ABSTRACT

ABSTRACT.

     Agrarian Law (Law No. 5 of  the year of 1960) stipulates under article 5 that agrarian law is custom law. One of custom law principle is the application of  horizontal separation principle under its agrarian law.

     The use of vertical principle on the Development of Apartment by Condominium System Way in Indonesia especially about Aspect of the Strata Unit Right of Apartment in the Sphere of Land and Property Law as be regulated in article of the 8 of Condominium Law caused that all legal actions upon Strata Unit Right of the Apartment based on the study of normative and empirical way becoming inconsistent with horizontal separation principle. Therefore, there are coming up some issues such as aspect of land ownership on strata unit of Apartment becoming   inconsistent  (by normative way (Law of Condominium) as well as by empirical way) to apply  horizontal separation principle by the use of land law, the strata unit right of Apartment to be placed as land register object as regulated by article the 3 of the government regulation No. 24 of 1997 regarding land register and Bank is so difficulty to accept mortgage of the strata unit right of Apartment  with the use of strata title concept.

     Researches exposed that if horizontal separation principle to be implemented by separation between land and building in the Development of Apartment will be problem to buyer candidates. Its means the buyers could be doubt and are not interested to buy strata unit of Apartment, so it could be problem for developer. Therefore, aspect of land ownership on such strata unit right should be consistent look like article 6 of law No. 4, 1992 regarding Real Estate Law, so Condominium Law should be  consistent  by strata title system where it could be communal ownership by horizontal beside ownership by vertical or back to accession  principles ( article of  the 571 of Civil Law) especially for big cities where their land becoming difficulty  or systems of land management/land banking/land advance acquisition/leasehold .Beside that,  replacing  strata unit right  of apartment  as land register object could be  not clear and clean  upon its land ownership. Its implication,  it could be conflict of interest  or legal dispute among owners of  the strata unit right  of Apartment. Therefore,in the future  there is needed separation certificate land and building upon strata unit right  of Apartment, including its land and building tax. In practical way, Bank is so difficulty to accept mortgage of strata unit right of Apartment with the use of strata title concept because there is  no supporting regulation yet. So it could be risk to Bank because it could be difficult to be executed by court if debtor break of  law.

     As conclusion of this research result that horizontal separation principle could submit solution to prevent and avoid  conflict of interest  or legal dispute among owner of the strata unit of Apartment  in Indonesia in the future.