What Legal Steps Can Buyers Take?
In property sale and purchase transactions, the developer who is the party constructing a particular building may go bankrupt. This problem of a bankrupt developer could affect the status of the Sales and Purchase Agreement (PPJB) and they are required to compensate for losses.
So, can developers be sued legally? If possible, what legal steps must the buyer take when the developer is declared bankrupt?
This article explains what the PPJB status of buyers is and whether bankrupt developers can be prosecuted legally. Not only that, it also explains the legal steps that creditors can take.
What is the Buyer’s PPJB Status?
Based on Government Regulation no. 14 of 2016, PPJB is described as an agreement between the developer and other individuals. This agreement is known as a binding agreement, because it is made before signing the sale and purchase deed.
The effect of developer bankruptcy on the buyer’s PPJB status is stated in Article 37 paragraph (1) of Law no. 37 of 2004 concerning Bankruptcy and Postponement of Debt Payment Obligations (Bankruptcy and PKPU).
“If in the agreement as intended in Article 36 it has been agreed that the delivery of merchandise which is normally traded for a certain period of time and the party who must deliver the object before the delivery is carried out is declared bankrupt, then the agreement will be annulled with the promulgation of the decision to declare bankruptcy…”
Based on the sound of this article, it is clear that the buyer’s PPJB status will be removed as a binding document for the purchase. The removal of the buyer’s PPJB status is carried out in conjunction with the bankruptcy decision being submitted.
Can Developers Be Legally Sued?
Prosecution can be carried out if the buyer has paid in full the PPJB which binds future sales. For example, A bought land based on PPJB which has been paid in full even though the payment period is 8 years.
In accordance with the Supreme Court Circular (SEMA) No. 4 of 2016, legal status of land rights in PPJB occurs if the buyer has paid the price of the land and controls the object and acted in good faith.
Based on the attachment, A, who already has rights to the land or building offered by the developer, can prosecute. So, what will happen to creditors who have only paid part of their nominal amount?
Referring to Article 37 of Law no. 37 of 2004, “the opposing party suffers a loss due to the write-off, so the person concerned can apply as a concurrent creditor to obtain compensation.”
That way, they can ask for their rights so that the developer returns the money that has been handed over to PPJB. The claim process as a concurrent creditor can be submitted to the Court Curator.
What Legal Steps Should Buyers Take?
There are various legal steps that buyers can take when a developer goes bankrupt. Starting from submitting claims to court-appointed curators, reviewing PPJB agreements, requesting civil lawsuits, filing criminal charges, to class actions.
Submit a Claim to the Curator
According to Article 115 paragraph (1) Law no. 37 of 2004, submitting a claim is carried out by giving the buyer’s receivables to the Curator. This information must include a written calculation, the amount of the receivable, evidence or copies, and a statement of certain privileges.
The registration must be submitted after the developer is declared bankrupt. The curator will submit this bankruptcy statement via a letter to the creditors’ addresses and two daily newspapers a maximum of 5 days after the determination, as written in Article 114 of the similar Law.
Review the PPJB Agreement
What is the purpose of reviewing the PPJB agreement when taking legal steps? You can monitor the contents of the agreement, both in terms of the total amount that must be paid and the rights that the buyer needs to receive.
Based on the points of the PPJB binding agreement that have been made, you can demand what you should get, especially for those whose payments have been paid in full. Meanwhile, for those who have not paid it off, they can claim compensation according to the figure that has been submitted.
Carrying out a Civil Lawsuit
The procedure for requesting compensation can be carried out through a civil lawsuit, if the problem concerns individuals and the developer as a legal subject. For example, the PPJB listed and the nominal payment that must be paid per payment are different.
Whether the developer is bankrupt or non-bankrupt, they can be sentenced to a certain fine and required to compensate a certain nominal amount. The civil lawsuit regarding this matter was submitted to the Commercial Court which handles the sale and purchase case.
Making criminal charges
Why are legal steps to bring criminal charges included in this article? Bankrupt developers may already know that their company will be declared bankrupt, so they deliberately carry out PPJB to deceive buyers.
When the buyer makes a payment of a certain nominal amount, the company declared bankrupt will lose its PPJB with the buyer. This strategy can be reported with certain evidence as a criminal case of fraud or an act that is detrimental to other people.
Collaborate with Other Consumers to File a Class Action
Class action is referred to in Indonesian terms as a class lawsuit or class representative lawsuit. You can collaborate with consumers or other property buyers to file this lawsuit.
For example, you and hundreds of other people already have a PPJB for the apartment of company A which was declared bankrupt. Then, you and hundreds of consumers can file a class action lawsuit to sue company A.
Closing
Based on the discussion above, we can see that the case of a developer going bankrupt can affect the buyer’s PPJB status. The status of binding documents regarding the transfer of land or immovable property will be abolished.
Prosecution against a bankrupt developer can be carried out to request compensation for the money that has been handed over, either in full or partially paid. However, the status of the applicants when demanding compensation was classified as concurrent creditors.
There are various legal steps that can be implemented to resolve the problem of bankrupt developers. To make it easier to find a solution, you can contact Hukumku to speak directly through the services of a property law attorney.
Hukumku provides legal consultation services to the assistance process in court. Therefore, you can contact Hukumku via the application to resolve your various legal problems.
