When selling or purchasing real estate
Paying the balance- Normally, before moving into a new house, the purchaser shall pay the whole balance to the seller, while the seller shall provide the purchaser with all the necessary documents for the transfer of ownership of real estate (Article 568 of the Civil Act and Article 23 (1) of the Registration Of Real Estate Act).
- When the balance has not been settled
· In the event that the purchaser fails to settle the balance by the fixed date, the seller is entitled to rescind the real estate sale contract and retain the contract deposit already received under the pretext of a penalty (Article 565 (1) of the Civil Act).
· In the event where the purchaser’s failure to settle the balance causes damage to the seller, the purchaser may be liable for the damage, and this possibility should be borne in mind (Article 551 of the Civil Act).
Establishment of mortgage when loaning money- The mortgage for a house is created when the funds for its purchase are loaned from a bank, and the usual type is the right to collateral security.
- The “right to collateral security” is an established mortgage to secure a maximum amount of unspecified bonds that occur at constant dealings during a period of settlement in the future (Article 357 of the Civil Act). The applicant or his/her representative may apply for registration by submitting the relevant information and attachments to a registry office in person, or through the Internet registry (Article 24 (1) of the Registration Of Real Estate Act).
- Documents to be submitted for establishing the right to collateral security
· Copy (abstract) of the resident registration or the certificate of corporate registration of the holder of the right of registration (creditor, bank) and certificate of the seal impression of the obligator for registration (purchaser) (Article 48 (2) of the Registration Of Real Estate Act)
· Receipt of the completed confirmation of registered license tax (Article 25 (1) 17 of the Local Tax Act)
· Contract for establishing the right to collateral security (Article 75 of the Registration Of Real Estate Act)
· Information about the completed registration or notice of information about completed registration (Article 50 (2) of the Registration Of Real Estate Act)
· Letter of delegation (This is necessary when the holder or the obligator receives the letter of delegation from the other party to register by himself/herself.)