Legal Protection for Goodwill Customers in The Purchase of Mortgage Guarantee

Irregularities have been found in the sale and purchase processes, especially among good-faith buyers in the purchase of collateral objects. Disputes and claims over collateral objects purchased by parties third in the District Court often occur. This descriptive legal research was carried out to obtain relevant data to the research problem. Secondary data consisting of primary legal materials, secondary legal materials and tertiary legal materials were regarded. It is concluded that if done based on the procedure, the purchase of collateral objects by good faith buyers is valid, and the agreement cannot be withdrawn other than by an agreement between the two parties or for reasons determined by law. The board of judge tends to perceive the auction buyers as good faith buyers without further examining the legality of the object for they believe any objects sold in an auction is legal as the auction is carried out by a trustworthy institution. Therefore, good faith buyers will obtain legal protection despite the objects are handed out by unauthorized party.