hak tanggungan
Also called: tanggungan
Debt collateral on land or a house registered with BPN.
What it means
Hak tanggungan is a guarantee for debt repayment charged on land rights, along with buildings and other objects attached to them. In property credit, the bank holds the hak tanggungan so that it can execute the collateral if the debtor defaults. This right is born through the making of an APHT and its registration. As long as the debt is not yet paid off, the hak tanggungan generally remains attached.
Why it matters for families
The existence of a hak tanggungan limits the family's ability to sell or re-pledge the property without settlement and roya. If this is not understood, plans to move house or refinance can stall midway. The family also needs to know that a hak tanggungan gives the bank a strong position in the event of default.
Example
For example, the remaining home credit is still running and the family wants to sell it. Prospective buyers usually ask for a property free of hak tanggungan, so the sale is often carried out after settlement or through a mechanism agreed with the bank. Plan the settlement and roya costs before putting up a sale listing.
Common misunderstanding
Some assume the hak tanggungan automatically disappears once the credit is paid off. The correction: a roya process and deregistration are needed so that the collateral status is truly clean.