Buying Property Still Under Inheritance: What You Need to Know

Purchasing property that is still in the process of inheritance can be an attractive opportunity, especially when the price is lower than market value. However, it also carries significant legal and financial risks if not handled carefully. Understanding the procedures, documents, and potential challenges will help you make a safe and informed decision.

1. What Is Inherited Property?

Inherited property refers to land or a house whose legal ownership has not been fully transferred from the deceased to the heirs. During this stage, the heirs collectively hold rights to the property, but they cannot legally sell it until the inheritance process is completed.

2. Common Risks When Buying Inherited Property

Buying property that is still in the process of inheritance involves several risks:

a. Unclear Ownership

If the heirs have not completed the inheritance transfer, the property still legally belongs to the deceased. This makes the transaction invalid until ownership is formally transferred.

b. Disputes Among Heirs

Family members may disagree on the sale, price, or distribution of assets. Such disputes can delay or cancel the property transaction.

c. Hidden Debts or Claims

Creditors or extended family members may claim rights to the property, creating potential legal complications for the buyer.

d. Fraud or Misrepresentation

There is a risk that someone who claims to be an heir is not legally recognized, or that documentation is falsified.

3. Key Documents You Should Verify

Before agreeing to buy inherited property, ensure the following documents are complete and legally valid: Death Certificate of the original owner, Certificate of Inheritance (Surat Keterangan Waris / SKW or equivalent), Land/House Ownership Certificate (SHM, SHGB, or relevant title), Heirs’ Agreement Letter stating unanimous consent to sell the property, Power of Attorney, if one heir represents the others, Proof of Tax Payments for the property (PBB). Always verify these documents at the local land office or with a trusted legal professional.

4. How to Buy Property Under Inheritance Safely

a. Ensure All Heirs Agree to the Sale: the sale can only proceed if every legal heir provides written consent. Missing signatures can invalidate the transaction.

b. Complete the Inheritance Transfer First: The safest option is to ask the heirs to first transfer the title to their names at the land office. Once the certificate is updated, the sale can proceed smoothly.

c. Use a Notary or Legal Professional: A licensed notary plays a crucial role in verifying documents, drafting agreements, and ensuring compliance with inheritance laws.

d. Make Payments Through Escrow or Notary Account: This protects you from paying before the legal process is complete.

e. Avoid Cash Transactions: Always use traceable payment methods for security and documentation.

5. Final Recommendations

Buying inherited property can be a good investment, but it requires thorough due diligence. Never rush the process or rely solely on verbal agreements. Work with professionals, confirm all documents, and ensure the inheritance transfer is completed before finalizing the purchase.