Real Estate
Rights and Obligation of Owner and Tenant in a Condominium or Strata Title Unit

Rights and Obligation of Owner and Tenant in a Condominium or Strata Title Unit

Condominium is a multistory building for residential purpose, which every unit of it can be owned separately. As a residential building that can be owned separately, tenants of condominium have boundaries in making use of spaces and facilities inside of condominium. In a condominium there are common equipment, common facility, and common land. Those things are shared rights of a condominium which cannot be owned individually because they are one functional unit of condominium that cannot be separated.

Owner and/or tenant of a strata title unit has rights and obligations that are regulated by Government Regulation No. 4 of 1988 on Condominium (the “GR No. 4 of 1988”). Some of the regulations are mentioned below.

Article 61 GR No. 4 of 1988,

Paragraph (1)

Every tenant has the right to:
make use of condominium and its environment including common equipment, common facility, and common land safely and orderly;
to get protection as stated in its Article of Association and Bylaws;
to choose and be appointed as the management of Tenant Association.
Paragraph (2)

Every tenant has the obligation to:

obey and execute the regulation in a condominium and its environment in accordance with its Article of Association and Bylaws;
pay the contribution for management and fire insurance premium;
take care of the condominium and its environment including the common equipment, common facility, and common land.
Paragraph (3)

Every tenant is prohibited to:

act or do something which can endanger the security, the order, and the safety of other tenants, building and its environment;
modify the shape and/or adding building parts outside their strata title unit without the permission of the Tenant Association.
Other right which is not regulated in the paragraph mentioned above is that tenant who is also a member of Tenant Association has the right to vote. Tenant can use their right to vote in a General Meeting of the Tenant Association.

The right to vote consists of 3 (three) categories, as follows:

1. Residential Vote (Hak Suara Penghunian)

This is the right of member of Tenant Association to vote in order to determine issues on condominium’s order, the use of facility, and the obligation to pay contribution for management and fire insurance premium for shared rights such as common equipment, common facility and common land. Every owner of strata title unit can only cast one vote.

2. Management Vote (Hak Suara Pengelolaan)

This is the right of member of Tenant Association to vote in order to determine issues on maintenance, renovation, and the development of environment infrastucture, including social facilities, common equipment, common facility, and common land. Management Vote is counted according to its proportional comparative value from every strata title unit.

3. Ownership Vote (Hak Suara Pemilikan)

This is the right of member of Tenant Association to vote in order to determine issues on the relationship between tenant, the appointment of management of Tenant Association, and expenses of strata title unit. Ownership Vote is counted according to its proportional comparative value from every strata title unit.

According to the explanation above, every owner and/or tenant of strata title unit has rights and obligations which have been regulated by law. These regulations has a binding power with legal sanction, especially for obligations, which has to be executed by the owner and/or tenant of strata title unit.

The legal sanction related to tenant’s obligations is regulated under Article 77 GR No. 4 of 1988. Article (1) from the paragraph says, “anyone who violates the provisions of Article 30, Article 31, Article 34, Article 35 paragraph (1) and paragraph (3), Article 38 paragraph (2), Article 39 paragraph (1), Article 61 paragraph (2) and paragraph (3) and Article 67, is charged with a maximum inprisonment of 1 (one) year and/or a maximum fine of Rp.1.000.000,- (one million Rupiah).

Ardhityo Rompas

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Strata Title Ownership for Foreigner and Foreign Entity in Indonesia

Strata Title Ownership for Foreigner and Foreign Entity in Indonesia

Indonesia as a developing country is one of the investment destination for developed countries to expand their global business activities. That is why more foreigners domiciled in Indonesia to do their business. However, there are boundaries or conditions for foreigner to own a residence especially a strata title, which is going to be discuss further here.

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The Legal Status and Power of Tenant Association

The Legal Status and Power of Tenant Association

In a strata title concept, there is unit of strata title that can be owned separately and also jointly common equipment, common facility, and common land in line with the calculation of the proportional comparative value. That is why there should be a regulation on utilization and management by Tenant Association (Perhimpunan Penghuni) as a legal entity that will be responsible to manage the shared interest of owners and strata title tenants.

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Legal Aspects on Strata Title Super Block Development in Indonesia

Legal Aspects on Strata Title Super Block Development in Indonesia

In Indonesia the property conglomorates has been intensive in developing the superblock. There is a Lippo Group that builds Kemang Village and St. Moritz. We also have Ciputra Group that builds Ciputra World, in Surabaya and Jakarta. We have Agung Podomoro Group that builds Podomoro City in Tanjung Duren area and there are so many other projects that are undergoing now.

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