Definition and Conditions for obtaining the right to use the apartment building

Now in the purchase of vertical housing, usually also consider the right to use apartment buildings. In addition to being able to increase the value of the property, it is also one of the certificates of ownership of the apartment in addition to the certificate of ownership.

So what is the meaning of the right to use an apartment? how to get the pluses and minuses of buying a HGB apartment? Check the answer in the following review:

Definition and extension time HGB

In the purchase of an apartment, there are four types of certificates, namely building use rights (HGB), building ownership certificates, land management rights and the title of layer

HGB is often the target of apartment residents because it is just a certificate of building rights. Apartments are different from detached houses, which have a limited plot of land and are high up.

According to article 35 paragraph 1 of the main agricultural law n. 5 of 1960 is the right to establish or own a building on land that does not belong to him for up to 30 years.

When the validity period expires, the HGB certificate can be extended. Before maturity, the certificate must be extended up to 20 years. Extensions are submitted a maximum of two years before maturity.

When the ownership period ends and has not been extended, the state returns to the government or the original owner before the building is demolished or vacant for a period of 1 year.

HGB can be amortized when the period expires or is released by the right holder before the expiration of the term. HGB can also be amortized if it is canceled in the public interest or abandoned or land has been destroyed.

HGB voters can only apply to Indonesian citizens. Meanwhile, if the owner is a foreign citizen, the ownership status is only the Right to Use. So the reason for the HGB itself there are several things, namely:

1. HGB on state land results from a decision to grant rights by the Minister of Agrarian Affairs and appointed officials
2. HGB is a gift from the holder of property rights with a deed of agreement from the Land Deed Making Officer
3. HGB for management rights resulting from the decision to grant rights by the Minister of Agrarian Affairs and officials appointed on the proposal of the holder of the management right

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HGB apartment conditions

The HGB extension process itself takes 30 working days for land < 2000 square meters. If it is more than that area with an area of ​​up to 150,000 square meters, it will take 49 working days.

If the surface of the land > 150,000 square meters, then it takes 89 days. The necessary conditions to extend HGB are the following:

• Application form for the extension
• Photocopy of the applicant’s identity card (KTP) and family card
• Original HGB certificate
• Attorney for the authorized
• Copy of the PBB SPPT of the current year
• Proof of income payment
• Photocopies of the ratification of the legal entity and the deed of establishment that have been verified for authenticity

The way to extend the HGB starts by coming directly to the BPN office listed on the certificate. First, fill out the renewal form at the BPN office.

Prepare the required documents and go to the payment counter. This fee is paid for the inspection of the land and the registration of property rights.

After this, the BPN issues a Decree on the extension of the Term of the RI BPN, the Decree on the extension of the Term of the Regional Office, until the Registration of Rights and Issuance of Certificates.

How much does it cost to renew the HGB certificate of an apartment?

The HGB renewal rates are listed in PP No. 46 of 2002. The PP states that the period for the extension of the HGB will be divided into the initial permit and then multiplied by 1%.

The result of the multiplication will be deducted from the Land Acquisition Value (NPT) and the Non-Refundable NPT and then multiplied by 50%. The formula used is:

HGB Flat Renewal Fee = ((Extension Period: Initial Permit Period) X 1%) X ((NPT — NPT TKUP) X 5%)

To better understand the calculation, it is good to see the case example below first!

The apartment consists of 1500 units with a NJOP of about Rp. 12,000,000 per square meter. The total NPT of about 2 hectares is Rp. 350 billion then the calculation is:

Formula: (20 years: 30 years) x 1% = 0.0067

Covered renovation costs: (0.0067 x Rp. 350 billion) x 50% = Rp. 1.1 billion

Cost of each unit: Rp. 1.1 billion: 1500 units = Rp. 733,333

Also read:

Plus Minus Buy HGB Apartments

Not a few say that HGB apartments are more profitable than SHM certified properties. The advantages and disadvantages of HGB apartments can be seen in this table.

Advantage	Deficiencies
Low maintenance fee compared to SHM	The limited period is 30 years and can only be extended to 20 years
Great business opportunity because HGB apartments are often used as temporary residences	He does not have all the rights to change or convert the building without the permission of the grantor HGB
It may be owned by persons or legal entities domiciled in Indonesia

HGB apartments offer flexibility because they can be owned by individuals or legal entities. Although it has a limited duration, the business opportunity is greater.

Also, in terms of cost, it is proven that the right to use an apartment is cheaper than a certificate of ownership. That is why many apartment owners buy HGB properties especially on easy terms.

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