Legal Protection for Good Faith Buyer under Supreme Court Decision No. 306/K/TUN/2015

Legal Protection for Good Faith Buyer under Supreme Court Decision No. 306/K/TUN/2015

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Legal Protection for Good Faith Buyer under Supreme Court Decision No. 306/K/TUN/2015

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buyer (1)Learning Points

A good faith buyer shall be protected from the perspective of civil law, state administrative law, and criminal law. The buyer of land is considered as good faith buyer if the sale and purchase of land is made before Land Conveyancing Officer and according to the prevailing regulations. The damages suffered by the real owner of land should be borne by the seller that sells the land to the buyer.

Summary of Case

On 27 April 2014, Drs. M (“Claimant”) filed a state administrative claim in the State Administrative Court of Padang, towards the issuance of right to own certificate that has been issued by Land Office of Agam Regency (“Defendant”). The Claimant claims that he owns a land that is obtained from the inheritance from his parent, namely SBPK, in the area of 4,135 m2, located in Sub-District Banuhampu, Agam Regency, West Sumatera. Under the customary law in Minangkabau, the land status is low heritage treasure (harta pusaka rendah).

The Claimant found that the land has been certificated under the name of EY by the Defendant. The Claimant claims that the land has never been transferred to EY, and therefore the Claimant suffered damages as a result of the issuance of certificate. The Claimant states that from 1960, the land is still under customary mortgage, and never been controlled physically by EY. Therefore, the issuance of certificate violates the Government Regulation No. 24 of 1997 on Land Registration, and general principles of state administration. In his petition, the Claimant requests the judges to invalidate the land certificate.

The Defendant argued that the issuance of land certificate has been made according to the prevailing laws and regulations, and general principles of state administration. The land registration previously applied by EY since the land is a customary land that is hereditary owned by EY, based on statement letter of land physical control and information letter from wali nagari (head of village). The land status is high heritage treasure (harta pusaka tinggi). Further, the land certificate has been transferred by EY to RSNR (“Defendant-Intervenor”) based on sale and purchase deeds, made before the Land Conveyancing Officer.

Legal Consideration On The First, Appeal, And Cassation

First Stage:

The State Administrative Court of Padang accepted the absolute exception filed by Defendant and Defendant-Intervenor, and declared that the court is not authorized to adjudicate the case, since there is a contradiction of land origin, whether the land is a low heritage treasure (harta pusaka rendah) or high heritage treasure (harta pusaka tinggi), and that contradiction cannot be examined in a state administrative court.

Appeal Stage:

The High State Administrative Court of Medan in the appeal stage confirmed the legal consideration made by the State Administrative Court of Padang.

Cassation Stage:

The Supereme Court through Decision No. 306/K/TUN/2015, dated 31 July 2015, rejected cassation filed by Claimant. The Defendant-Intervenor is considered as good faith buyer that should be protected from the perspective of civil law, state administrative law, and criminal law. The land certificate has been transferred to the Defendant-Intervenor through a process conducted by Land Conveyancing Officer. Therefore, the damages suffered by Claimant should be borne by the parties that are proven to conduct unlawful act in the process of transfer of right.


Ivor Pasaribu

Gedion Calvein

 

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