Letter of cancellation of sale and purchase of land is a letter in which the land owner cancels the purchase or transaction with the land buyer. In this case based on PP No. 10 of 1961 explains that only the parties can cancel the sale and purchase deed of land before the PPAT or if one of the parties wants to cancel the sale and purchase deed must submit an application (lawsuit) through the District Court.

Then what are the methods and examples of canceling the sale and purchase of land? The following is a detailed explanation that you can find in this article:

  • Sample Letter of Cancellation of Sale and Purchase of Land
  • Reasons for Cancellation of Land Sale and Purchase
  • Land Purchase Cancellation Procedure
  • Consequences of Land Purchase Cancellation

The following is a detailed explanation regarding the letter of canceling the sale and purchase of land and its requirements which you can see below.

Sample Land Sale Cancellation Letter

In canceling the sale of land, you can submit a letter first to the buyer. As a preliminary in canceling the sale and purchase of the land. Here is an example of a land sale cancellation letter as below:

Reasons for Cancellation of Land Sale and Purchase

The reasons for canceling the sale and purchase of land can include several reasons. Some of the reasons could be as follows:

  • There has not been a free agreement between the parties who made the agreement, whether due to an oversight, coercion or fraud on one of the parties to the agreement at the time the agreement was made (Article 1321 to Article 1328 of the Civil Code)
  • One of the parties to the agreement is incapable of acting within the law (Article 1330 to Article 1331 of the Civil Code), and/or does not have the authority to take certain legal actions or actions. In the event that a free agreement does not occur, the party who has made a mistake, was forced, or was deceived, has the right to ask for the cancellation of the agreement when he knows that the error, coercion, or fraud has occurred.
  • Incompetent parties and/or their legal representatives have the right to request cancellation of the agreement. In this case, it can be categorized as Article 1330 – 1331 of the Civil Code, so other heirs can request an annulment for reasons where the sale is made when the seller's heirs do not have the authority to sell the land as an inheritance that has not been divided.
  • In the absence or late payment of land sale and purchase payments from the buyer, the land seller as the land owner can cancel due to underpayment from the buyer which is past the maturity date of the agreed agreement.

Those are some of the reasons for canceling the sale and purchase of land. If you are not interested in buying land and prefer a finished house. The following is a list of residences in the Cinere area, Depok under Rp. 1 billion which can be your reference!

Land Purchase Cancellation Procedure

Procedures for canceling a sale and purchase can be carried out. For example in the PPJB, it is often determined before an agreement is concluded, a warning must first be given. Parties who do not fulfill their achievements to carry out their obligations can be given a warning. This warning can be done two or three times.

If the warning is still not heeded, then one of the parties can immediately terminate the agreement. Giving this warning is in line with the Civil Code, namely by ingebrekestelling, namely by issuing a deed of negligence by the creditor. In Article 1238 of the Civil Code, a subpoena (with various exceptions) is in principle necessary to be able to terminate a contract agreement.

Consequences of Land Purchase Cancellation

If there is a unilateral cancellation of the land sale and purchase agreement, the consequences for both parties are as follows:

  • The end of an agreement and as long as it is needed the parties can escape from the things that have been specified in Article 1266 and Article 1267 of the Civil Code, and the seller is obliged to return the amount paid by the buyer after deducting a few percent of the selling price set as a form of compensation of the costs incurred by the seller with the addition of fines that need to be paid by the buyer to the seller.
  • The parties may be subject to fines, the amount of which is adjusted to the mutual agreement, which must be paid by the buyer to the seller or vice versa, for each day of delay, which should be paid all at once. The responsibility of the parties for their actions is the obligation of each party