PPJB and AJB are terms often heard in the process of buying and selling land or houses. If you have plans to buy a house in the near future, it is good to know the differences between PPJB and AJB.
Definition of PPJB and AJB
PPJB is an abbreviation for the Sale and Purchase Agreement, a legally binding document regarding the sale and purchase agreement between the developer and the prospective buyer in the process of building a house.
PPJB is usually made in the presence of a notary. PPJB is made at the time of payment for the land or building, where PPJB functions as a temporary binder so that the property is not bought by others.
AJB is an abbreviation for the Deed of Sale and Purchase, a legally binding document that proves the transfer of rights to land and buildings.
In the making of AJB, only the Land Deed Making Officer (PPAT) has the right to make AJB, and when signing, it must be accompanied by the PPAT.
AJB is used as evidence of a legitimate land or building sale transaction with an agreed-upon price and conditions between the seller and the buyer, as evidence in the event that one party fails to fulfill obligations, and as proof that both parties have fulfilled their respective rights and obligations.
The creation of PPJB and AJB
The creation of PPJB is done after the developer or seller fulfills several requirements regarding:
Land Ownership Status
Proven by showing the land certificate to the buyer when signing PPJB
Agreed-upon Terms
Discussing the condition of the house being the object, facilities, infrastructure, and public utilities
Building Permit Ownership
Availability of infrastructure and public utilities
At least 20% completion of construction
As the selling party, the documents to be prepared in the making of AJB are:
Copy of ID Card
Copy of Family Card
Copy of Marriage Book
Original Land Certificate
Land and Building Tax Payment Receipt (STTS)
Approval Letter from Spouse
Original Death Certificate if the spouse has passed away
Heir Certificate if the spouse has passed away and there are children born from their marriage
As the buying party, the documents to be prepared in the making of AJB are:
Copy of ID Card
Copy of Family Card
Copy of Marriage Book if married
Copy of Taxpayer Identification Number (NPWP)
The conditions influencing the validity of AJB creation are as follows:
The presence of the seller and buyer during the AJB creation, and if one party cannot attend, they can be represented by a person authorized through an officially proven power of attorney.
Several witnesses must be present during the AJB creation, with a minimum of two individuals.
Document Content:
According to Regulation No. 12 of 2021 concerning the Organization of Housing and Settlement Areas, the contents of the PPJB document include:
Identity containing personal data of the seller and buyer.
Description of the PPJB object.
Price and payment scheme.
Legal assurance or validity from the seller.
Transfer of PPJB rights.
Cancellation of commitment.
Settlement of PPJB disputes.
According to the Minister of ATR/BPN Regulation No. 3 of 1997 concerning Land Registration, the contents of the AJB document include:
Information about the Seller/Party First, including capacity and authority.
Information about the Buyer/Party Second, including capacity and authority.
Information about PPAT and a statement that PPAT recognizes the parties involved.
Description of the Object of Sale and Purchase.
Differences between PPJB and AJB:
Based on their definitions, PPJB is evidence or a document of agreement between the seller and potential buyer.
When the buying and selling process is fully completed, an AJB (Akta Jual Beli) is then created as proof of handover or transfer of rights to land and buildings from the seller to the buyer. The AJB is a requirement in land or building transactions to be considered legally valid.
The purpose of PPJB is to act as a temporary binding agreement while waiting for the official creation of AJB in the presence of a Land Deed Officer (Pejabat Pembuatan Akta Tanah – PPAT).
AJB has a higher legal status, signifying the transfer of ownership rights from the seller to the buyer of the land or building, whereas PPJB serves as a temporary agreement between the seller and the buyer without an actual transfer of ownership rights.
PPJB (Sale and Purchase Agreement), AJB (Deed of Sale and Purchase), Land transaction differences