Legal Consequences of Making A Deed of Sale and Purchase Agreement for Land and/or Buildings Based on A Debt and Receivable Agreement Made by A Notary

Legal Consequences Sale and Purchase Agreements Debts and Receivables Repurchase Rights

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September 17, 2026

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The Sale and Purchase Binding Agreement (Perjanjian Pengikatan Jual Beli/PPJB) has emerged as a response to societal needs in land and/or building transactions that cannot yet be executed through a Sale and Purchase Deed (Akta Jual Beli/AJB), based on the principle of freedom of contract. In its preparation, a PPJB must satisfy the validity requirements of an agreement under Article 1320 of the Indonesian Civil Code to ensure that it remains legally valid and binding. Nevertheless, a phenomenon has developed in practice whereby a PPJB deed is used as the basis for securing debts, as reflected in Decision Number 501 K/Pdt/2017, Decision Number 672/PDT/2017/PT.DKI, and Decision Number 52/PDT/2018/PT SMR. This research aims to formulate the legal consequences of executing a deed of agreement for the sale and purchase of land and/or buildings based on a debt and receivable agreement made before a notary. The theories employed in this research are the Theory of Legal Consequences according to Soeroso and the Theory of Legal Certainty according to Jan Michiel Otto. The research method used is normative juridical research (library-based legal research) based on secondary data, utilizing primary, secondary, and tertiary legal materials. The approaches applied include the legislative approach, conceptual approach, case approach, and analytical approach, with legal material collection conducted through the identification and inventory of legal provisions, legal literature, and other relevant legal materials. The analysis was conducted using grammatical legal interpretation and systematic legal interpretation. The research concludes that the legal consequences of executing a PPJB deed as a basis for debt security, which contains elements of prohibited cause and abuse of circumstances resulting in a defect of consent, are that the deed is null and void. Therefore, the PPJB fails to fulfill both the subjective and objective requirements of a valid agreement. Consequently, the PPJB is deemed to have never existed, resulting in the restoration of each party to the condition prior to the agreement. The legal certainty of a PPJB deed based on debt and receivable agreements containing a repurchase right clause lacks binding legal force because its execution involves prohibited causes and motivations contrary to law. When the subjective and objective requirements of an agreement are not fulfilled, the PPJB is null and void from the outset (ab initio).