The Appraisal Value of Collateral Assets as the Basis for Mortgage Rights Enforcement: An Analysis of Legal Certainty and Legal Protection

Rifky Budi Setiawan; G.P. Raiwella

Authors

Rifky Budi Setiawan Sekolah Tinggi Ilmu Hukum Graha Kirana. Medan, North Sumatera, Indonesia
G.P. Raiwella Sekolah Tinggi Ilmu Hukum Graha Kirana. Medan, North Sumatera, Indonesia

Keywords:

Appraisal Value; Collateral Assets; Legal Certainty; and Legal Protection.

Abstract

The implementation of bank credit is inseparable from the use of collateral as a safeguard mechanism in the event of debtor default. One of the most widely used forms of collateral in banking practice is the Mortgage Right over land and objects attached to or related to land. In the enforcement of Mortgage Rights, the appraisal value of collateral assets serves as an important reference for determining the auction limit value. However, appraisal values may not always reflect the fair market value of collateral, potentially resulting in assets being sold at relatively low prices and causing losses to debtors. This study aims to analyze legal certainty regarding the use of collateral appraisal values as the basis for Mortgage Right enforcement and examine legal protection for debtors in the appraisal process. This normative juridical study employs statutory and conceptual approaches. Primary, secondary, and tertiary legal materials were obtained through literature research and analyzed qualitatively. The findings indicate that legal certainty has not been fully achieved due to the absence of comprehensive standards, mechanisms, and parameters governing collateral appraisal in Mortgage Right enforcement. Furthermore, debtor protection remains limited because debtors have restricted participation and objection mechanisms regarding appraisal results. Therefore, strengthening regulations, transparency, accountability, and balanced legal protection is necessary to ensure certainty and fairness in Mortgage Right enforcement.

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