CONSUMER PROTECTION AGAINST PROPERTY SALES UNDER PRE PROJECT SELLING SYSTEM

Abstract

Pre Project Selling (PPS) is one way of selling a property before the building is constructed.
This system is not illegal in Indonesia. Selling under PPS system harms consumers for
several reasons. First, during transaction, the buyers do not get what they purchase. Second,
the buyers are bound to the standard Sales and Purchase Agreement (SPA). These two
matters put the consumers in an unprotected position as a result of the imbalanced contract.
This study uses a legal normative approach. The findings reveal that; firstly, consumers are
placed in a disadvantage position by the SPA. Secondly, the consumer’s rights are not
protected before the transaction object exists. This situation requires a government
intervention which includes providing a selective building permit for property companies and
establishing a Property Supervisory Board.