authentic deed is a deed made in the form prescribed by law, by or before a competent public official at the place where the deed is made. Authentic deeds carry full and binding evidentiary power between the parties. Accordingly, deeds made before a Notary or PPAT are considered authentic deeds with perfect evidentiary strength.

3. Legal Risks

• Seller may lose the right to payment
  Since the AJB is an authentic deed with perfect evidentiary value, once it states that the payment is “fully paid,” the buyer is deemed by law to have paid, and the seller is deemed to have received payment.

• Seller may lose ownership of the land
  Because the AJB states “fully paid,” the certificate can be processed for title transfer to the buyer. As a result, the seller risks losing ownership of the land even though payment has not been received, leading to significant losses since the land rights have transferred while the payment is legally deemed settled.

4. Responsibility of the PPAT

• PPAT is a public official authorized to draw up authentic deeds relating to certain legal actions concerning land rights.

• Based on Government Regulation No. 24 of 2016, PPAT has the responsibility to:

  1. Uphold the state ideology, law, oath of office, and code of ethics;

  2. Act with professionalism;

  3. Work responsibly, independently, honestly, and impartially.

• Under Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of BPN No. 2 of 2018 on the Guidance and Supervision of PPAT, a PPAT who fails to fulfill their responsibilities may be subject to reprimand, temporary suspension, or even dismissal.

5. Legal Remedies Available

The legal risks of an AJB declaring “fully paid” when in fact it is not, clearly cause actual harm to the seller. The seller, as the aggrieved party, may pursue the following remedies:

a. Filing for annulment of the agreement
Under Article 1320 of the Civil Code, a valid agreement must meet:

Article 1321 of the Civil Code provides that no consent is valid if given by mistake, or obtained through duress or fraud. Thus, an agreement made under coercion or fraud is void, and the subjective element of the contract is not fulfilled, making annulment of the AJB possible.

b. Filing a tort claim (Perbuatan Melawan Hukum)
Article 1365 of the Civil Code states: “Every unlawful act which causes damage to another obliges the person by whose fault the damage was caused to compensate for the loss.”

Elements of an unlawful act:

1. Act → stating “fully paid” in the AJB contrary to fact;

2. Unlawful nature → contrary to legal obligations, morality, or propriety;

3. Damage → seller suffers financial loss due to unpaid balance;

4. Causality → damage arose because the AJB was inconsistent with reality;

5. Fault → either intentional or negligent conduct by the buyer, and possibly the PPAT.

c. Filing a criminal report
If the PPAT and/or the parties intentionally state “fully paid” while in fact it is not, this may constitute false information in an authentic deed, falling under Article 266 of the Indonesian Penal Code (KUHP).

• Article 266 KUHP provides:
  (1) Any person who causes false information to be included in an authentic deed regarding a matter which the deed should declare as true, with the intent that such deed be used as if the information were true, shall be punished with imprisonment of up to seven years.
  (2) The same punishment applies to anyone who knowingly uses such deed as if its contents were true, if such use may cause loss.

Elements of the offense under Article 266 KUHP:

1. Inserting false information into an authentic deed or causing another to do so → e.g., buyer or PPAT states payment was “fully paid”;

2. The deed must state the truth of the matter → e.g., status of payment in the AJB;

3. Intent to use the deed as if the statement were true → e.g., using AJB for title transfer at BPN;

4. Use of the deed causes loss → seller is harmed as land is transferred while payment is incomplete.

6. Conclusion

An AJB inconsistent with the actual facts poses serious problems. For the seller, there is a risk of losing the right to the outstanding payment. For the buyer, there is a risk of being sued for default (wanprestasi) or annulment of the AJB. For the PPAT, it undermines professional integrity and may lead to civil, criminal, and administrative sanctions.

Thus, the PPAT has a preventive responsibility to ensure that every deed reflects the true circumstances. Meanwhile, the seller may pursue remedies including annulment of the AJB, filing a tort claim, or lodging a criminal report.

Author:
Renaldi Avri Angga, S.H.