What Is a Deed of Gift and How Do You Process It?
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A Deed of Gift is an official document prepared by a Notary/PPAT to transfer ownership of land or buildings from a donor to a recipient without any payment. Without this deed, the transfer is not legally valid and may lead to disputes in the future.
Why Must It Be Made by a Notary/PPAT?
A gift is only legally valid when executed in the form of an authentic deed. Once signed, ownership fully transfers to the recipient and—under most circumstances—cannot be revoked.
Requirements for Making a Deed of Gift
To process a Deed of Gift, the following are generally required:
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Presence of both the donor and recipient
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Two witnesses
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Complete supporting documents (ID cards, Family Cards, original land certificate, latest land tax/SPPT PBB, and other relevant documents)
After the deed is signed, the PPAT will process the name transfer (balik nama) on the land certificate.
Taxes to Be Settled
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BPHTB (Land and Building Acquisition Duty): Paid by the recipient; some regions offer reductions for gifts within the immediate family.
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Income Tax (PPh): Typically not imposed for pure, non-commercial gifts.
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All outstanding PBB (land tax) must be cleared before the process can continue.
Cost and Processing Time
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The Deed of Gift typically costs 2%–2.5% of the property’s value/NJOP, not including taxes and administrative fees.
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The process usually takes 2–4 weeks, depending on document completeness and tax status.
Can a Deed of Gift Be Challenged?
A properly executed notarial deed carries strong legal authority. Challenges from heirs are generally unsuccessful when the process was conducted correctly, transparently, and without coercion.
Summary
A Deed of Gift ensures that the transfer of property ownership is legal, safe, and protected. To avoid future conflicts, the process must be carried out through a Notary/PPAT with all required taxes and documents properly completed.
Disclaimer: This article is intended for informational and educational purposes only. It should not be considered legal advice. For specific guidance, please consult a qualified legal professional.
