The term “real estate” includes the following:
The following are the main laws that govern real estate transactions:
In Taiwan, under the Civil Code, the types of rights to, or interests in, real estate are limited to those provided by statutory law or customary practice, and no new type may be created by agreement. Unless otherwise provided under law, certain acts such as inheritance, acquisition, creation, loss and change to rights to real estate shall be documented in writing and shall not become effective without registration with the competent authority. Furthermore, the registration of real estate rights made in accordance with related regulations shall have an absolute effect to any third party.
The Ministry of the Interior is the highest regulatory authority for land registration. There is also a land administration unit in each local government. In practice, the land registration work is the responsibility of the land office under the county/city government.
Land/building owners hold a land/building title deed affixed with the official seal of the registration authority and the title and signature of the chief of the authority to prove their ownership. Details of land/building registration may also be found in the land/building register transcript, which are public information and can be applied online with a fee.
All registered records are available to the public online, and information about the ownership of real property can be searched for a fee. Land/building transcript applications can also be done online. Due to personal information protection, the title owner’s name and address will be redacted in these reports and transcripts, unless the application is submitted by the title owner him/herself or the local court.
Foreigners may acquire or create rights to land in Taiwan on the condition that:
Property may be expropriated by the government based on authorization of laws and due procedure, but appropriate compensation must be paid.
Generally, real estate can be held through any of the following means:
Most real estate transactions are funded by a person’s own capital and loans. Loans may be obtained from financial institutions such as banks, credit unions, insurance companies and farmers’ associations. In most cases, the subject of the transaction will be provided as the collateral for the loan. To provide the collateral, the borrower is usually required to mortgage the real estate in favor of the lender which will be registered as the mortgagee. There are, however, cases in which the real estate is placed in trust with a trustee acceptable to the lender. The loan rate may be floating or fixed. In general, the financial institution will ask the borrower to pay the costs and fees arising from the loan, including the due diligence fee, land registration agent’s fees and the statutory administration fee required for registration.
In case the subject of the real estate transaction has a relatively small value, such as regular residence, a land registration agent prepares the relevant documents. If real estate of substantial value is involved, usually the lawyer for the buyer prepares the real estate purchase agreement.
A person who registers the right to the real estate shall take the precedence. As such, if a relevant right has been registered against the real estate according to law, such as a mortgage, the subsequent owner will take title to the real estate (whether by purchase or inheritance) subject to the mortgage until such mortgage is discharged.
Also, the Civil Code provides that in case of a lease with a term of less than five years or that is notarized, even if a new owner purchases or inherits a real estate property, subsequently, it shall assume such existing lease as the landlord.