Buying Property Under a PT’s Name, Can It Be Directly Transferred?
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Buying property under a PT’s name is not simply a matter of changing the buyer’s name from an individual to a company. Several matters need to be confirmed from the beginning to ensure that the transaction is appropriate for the PT’s purpose and circumstances.
1. Can a PT Buy Property?
In principle, a PT may own assets to support its business activities. However, when it comes to land, the type of land right that may be held by a PT needs to be considered.
Unlike individuals, a PT generally cannot own land under Hak Milik (SHM). One type of land right commonly used by legal entities such as PTs is Hak Guna Bangunan (HGB).
Therefore, if the property you intend to purchase is still under SHM, do not immediately assume that the certificate can simply be transferred into the PT’s name.
2. What Is the Property Being Purchased For?
The purpose of the purchase is also important.
Will the property be used as an office, business premises, or company asset? Or will it actually be used as the PT owner’s private residence?
The purpose may affect how the transaction and ownership of the property should be structured.
3. Who Is Authorized to Represent the PT?
The purchase is made by the PT, not by the Director in their personal capacity.
Therefore, it is important to confirm who is authorized to represent the PT in the transaction, including reviewing the Articles of Association and the authority of the Directors, as well as whether approval from the company’s corporate organs is required for the transaction.
Before Paying the Deposit, Check First
If the property is intended from the beginning to be owned by the PT, the purchase structure should preferably be confirmed before paying the deposit or signing the transaction documents.
At a minimum, check:
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the status and type of land right;
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the intended use of the property;
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the PT’s authority to enter into the transaction; and
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the documents required for the purchase process.
Conclusion
Buying property under a PT’s name requires planning from the beginning. Do not only consider the property you want to purchase, but also make sure that the land right, intended use, and transaction structure are appropriate for the PT.
Because mistakes discovered after the transaction is already underway can be much more difficult to correct.
Disclaimer: This article is prepared for general legal information and educational purposes only. Regulations may change from time to time in accordance with applicable policies. For specific legal advice or case handling, please consult a legal professional.
