Legality Deed Authentic As form Agreement Sell Buy Land in Front Notary by the Parties which still has status Guarantee Bank In the Context of Business Law

DOI

10.2991/978-2-38476-531-7_19How to use a DOI?

Keywords

Authentic Deeds; Legality; Business Law

Abstract

Land purchase and sale transactions in modern business practices are often carried out in stages through a pre-transactional process. One form of legal binding in this initial stage is the creation of an authentic deed by a notary as a form of initial agreement between the seller and buyer. Problems arise when the object of the sale and purchase, namely land, is still in the status of credit collateral at the bank or is burdened with a mortgage, so that legally its ownership rights cannot be transferred. This study aims to analyze the legality of authentic deeds made for land sale and purchase agreements that still have the status of bank collateral from the perspective of civil law and business law. This study uses a normative juridical method with a statutory approach and a conceptual approach. Data were collected through a literature review of laws and regulations such as the Civil Code, Law No. 4 of 1996 concerning Mortgage Rights, as well as legal literature and related court decisions. The analysis was carried out qualitatively to assess the validity and legal implications of the authentic deed. The research results show that an authentic deed for the sale and purchase of land still pledged as collateral to a bank can be declared valid as a form of initial agreement, but cannot be executed as a transfer of rights before the mortgage is removed. The deed has evidentiary power, but is limited because the object of the agreement does not fully meet the requirements of "certain things" that can be freely transferred. From a business law perspective, this practice is understood as a risk mitigation strategy and transaction security, but still requires compliance with legal provisions on guarantees and protection for third parties, namely creditors. This study recommends the need to strengthen regulations and technical guidelines for notaries regarding the creation of authentic deeds for objects that are still collateral, in order to provide legal certainty for the parties and maintain legal integrity in property business transactions.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Nico Antonius
AU  - Elvira Fitriyani Pakpahan
AU  - Rodiatun Adawiyah
AU  - Heriyanti Heriyanti
PY  - 2026
DA  - 2026/01/03
TI  - Legality Deed Authentic As form Agreement Sell Buy Land in Front Notary by the Parties which still has status Guarantee Bank In the Context of Business Law
BT  - Proceedings of the 1st International Forum on Psychology, Law, and Education (IFPLE 2025)
PB  - Atlantis Press
SP  - 172
EP  - 176
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-531-7_19
DO  - 10.2991/978-2-38476-531-7_19
ID  - Antonius2026
ER  -