Legal Analysis of Conditional Land Sale Agreements
A Case Study of Supreme Court Decision No. 984 K/Ag/2023
DOI:
https://doi.org/10.24252/al-risalah.v26i2.69314Keywords:
Conditional Sale Agreement, Mortgage Rights, Supreme Court Decision, Legal Protection, Land LawAbstract
Land disputes in Indonesia continue to increase, indicating that landowners have not yet obtained optimal legal certainty and protection, particularly in conditional land sale and purchase agreements where the land is used as collateral through a mortgage by a third party. This study aims to analyze the legal protection available to landowners under payment schemes linked to house sales and to examine judicial considerations in granting landowners the right to settle a debtor’s outstanding debt. This focus offers a novel contribution by addressing a legal framework that has received limited attention in previous studies. The research employs a normative legal approach with a descriptive-analytical design, using grammatical, systematic, and case-based legal interpretation. Data were collected through literature reviews of legislation, court decisions, and legal doctrines and analyzed qualitatively. The findings reveal that disputes primarily arise from unclear conditional agreements. Although the contractual structure formally complies with Articles 1253 and 1263 of the Civil Code concerning conditional and suspensive agreements, its implementation often creates legal uncertainty and weakens legal protection for the parties involved. The study further finds that judges’ decisions to allow landowners to repay the debtor’s remaining financing obligations in order to safeguard their collateral rights are consistent with the principles of legal certainty and mortgage law. Theoretically, this research enriches the development of conditional contract law, while practically it provides guidance for parties engaged in land transactions involving conditional payment arrangements.
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