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and disputes often present major challenges in the business world, especially in Indonesia. Such disputes not only lead to financial losses but can also damage your business reputation. Therefore, it’s crucial to take preventive measures early on.
Common Causes of Land Disputes in Business
Some common causes of land disputes in Indonesia include:
- Unclear ownership status
- Overlapping land claims
- Incomplete or falsified land documents
- Unclear land boundaries
- Mistakes in land transactions
Practical Steps to Avoid Land Disputes
Here are preventive steps to avoid land disputes in your business:
1. Verify Land Ownership Status
Ensure land ownership is clear and officially registered, such as Freehold Title (SHM) or Right to Build (HGB).
2. Check with BPN
Verify certificate authenticity and ensure no overlapping claims exist at the National Land Agency (BPN).
3. Check Zoning and Spatial Planning
Ensure the land complies with regional zoning regulations to avoid future disputes.
4. Draft a Valid Sale and Purchase Agreement
Use legally valid written sale and purchase agreements with assistance from notaries or property lawyers.
5. Sign Transactions Before Authorized Officials
Conduct property transactions before authorized officials such as notaries to reinforce legal validity.
Benefits of Avoiding Land Disputes
Case Example
Mr. Andika owns a rapidly growing restaurant business. He purchased land for expansion without thorough verification. After the transaction, he discovered the land was under dispute. Consequently, his expansion project stalled, his business operations were disrupted, and he faced prolonged legal proceedings. This issue could have been avoided had Mr. Andika conducted thorough verification before the purchase.
Conclusion
Avoiding land disputes requires carefulness and diligence from the beginning of any transaction. With appropriate preventive measures, you can ensure your business remains protected from serious legal risks related to land disputes.
Facing land disputes or need property legal advice? Contact AUFAR & Co for a free consultation!
