The sale and purchase of land rights carries legal risks when hidden defects are discovered after the transaction, including ownership issues, the seller’s authority, disputes, or third-party rights unknown to the buyer. These risks become more complex when the buyer has conducted due diligence and acted in good faith but still suffers losses. This study aims to analyze the legal framework governing hidden defects in land transactions, identify weaknesses in current risk allocation, and formulate legal protection for good-faith buyers. The study employs a normative legal method using statutory, case law, and conceptual approaches. Legal materials are analyzed qualitatively and prescriptively through relevant legislation, court decisions, and legal literature. The results indicate that Indonesian law provides protection through the seller’s warranty obligations and the doctrine of good-faith buyers, but lacks a systematic mechanism for allocating risks arising from hidden defects discovered after the transaction. This study proposes a reconstruction based on three principles: the source of risk, the ability to detect risk, and proportionality. The seller bears primary responsibility for defects known to or controlled by them, while the buyer bears risks resulting from negligence. Risks that neither party could reasonably foresee should be shared proportionally. This model strengthens buyer protection while maintaining a fair balance of interests between the parties.
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