These principles serve as a legal risk mitigation framework when Legal Due Diligence (LDD) is conducted before a land sale and purchase transaction is carried out, and this is also a form of a good-faith buyer and is protected by law, including:

 1. Legitimacy of Land Ownership Rights The most important requirement is to verify the legal status of the land. Land with a Certificate of Ownership (SHM) provides the strongest legal protection under Article 23 of Law No. 5 of 1960 on Basic Agrarian Regulations (UUPA). Land without official certification (such asa  girik, letter C, or village certificate) should be formalized through the National Land Agency (BPN) to ensure its legal transfer.

2. Clear and Legal Ownership It is important to ensure that the seller is the legal owner. In cases involving gono-gini property or inheritance, appropriate legal documents such as a marriage certificate or inheritance certificate should be provided. Articles 35-36 of Law No. 1 Year 1974 on Marriage regulates marital property relations, which requires spousal consent for the transfer of jointly owned land.

3. Consistency Between Physical Data and Legal Data The physical dimensions of the land must match the records in the land certificate. If there are discrepancies, Article 19(2) of Government Regulation No. 24/1997 allows for re-measurement and correction. Failure to correct discrepancies may result in boundary disputes or overlapping claims.

 4. Legality of the Location and Compliance with Spatial Plans The buyer should examine the location to determine whether the land is within a disaster-prone zone, conservation area, or protected green space. In accordance with Law No. 26 of 2007 on Spatial Planning, any land use must be in accordance with the Regional Spatial Plan (RTRW). Failure to comply with this may lead to restrictions on use or even revocation of rights.

5. Implementation of a Sale and Purchase Deed by a Land Deed Official (PPAT) Pursuant to Article 37 (1) of Government Regulation No. 24 of 1997, any transfer of land rights must be formalized through a Sale and Purchase Deed (AJB) by a licensed Land Deed Official (PPAT). The AJB is a prerequisite for registration of the hak milik/Hak Guna Bangunan and legal recognition of the transaction.

 6. Settlement of Tax Liabilities Every land transaction involves taxes: the seller is liable for Income Tax (PPh) and the buyer has to pay Fees on Acquisition of Land and Building Rights (BPHTB). As stipulated in Law No. 21 of 1997 jo. Law No. 20 of 2000, proof of tax payment is mandatory for the title transfer process, including the land and building tax (SPPT PBB) must have been paid in full by the Seller when the land/property sale transaction will be conducted.

 7. Registration of Title Transfer at BPN After completing the sale and purchase process and tax obligations, the buyer must register the change of ownership at the local Land Office (BPN). Legal ownership is not recognized until the buyer's name is officially recorded on the land certificate.

Preventive Legal Protection and Due Diligence In the Indonesian legal system, the precautionary principle is fundamental in any legal transaction, especially in land acquisition/Jual Buy. Failure to comply with these procedures will expose the buyer to significant legal and financial risks. In its various rulings, the Indonesian Supreme Court has emphasized the need for complete and accurate legal documentation as a basis for asserting ownership rights.

Conclusion: Ensuring legal certainty in land purchases is more than just obtaining a certificate. It requires strict adherence to procedural and substantive legal obligations under agrarian law, land administration regulations and spatial norms. Adherence to the seven principles outlined above will empower buyers with a stronger legal position and protect them from future disputes. Feel Free to Connect & Contact LOMBOK LEGAL for any legal issue at Jl. By Pass Praya Batu Jai No. 99 Panji Sari, Gelondong, Praya, Central Lombok- West Nusa Tenggara Province. Mobile +628175000121.- https://lomboklegal.com