Legal Protection for Auction Buyers Against the Transfer of Auctioned Objects to Third Parties (Study of Supreme Court Decision Number 866 K/Pdt/2020)
DOI:
https://doi.org/10.65310/1eemjm42Keywords:
Auction Buyer, Legal Protection, Mortgage Right, Transfer of Auctioned Object, Unlawful Act.Abstract
Mortgage-right execution auctions provide creditors with a legal mechanism to recover secured debts through the public sale of collateral while creating enforceable rights for successful bidders. This study analyzes the legal protection available to a lawful and good-faith auction buyer when the former owner subsequently transfers the auctioned object to third parties, and examines the validity and legal consequences of those transactions in Supreme Court Decision Number 866 K/Pdt/2020. The research employs a normative legal design using statutory and case approaches, with qualitative analysis of primary, secondary, and tertiary legal materials. The findings show that auction buyers receive preventive protection through regulated auction procedures, verification of legal documents, institutional responsibility for the auction object, and issuance of the Minutes of Auction as evidence of acquisition. Repressive protection is provided through judicial mechanisms that recognize the buyer’s prior rights, invalidate subsequent transfers lacking authority, correct conflicting land-registration records, and restore possession of the property. The transactions involving Mr. C, Mr. J, and Mr. H were legally defective because formal compliance could not cure the absence of material authority to transfer the object. Effective protection therefore requires consistency between auction validity, land registration, effective judicial enforcement, and actual control of the property.
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