Legal Protection of Buyers in The Pre-Project Selling Scheme for Residential Property in Indonesia

Abstract

This study examines the level of legal protection provided to buyers in pre-project selling (PPS) housing schemes during the early stages of development, when permits are incomplete, land titles are unclear, and buildings are not yet constructed. Using a normative approach and jurisprudential analysis, this study examines regulatory gaps, market practices, and relevant Supreme Court decisions. The results indicate that despite the existence of consumer protection regulations, protection during the pre-construction phase remains weak due to unclear land status, reliance on non-binding bank guarantees, and a lack of effective dispute resolution mechanisms. Implications of these findings include recommendations for regulatory improvements, increased transparency, and strengthening mediation institutions.