DISPUTE RESOLUTION BETWEEN PROPERTY DEVELOPERS AND PURCHASERS IN HOUSING CREDIT DEFAULT CASES INVOLVING BUYBACK GUARANTEE MECHANISMS
Research Division, Indonesian Advocates Association (PERADI)
DOI:
https://doi.org/10.56943/jlte.v4i3.841This research examines dispute resolution mechanisms between property developers and purchasers in cases of housing mortgage default that trigger buyback guarantee provisions. The primary challenge confronting purchasers involves their inability to sustain mortgage installment payments, resulting in the termination of sale and purchase agreements due to failure to settle mortgage obligations and associated liabilities. Employing a dual methodology of normative and socio-empirical juridical analysis, this study elucidates the tripartite legal relationships established within buyback guarantee agreements between developers, financial institutions, and purchasers. The findings identify critical legal issues, including the absence of specific statutory regulation, unequal bargaining power, unclear property valuation methods, inadequate notification procedures, and limited access to dispute resolution for purchasers. These deficiencies often lead to procedural unfairness and contravene the principle of good faith. The study concludes that the current framework, partially based on the Indonesian Civil Code, is insufficient for modern mortgage complexities. Therefore, it recommends regulatory intervention by the Financial Services Authority (OJK) to establish clear guidelines on obligations, valuation standards, and mandatory mediation or arbitration clauses. By harmonizing contractual freedom with consumer protection principles, these reforms aim to transform the buyback guarantee into a fairer and more transparent mechanism, ensuring equitable outcomes for all stakeholders in Indonesia's housing finance sector.
Keywords: Buyback Guarantee Dispute Resolution Housing Mortgage Real Estate Sale and Purchase Binding Agreement
Arner, Douglas W., Janos Nathan Barberis, and Ross P. Buckley. “The Evolution of Fintech: A New Post-Crisis Paradigm?” SSRN Electronic Journal 72, no. 1 (February 12, 2015): 291–324. https://onlinelibrary.wiley.com/doi/10.1111/jofi.12439.
Breza, Emily, and Andres Liberman. “Financial Contracting and Organizational Form: Evidence from the Regulation of Trade Credit.” The Journal of Finance 72, no. 1 (February 12, 2017): 291–324. https://onlinelibrary.wiley.com/doi/10.1111/jofi.12439.
Cai, Jie, Moon H. Song, and Ralph A. Walkling. “Anticipation, Acquisitions, and Bidder Returns: Industry Shocks and the Transfer of Information across Rivals.” Review of Financial Studies 24, no. 7 (July 2011): 2242–2285. https://academic.oup.com/rfs/article-lookup/doi/10.1093/rfs/hhr035.
Campbell, John Y, and João F Cocco. “A Model of Mortgage Default.” The Journal of Finance 70, no. 4 (August 23, 2015): 1495–1554. https://onlinelibrary.wiley.com/doi/10.1111/jofi.12252.
Foote, Christopher L., Kristopher Gerardi, and Paul S. Willen. “Negative Equity and Foreclosure: Theory and Evidence.” Journal of Urban Economics 64, no. 2 (September 2008): 234–245. https://linkinghub.elsevier.com/retrieve/pii/S0094119008000673.
Gerardi, Kristopher, Kyle F. Herkenhoff, Lee E. Ohanian, and Paul S. Willen. “Can’t Pay or Won’t Pay? Unemployment, Negative Equity, and Strategic Default.” The Review of Financial Studies 31, no. 3 (March 1, 2018): 1098–1131. https://academic.oup.com/rfs/article/31/3/1098/4430495.
Hall, Mark A., Lilli Mann-Jackson, and Scott D. Rhodes. “State Preemption of Local Immigration ‘Sanctuary’ Policies: Legal Considerations.” American Journal of Public Health 111, no. 2 (February 1, 2021): 259–264. Accessed April 25, 2025. /doi/pdf/10.2105/AJPH.2020.306018?download=true.
Iancu, Bogdan. “The Evolution and Gestalt of the Romanian Constitution.” In The Max Planck Handbooks in European Public Law, 493–548. Oxford University PressOxford, 2023. https://academic.oup.com/book/46456/chapter/407755537.
Jonaedi, Efendi, and Johnny Ibrahim. Metode Penelitian Hukum: Normatif Dan Empiris. Perpustakaan Nasional: , 2018. Accessed May 20, 2025. https://books.google.co.id/books?id=5OZeDwAAQBAJ&printsec=copyright&hl=id#v=onepage&q&f=false.
Poespasari, Dr. Ellyne Dwi, and Afga Samudera Erlangga. “The Jurisprudential Role in Resolving Customary Inheritance Disputes.” Journal of Law Theory and Law Enforcement (September 26, 2025): 1–23. https://journal.jfpublisher.com/index.php/jlte/article/view/819.
Randy, Tengku Ocvan. “Tinjauan Yuridis Buy Back Guarantee Sebagai Alternatif Terhadap Penyelesaian Debitur Bermasalah Atas Kredit Pemilikan Rumah Bersubsidi Pada Bank (Studi Pada Bank Di Sumatera Utara).” Ilmu Hukum Prima (IHP) 5, no. 1 (April 25, 2022): 89–107. http://jurnal.unprimdn.ac.id/index.php/IHP/article/view/2532.
Sinjaya, Andi, and Janaek Situmeang. “The Concept of Habeas Corpus Act in Regulating The Legality of Suspects’ Determination As An Object of Pretrial in Indonesia.” Journal of Law Theory and Law Enforcement (March 21, 2025): 1–10. https://journal.jfpublisher.com/index.php/jlte/article/view/733.
tom Dieck, M. Claudia, Timothy Hyungsoo Jung, Woo Gon Kim, and Yunji Moon. “Hotel Guests’ Social Media Acceptance in Luxury Hotels.” International Journal of Contemporary Hospitality Management 29, no. 1 (January 9, 2017): 530–550. http://www.emerald.com/ijchm/article/29/1/530-550/124973.
Tyas, Hesti Ning, Sukarmi Sukarmi, and Patricia Audrey. “Status Hukum Perjanjian Beli Kembali (Buy-Back Guarantee) Yang Diberikan Oleh Developer Pailit Kepada Bank.” Jurnal Ilmiah Pendidikan Pancasila dan Kewarganegaraan 7, no. 2 (July 15, 2022): 438. http://journal2.um.ac.id/index.php/jppk/article/view/26370.
Wahyudin, Ahmad Fahmi, and Dossy Iskandar Prasetyo. “Legal Protection of Football Match Spectators in Indonesia.” Journal of Law Theory and Law Enforcement (April 11, 2025): 11–24. https://journal.jfpublisher.com/index.php/jlte/article/view/737.
Wignjosoebroto, Soetandyo. Hukum : Paradigma Metode Dan Dinamika Masalahnya / Soetandyo Wignjosoebroto | Perpustakaan Mahkamah Konstitusi, 2002. Accessed October 8, 2025. https://simpus.mkri.id/opac/detail-opac?id=9266.
