The Urgency of Legal Protection for Consumers in Case of House Selling Developer Breach Through Bank Credit Agreements

DOI

10.2991/978-2-38476-180-7_72How to use a DOI?

Keywords

Kata kunci: Agreement; credit; default

Abstract

The desire to own a residential home is prevalent among many individuals. To fulfill this aspiration, businesses have emerged to assist individuals or groups in realizing their dream of homeownership. As a financial intermediary, banks play a crucial role in providing credit to those seeking home ownership, particularly through house construction projects. However, practical challenges have been observed in cases where houses are not fully completed, leading to default by the developers. To address such issues, an Agreement for Sale and Purchase (PPJB) is established as an initial understanding. In providing home ownership loans, banks do not necessarily provide credit just like that without regard to the guarantees provided by the debtor. This is to guarantee the credit that will be obtained by the debtor. The question posed in this article is: What is the process for purchasing and selling homes using a bank credit system? What are the legal repercussions of a developer defaulting on a loan to purchase or sell a home? A statutory and conceptual approach is applied in this study's normative legal research technique. As stated in Article 19 paragraph (3) of the Consumer Protection Act, the procedure for granting credit with a bank credit system to facilitate transactions is that the bank applies the 5 C principle, which includes Character, Capacity, Capital Collateral, Economic Condition, and the form of Consumer Losses can be used to sue Developers for Compensation to General Courts. Recompense in the form of costs, damages, and interest in accordance with the guidelines of Article 1246 of the Civil Code that result from mistakes and illegal behavior. Developer accountability takes the form of paying the money collected plus interest and other expenses.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - I Made Aditya Mantara Putra
AU  - Annisa Annisa
AU  - P. Anak Agung Ima Cahyaning Amelyeana
PY  - 2023
DA  - 2023/12/31
TI  - The Urgency of Legal Protection for Consumers in Case of House Selling Developer Breach Through Bank Credit Agreements
BT  - Proceedings of the International Conference on “Changing of Law: Business Law, Local Wisdom and Tourism Industry” (ICCLB 2023)
PB  - Atlantis Press
SP  - 666
EP  - 677
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-180-7_72
DO  - 10.2991/978-2-38476-180-7_72
ID  - Putra2023
ER  -