Procedure for Processing AJB to SHM When Purchasing Property

What is AJB and SHM?

The Deed of Sale and Purchase, or AJB for short, is a legally binding document that proves the transfer of rights over land and buildings.


AJB is used as evidence of the handover or transfer of rights over land and buildings from the seller to the buyer, where AJB is a requirement for a land or property transaction to be legally recognized. In its creation, only the Land Deed Official (PPAT) has the authority to create AJB.


In addition to AJB, there is also the official document of property ownership, namely SHM or Certificate of Ownership Rights, which is equally important.


SHM is a legally binding document that proves the strongest ownership of a piece of land or property without specific limitations. In its creation, SHM is submitted by a Notary to the National Land Agency (BPN).


SHM can be used for buying and selling, leasing, inheritance, mortgaging, and as collateral. Furthermore, its status is higher compared to Right to Build.


In real estate transactions, AJB is used as evidence of the transfer of land rights, while SHM is a document signifying the strongest type of property ownership.


Documents in the Process of Converting AJB to SHM

In the process of converting AJB to SHM, there are several documents that need to be prepared for submission to the National Land Agency (BPN) office:


Application Form


Filled and signed by the applicant or authorized person on a stamp duty. The application form includes personal information, land area, location, and use of the requested land, a statement confirming that the land is not in dispute, and that it is physically possessed.

Dispute-Free Letter


States that the land in question is not in dispute, signed by the neighborhood and community unit (RT and RW), then certified by the local sub-district.

Deed of Sale and Purchase from PPAT


Certificate of Land Ownership Rights (SHM)


Photocopies of ID Cards of the Seller and Buyer


Proof of Payment of Income Tax (PPh) and Land and Building Acquisition Duty (BPHTB)


Procedures for Converting AJB to SHM:


Submitting the certificate application


Request a recommendation letter from the local sub-district regarding the concerned land, stating that the land has not undergone the certification process and explaining the land’s ownership history.

Creating a dispute-free letter


Declare that the land in question is not in dispute, signed by RT and RW, then certified by the local sub-district.

Location measurement conducted by relevant officers


BPN officers conduct a survey of the location and re-measure the land object.

Approval of the measurement document


Issuance of situational drawings or measurement letters by BPN, followed by authentication by authorized officials. After the measurement document is signed, the process continues with the committee from the Land Rights Granting Sub-Section, consisting of officers from BPN and the local sub-district.

Announcement of Juridical Data at the Sub-District and BPN


Announcement is made at the BPN office and the local sub-district. If there are no objections or disputes after 2-3 months of the announcement, the announcement will be approved.

Payment of BPHTB


Settle the payment of the Land and Building Acquisition Duty (BPHTB) based on the area stated in the situational drawing or measurement letter. The amount paid is based on the Tax Object Sales Value (NJOP) and the land area.

Registration of the Right Certificate to be Issued


Once the Right Certificate is approved, it proceeds to the certificate issuance stage at the Registration of Rights and Information (PHI) sub-section. The certificate issuance time varies depending on the location and various other factors; generally, the certificate can be obtained after 6 months.

AJB (Deed of Sale and Purchase), SHM (Certificate of Ownership Rights), Conversion Process

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