Acquisition of Real Property
Jump to
Acquisition of Real Property Start Comparison
What are the usual documents involved in such transactions?
  • Sale and purchase agreements
  • Financing-related documents
  • Documents for title transfer registration application
What are the warranties given by a seller to a buyer?

A seller usually gives the following warranties:

  • Ownership
  • Right to sell the property and convey title
  • No third party claims
  • No notice of condemnation
  • Real property taxes not delinquent
  • Compliance with the Building Standards Law, the Fire Protection Law, the City Planning Law, the National Land Use and Planning Law and environmental laws

If a licensed real estate broker is involved, the real estate broker is mandated by law to provide written disclosures (or electronic, if consent is obtained from the party receiving the explanation) and verbal explanations about the important matters concerning the sales contract and the property. The seller's licensed real estate brokers usually provides such disclosure and explanations if there is one representing the seller.

When is the sale legally binding?

The sale is legally binding upon the execution of the sale and purchase agreement, subject to the terms and conditions therein.

When is title transferred?

Title transfers on the date agreed to in the sale and purchase agreement, usually the date when the sales price is paid in full, the property is delivered to the buyer, and/or the title transfer documents are delivered to the buyer and filed with the local Legal Affairs Bureau.

What are the costs usually shouldered by the parties?

The buyer usually pays for:

  • Buyer’s real estate broker fees
  • Judicial scrivener's fee (if retained by the buyer, or a portion if retained by the buyer and the seller)
  • Stamp tax on the sale and purchase agreement
  • Title transfer filing fees
  • Real estate acquisition tax
  • Real estate license and registration tax
  • Consumption tax on value of the building

The seller usually pays for:

  • Seller’s real estate broker fees
  • Judicial scrivener's fee (if retained by the seller or a portion if retained by the buyer and the seller)
  • Income tax on any profit