The Right Time for the Extension of Your Land with Building Rights Status
When is The Right Time for the Extension of Your Land with Building Rights Status? The Building Rights (Hak Guna Bangunan) is an authority granted by the government to those to use a piece of land that is not their own.
Owners of land certificates with the status of Building Rights (Hak Guna Bangunan) are given the right to empower the land either to construct buildings or for other purposes within a certain period of time.
Referring to Indonesian Act. Number 5 of 1960 concerning The Basic Agrarian Regulations Article 35, Building Rights is granted for a maximum period of 30 years. However, it can be extended for a maximum of 20 years at the request of the right holder considering the needs and conditions of the building.
The application for an extension of the term of the Building Rights or its renewal shall be submitted no later than two years prior to the expiration of the term of the Building Rights or its extension.
The rules regarding the extension period of Building Rights are contained in Article 27 of Government Regulation Number 40 of 1996 concerning Cultivation Rights, Building Use Rights and Land Rights.
As an information, there are three types of land that can be granted with Building Rights, namely the government/state land, management rights, and property rights.
If the Building Rights certificate expires but the holders have not arranged the extension, then the land status will back become the state property.
If the Building Rights on a state land is not renewed, the former Building Rights holder is obliged to dismantle the building and objects on the land. Then, the land must be handed over to the state in a vacant condition no later than a year after the Building Rights is expired.
The former Building Rights holders are also required to fulfill the conditions agreed in the land use agreement with management rights or in the agreement for granting Right of Building over proprietary land.
The extension or renewal of Building Rights certificate can be procced at the local National Land Agency.
