Families often only think about selling land left by their parents years later. Some need the money, some live far apart and can’t look after the plot, and some simply want the inheritance settled fairly.

One thing needs to be clear from the start. Inherited land cannot be sold by one person alone, even the eldest child or the one who has looked after the land all along.

This guide is for families who want to sell inherited land or a house properly, and for buyers who want to be sure the purchase is safe.

Every heir has to agree

Until the estate is divided, inherited land belongs jointly to all the heirs. So the sale has to be agreed and signed by every heir before the Pejabat Pembuat Akta Tanah (PPAT, the official who draws up land deeds).

An heir who can’t attend can give a power of attorney to another heir. Ask the PPAT which form of power of attorney they accept before it is drawn up, so it doesn’t have to be redone.

If one of the heirs has died, their share passes to their own heirs. Those people then also have to agree.

Look at the status of the land while the deceased was alive, too. If it was acquired during their marriage, it is joint marital property (harta bersama), and the surviving spouse has a right of their own in it. This is explained in our guide to marital property rules when buying and selling.

Selling quietly without some of the heirs almost always ends badly. The heirs left out can sue, and the buyer can be dragged in.

Documents that show who the heirs are

Every step rests on a document that establishes who the heirs are, usually called a surat keterangan waris (statement of heirs). Its form differs with the family’s background: a letter acknowledged by the lurah and camat, a notarial deed, or a court ruling. A notary or PPAT can tell you which form applies to your family.

The documents usually requested are:

  • The death certificate of the deceased, from the civil registry office (Disdukcapil).
  • The statement of heirs, or an equivalent document establishing the heirs.
  • Family card and ID cards of all the heirs.
  • The marriage book of the deceased, if they were married.
  • The original land certificate and the latest receipt for the Pajak Bumi dan Bangunan (PBB, the annual land and building tax).

Transferring a certificate by inheritance is covered step by step in our guide to registering an inherited certificate.

If the land has no certificate and rests only on a segel or a Surat Keterangan Tanah (SKT, a village land letter), it’s a different matter. The history of possession has to be made clear first, and the route to registration discussed with the Kantor Pertanahan (the local land office).

The order: register the inheritance, then the sale

The usual order is:

  1. The transfer by inheritance is registered at the land office, so the certificate is recorded in the heirs’ names.
  2. All the heirs sign the Akta Jual Beli (AJB, the deed of sale) before the PPAT as sellers.
  3. The transfer to the buyer is registered at the land office on the basis of that AJB.

The third step is what makes the buyer the recorded owner. Under Government Regulation (PP) No. 24 of 1997, a transfer by sale can only be registered on the basis of a deed made by a PPAT.

The PPAT decides the exact order based on your documents. So see a PPAT before you look for a buyer. You’ll learn which documents are missing and roughly how long the process takes, and you can make realistic promises to a buyer.

Taxes at each stage

Selling inherited land involves two events, and each has its own tax.

  • When the land passes to the heirs, they usually pay the Bea Perolehan Hak atas Tanah dan Bangunan (BPHTB, the acquisition duty). The tax-free allowance and any reductions are set by each regency or city’s regulation (Perda).
  • When the land is sold, the heirs as sellers pay a final income tax (PPh final) of 2.5 percent of the gross sale value, under PP No. 34 of 2016.
  • The buyer pays BPHTB on the purchase, at most 5 percent of the transaction value after the tax-free allowance, under Law No. 1 of 2022 on central and regional government finances.

Clear any unpaid PBB before you start, because the receipts are asked for at several stages.

Worked example (illustrative numbers only): the inherited land sells for Rp 600 million. The 2.5 percent PPh comes to Rp 15 million, paid out of the proceeds. If other shared costs come to, say, Rp 10 million, Rp 575 million is left to divide among the heirs.

The taxes on a property sale are explained in general in our guide to taxes when buying and selling property. For the exact figures in your area, ask the PPAT and the local revenue office.

Heirs who are minors, live abroad, or disagree

Some situations need extra steps:

  • An heir who is a minor. A child’s share can’t simply be sold by a parent or relative. The sale needs a court decision on guardianship.
  • An heir living abroad. They can give a power of attorney legalised at an Indonesian embassy or consulate. Get the wording from the PPAT first, then send it to be signed.
  • Heirs who don’t agree. Start with a family discussion, with a mediator everyone respects if needed. If that stalls, mediation and the courts are available, but they take time and money.

There is also a middle way worth considering. The heir who wants to keep the land can buy out the others’ shares at an agreed price.

Put the division of the money in writing

Inheritance quarrels often start after the money arrives, not before. So agree on the division in writing before the land is marketed.

The agreement should cover:

  • Each heir’s share, as a percentage or an amount, following the inheritance law the family uses or a joint agreement.
  • Costs deducted first, such as the PPh, the PPAT’s fee, any agent’s commission and unpaid PBB.
  • The lowest price everyone accepts, so no single person decides alone.
  • Who represents the family in dealings with the buyer or agent.
  • The receiving account and the timing of the split once payment arrives.

Have everyone sign the agreement, ideally before a notary. Keep the transfer slips and receipts for every payout.

What a buyer should check

If you are buying inherited land, check these before any money changes hands:

  • The list of heirs in the statement of heirs, matched against everyone who will sign the deed.
  • Powers of attorney from absent heirs, including legalisation if signed abroad.
  • A court decision if any heir is a minor.
  • The certificate check done by the PPAT at the land office, including any block or seizure.
  • Who occupies the land now, and whether anyone else claims it.

Don’t pay in full to one heir before every signature is in place. If you pay a booking deposit, get a receipt stating that the deal depends on the consent of all the heirs.

Next steps

  1. Gather the death certificate, the statement of heirs, the family card and ID cards of all heirs, the certificate and the PBB receipts.
  2. Hold a family meeting and write down the agreed division.
  3. See a PPAT to settle the order of steps and fill any gaps in the documents.
  4. Only then put the land on the market.

Once the family has agreed to sell, the land or house can be listed through Vorneo’s titip jual page.