What are the usual documents involved in such transactions?
- Real estate purchase agreement
- A due diligence report issued by a lawyer or consulting firm in case the real estate has a substantial value
- An appraisal report if the transaction involves a listed company or foundation that is required to perform an appraisal before proceeding with the transaction
- Application documents for registration in prescribed forms to be submitted to the competent authority
What are the warranties given by a seller to a buyer?
A seller usually gives the following warranties in addition to customary warranties:
- There is no dispute over the ownership and the real estate is sold to a single buyer only (i.e., no double-selling)
- There is no lease agreement or any and all existing lease agreements have been disclosed
- There are no quality defects such as sea sand building, radiation-contaminated reinforced bars or leaks – leaks are one of the most common building defects in Taiwan
- The land is not contaminated and is not in breach of environmental protection laws
When is the sale legally binding?
The purchase agreement, when signed, becomes binding on the parties to the agreement.
When is title transferred?
The title will be transferred to the buyer upon completion of registration at the land administration.
What are the costs usually shouldered by the parties?
The buyer usually pays for the following:
- Deed tax
- Stamp duty
- Statutory registration fee required for the transfer of title and land registration agent’s fee
- Necessary due diligence fee, if any
- Part of the commission payable to the broker, if any
The seller usually pays for the following:
- Land value increment tax
- Statutory registration fee required for deregistration of the mortgage and land registration agent’s fee
- House tax, land value tax and utility fee prior to transfer of title
- House and Land Transactions Income tax (subject to certain exemptions)
- Part of the commission payable to the broker, if any