A preliminary sales agreement, also known as “PPJB,” is an agreement made by developers and individuals to purchase a house or a unit in an apartment building. This agreement can be made before the construction of the apartment or during the construction process for single-family homes and row houses, and it is executed in the presence of a notary. In simple terms, PPJB is an agreement made by the developer and the buyer when the process of buying and selling land or buildings begins.
The PPJB (Preliminary Sale and Purchase Agreement) is carried out after the developer meets the requirements for certainty regarding:
- Land ownership status;
- Agreed terms;
- PBG (Building Permit);
- Availability of infrastructure, facilities, and public utilities; and
- At least 20% construction completion.
The PPJB itself must contain at least:
- Identification of the parties;
- Description of the PPJB object;
- House price and payment procedures;
- Developer guarantees;
- Rights and obligations of the parties;
- Time of handover of construction;
- Building maintenance;
- Building usage;
- Transfer of rights;
- Cancellation and termination of the PPJB; and
- Dispute resolution.
In addition to the requirements mentioned above, the PPJB must meet requirements that are almost identical to other agreements, as stated in Article 1320 of the Civil Code:
- The agreement of the parties that binds them;
- The capacity to enter into an obligation;
- A specific subject matter;
- A lawful cause.
When the agreement was made, the legal requirements of the agreement as stated in Article 1320 of the Civil Code have been fulfilled. Because the PPJB meets the requirements of an agreement that binds the parties and is effective like a law, it can be considered legally valid. Both parties must comply with the provisions of the agreement and implement them.
The statement that “the developer promises not to sell or transfer the rights to the ownership of the certificate” refers to the agreement made between the Buyer and the Developer in the PPJB, where the developer promises not to transfer the selected and agreed-upon plot of land to another party.
Considering the provisions of Supreme Court Jurisprudence No. 4/Yur/Pid/2018:
Parties that do not fulfill their obligations in a legally binding agreement are not committing fraud, but rather are in breach of contract, which falls under civil law, unless the agreement is based on bad faith.
The Supreme Court stated that a case is a civil matter rather than a criminal one if it begins with a civil relationship, such as a contract, and the actions that cause the contract to become unenforceable occur after the contract is made.
Thus, the developer’s action of violating the contents of the PPJB by not transferring the plot of land to another person constitutes a form of default. The legal basis regarding default is stated in Article 1243 of the Civil Code, which reads:
Compensation for costs, losses, and interest due to the non-fulfillment of an obligation becomes mandatory when the debtor, even after being declared negligent, continues to neglect the fulfillment of that obligation, or if something that must be given or done can only be provided or performed beyond the stipulated time.
Default is the act of a debtor who fails to fulfill the obligations as stipulated in the agreement. In this regard, what is meant by performance refers to the provisions of Article 1234 of the Civil Code, which are to give something, to do something, and to refrain from doing something.
The types of default by a debtor can be:
- Completely failing to fulfill the obligation;
- Failing to fulfill the obligation on time;
- Delayed fulfillment of the obligation;
- Incorrect fulfillment of the obligation.
Legal Basis:
- Civil Code;
- Government Regulation Number 14 of 2016 concerning the Organization of Housing and Settlement Areas;
- Government Regulation Number 12 of 2021 concerning Amendments to Government Regulation Number 14 of 2016 concerning the Organization of Housing and Settlement Areas.
Jurisprudence:
Supreme Court Jurisprudence Number 4/Yur/Pid/2018.
Reference: Hukumonline.com