3 Modes Often Encountered in House Buying and Selling Fraud Cases

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By:

Team of Hukumindo

Previously, the www.hukumindo.com platform has talk about "Not Receiving a Dime in Royalties, K-Pop Artists Sue Agencies", "YouTuber Arrested After Visiting Isolated Tribe Island", you may read also "Giant US Tuna Company Sued for Alleged Abuses in Its Supply Chain" and on this occasion we will discuss about '3 Modes Often Encountered in House Buying and Selling Fraud Cases'.

Along with the development of the property market, the mode of fraud in buying and selling houses is also increasingly rampant. Several prospective buyers or sellers become victims, due to their negligence and lack of knowledge. The mode can occur in various forms. Therefore, it is necessary to be careful not to get caught in a fraud that is detrimental. Here are 3 modes that are often found in cases of fraud in buying and selling houses, in Indonesia:[1]

1. House Has Been Sold, But Developer Has Not Completed Initial Land Purchase. The most common mode that occurs today is that many developers do not complete the initial land purchase, but the house has been built and sold to consumers. In addition, many developers sometimes sell buildings that are still empty land. In fact, according to applicable regulations, before selling it, the developer should have built at least 20% of the building first. This will violate Law Number 1 of 2011 which regulates housing and residential areas.
2. Withdrawing Funds from Consumers Not in Accordance with the Rules. There are also cases where unscrupulous developers will withdraw funds from consumers more than the established regulations, namely 80%. Usually, developers withdraw payments in full. Even though they have not met the requirements mentioned above. This will certainly harm the community. Unscrupulous developers who violate the law can be subject to threats. The witness is a one-year prison sentence and a fine of IDR 1 billion.
3. Developers Provide Brochures with Inappropriate Specifications. Another common fraud mode in home buying and selling involves developers providing brochures or promotional materials with specifications that do not match reality. In this case, developers will generally offer houses at attractive prices and list various facilities and advantages that seem tempting. Starting from the size of the building, the quality of the materials, to the strategic location. However, in reality this does not match what is in the field. This also violates the law, and developers can be fined up to IDR 5 billion or subject to additional criminal penalties, in the form of rebuilding housing according to the specifications in the brochure.

Learning from the cases above mentioned, the public is urged to be careful before making house buying and selling transactions, as not to be tempted and deceived afterwards. And if you have any legal issue in Indonesia territory, contact us for business inquiry, feel free in 24 hour, we will be glad to assist you. 

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

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Reference:

1. "Begini Modus Tipu-tipu Jual Beli Rumah, Hati-hati!", www.detik.com., 10 Apr 2025, 10 April 2025, Diakses pada tanggal 14 April 2025, Link: https://www.detik.com/properti/tips-dan-panduan/d-7862011/begini-modus-tipu-tipu-jual-beli-rumah-hati-hati.