In this blog post, we will look at the key points of safe transactions, focusing on the legal effect and procedures of registration in real estate transactions and the essential conditions for securing ownership.
The right to control property is called property rights, which include possession, ownership, leasehold rights, and mortgage rights. Among properties, real estate is generally more expensive than movable property. Therefore, transactions involving real estate must be handled with caution, which makes the process somewhat cumbersome. For example, when buying an apartment, the buyer usually pays the seller a deposit of about 10% of the purchase price. As a rule, the deposit is considered a penalty for breach of contract, so the buyer can unilaterally cancel the contract by forfeiting the deposit, and the seller can unilaterally cancel the contract by paying double the deposit.
This contract deposit system serves as an important factor in building trust between the seller and the buyer. From the moment the contract deposit is exchanged, the parties to the contract become responsible for fulfilling the contract, which prevents them from easily breaking the contract. Furthermore, the contract deposit serves as clear evidence that the sales contract has been concluded, providing legal stability to both parties to the contract.
Part of the remaining 90% of the purchase price may be paid additionally, which is called the interim payment. Once the interim payment is made, the contract cannot be unilaterally terminated. Once the remaining balance is paid, the payment of the purchase price is completed, and at the same time, the buyer receives the relevant documents, including the certificate of registration, from the seller. At this point, the sales contract is considered complete, and the only remaining procedure is registration.
Information on rights related to real estate is recorded in the registry in accordance with the law, and the procedure of recording such information in the registry or the recording itself is called registration. Matters concerning real property rights are disclosed to the general public through registration. The registration book is organized based on the real property rather than the owner, and only one registration record is kept for each property. In principle, ownership cannot exist separately for a part or component of a property, nor can a single ownership right be established for multiple properties.
Take the example of an apartment. There is only one registry for the apartment, and the title page of the registry contains information such as the address and condition of the building, while the main section contains information on the establishment and changes in ownership of the apartment. If there are rights other than ownership, such as leasehold rights and mortgage rights, these are recorded in the supplementary section. This clarifies the rights relationships of the real estate and enhances the stability of transactions.
Real estate transactions do not end with the simple signing of a contract; the subsequent procedures are also very important. After the buyer has paid the balance, they must check the certified copy of the registry and receive all documents from the seller. To prevent legal problems that may arise during this process, it is wise to seek the assistance of a lawyer or judicial scrivener. Once the registration process is complete, the buyer is recognized as the official owner and is in a strong position in any legal disputes that may arise in the future.
Since transactions are conducted reliably based on the public disclosure of the registration, the registration must reflect the true legal relationship. Registration due to a new cause, such as a change in ownership through a sale, is called registration of a new cause, which includes registration of transfer of ownership and registration of mortgage. In addition, if it is confirmed that a completed registration does not match the actual legal relationship due to an error in the application, it is possible to apply for registration to correct it. This is called corrective registration. Corrective registration may include registration to correct the indication of real estate or the name of the registrant, or registration to correct the right itself, such as changing the registration of a mortgage to a registration of a leasehold right.
As a general rule, registration applications must be submitted jointly by the person entitled to registration and the person obligated to register, in order to ensure the authenticity of the registration. The person entitled to registration refers to the person who will be newly registered as the right holder in the registry, and the person obligated to register refers to the person who was originally registered as the right holder. Registration based on an apartment sale contract must also be applied for jointly by the buyer and the seller. Many people believe that the buyer applies for registration, but in fact, it is common for the buyer to be entrusted by the seller to apply for registration on their behalf, which is why it appears that way.
The following two principles are discussed in relation to determining the validity of registration. The principle that, in the absence of public notification, the transfer of property rights is not effective between the parties, as well as in relation to third parties, is called the requirement for establishment. On the other hand, once a contract is concluded, the transfer of property rights between the parties is valid, but the principle that the transfer of property rights cannot be asserted against third parties unless it has been publicly disclosed is called the principle of opposition. Under our legal system, the owner of real estate acquires ownership when the name is entered in the registry.
Therefore, it is important to follow the registration procedure thoroughly and check the copy of the registry at any time to ensure that your rights are protected. Real estate transactions are major decisions in life and require careful and thorough preparation. This will prevent unexpected legal disputes and ensure a safe and satisfactory transaction.
