22 December 2020

The Importance of Knowing About Building Rights Certificates

Real Estate Developer Indonesia - For some people, the name Building Use Right (HGB) is not a strange thing to hear, especially those who are looking for a house at an exhibition for example. Yes, this building use right certificate is often one thing that needs to be known in detail so that you don't regret it later, especially for those of you who want to buy a house.

However, do you know what is meant by Building Rights Title? This is important to prevent problems in the future. Especially if you are interested in opening a business and constructing a building, the Right of Use of Building must be fully understood. Here is a brief explanation.

What is the Right to Build (HGB)?

As the name implies, Building Use Right (HGB) is an authority granted by the government or an acquired right to use a land that is not one's own for a period of 30 years at the request of the right holder binding to the needs and conditions of the buildings and can be extended for a maximum period of 20 years.

This means that the holder of the certificate is only authorized to utilize the land for building or other purposes for a certain period of time. So, property owners with Building Rights Title status only own the building, while the land is still owned by the state.

Generally, developers will use HGB land to create housing units or apartments. Another purpose is when you plan to own a property for temporary use. So what you need to remember is that you own the Right to Build (HGB), not the Title to the land or property you occupy.

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What is the difference between Building Rights Title and Property Rights?

It should be noted that there is a big difference between building use right (HGB) and ownership right (HM). Ownership Right (HM) can be inherited and has no time limit on ownership, whereas building use right (HGB) has a time limit and is allowed to be extended.

A certificate of ownership can be used as collateral to a financial institution such as a bank if you want to apply for a loan. However, this cannot be done if you only have a Building Rights Title certificate. Therefore, if you want to stay in the building and land for a long time or plan for long-term investment, you should buy a property status with a ownership certificate.

Get to know the advantages and disadvantages of owning a building use right certificate

At first glance, HGB is actually similar to the lease system. In the lease system, there are definitely advantages and disadvantages that will be obtained by a prospective owner of the Building Rights Title. The most basic and obvious advantage that will be obtained by the owner of the HGB is that it does not require large funds when compared to ownership of a certificate of ownership.

In addition, if you are an entrepreneur, then business opportunities are more wide open. This is because properties with building use right (HGB) status are usually an option for those who are interested in owning a property but do not intend to occupy it for a long time.

How, have you understood what Building Rights Title is? Indeed, this should be studied in detail and in detail considering that its purpose is so great, namely to prevent unwanted things from happening in the future. In addition, the introduction of a Building Rights (HGB) Title certificate is one thing that needs to be owned.

 

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