Customers Money Assurance over Developers’ Negligence

By Editorial Team 21/08/2019
Summary

The Ministry of Public Works and Public Housing (PUPR) enacted a regulation governing preliminary house purchase agreement (PPJB) in the form of Ministerial Regulation No. 11/PRT/M/2019 which came into force last July. Article 9 of the regulation stated the developer must deliver information related to the development schedule and the signing of the PPJB and the deed of sale and purchase.

If developers fail to meet these schedules, the prospective buyer can cancel the purchase of a house, either single houses, rowhouses, and flats, and they must return all the money to the buyers. However, if the cancellation was not on the developer’s negligence, they may collect 10 percent of the payment plus tax fees.

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