The process of a real estate transaction involves a down payment, a midpoint payment, and the balance of the purchase price, followed by a formal transfer of ownership through registration. It is important to check the rights in a real estate transaction through the land registry, and to draft the contract thoroughly to prevent disputes.
The right to have control over an object is called a property right, which includes the right of occupancy, ownership, charter, mortgage, etc. Real estate is generally more expensive than immovable property, so transactions involving real estate are more cautious and cumbersome. For example, when buying or selling an apartment, the buyer usually pays a down payment of about 10% of the purchase price to the seller. The customary practice is that the down payment also acts as a penalty, so the buyer can waive it and the seller can unilaterally cancel the contract by asking for double the amount. You can also pay an additional portion of the remaining 90%, which is called the earnest money. Once the earnest money is paid, the contract cannot be canceled unilaterally. The payment of the balance of the purchase price is then finalized, and the buyer receives the documents from the seller, including the deed. At this point, the contract of sale is considered complete, and it remains to be registered.
Information on real estate rights is entered into a register in accordance with the law, and the process of entering it into the register at the request of a party or the entry itself is called registration. The organization of the register is centered on the property, not the owner, and there is only one register for one property. In principle, there cannot be separate ownership of parts or components of an object, nor can there be a single title covering several objects. In the case of an apartment, for example, there is only one register for the apartment, and the title page contains information such as the address of the apartment and the condition of the building, and the cover page contains information about the creation or change of ownership of the apartment. If there are any non-title encumbrances, such as leases or mortgages, they will be listed in the subdivision.
It’s important to make sure that the deed reflects the true title, because transactions rely on these disclosures. A new cause of registration, such as a change of ownership through a sale or purchase, is called an entry registration, such as a transfer of ownership or mortgage registration. In addition, if it is confirmed that the completed registration is inconsistent with the actual legal relationship due to an error in the application, you can apply for a registration to correct it. This is called a corrective registration. Corrective registrations can be registrations that correct the real estate or the mark of the registered person, or they can be registrations that correct the right itself, such as a mortgage registration being corrected by a charter registration.
As a general rule, the application for registration must be made jointly by the right holder and the recorder to ensure the authenticity of the registration. The right holder refers to the person who will be added to the register as a new right holder, and the recorder refers to the person who was originally recorded as the right holder. Registration under an apartment purchase and sale contract must also be applied for jointly by the buyer and seller. Many people think that the buyer applies for registration, but this is only because it is common for the buyer to authorize the seller to apply for registration.
There are two principles that determine the effectiveness of the registration The principle that a change of title is not effective as between the parties, as well as in relation to third parties, if it is not disclosed is known as res judicata. On the other hand, the principle that a change in water rights is valid between the parties once the contract is finalized, but the effect of the change in water rights cannot be claimed against third parties if the disclosure is not made is called counter-requirementism. Our legal system is based on the principle that the owner of the property acquires title when the name is entered in the register.
It is very important to check the title of the real estate transaction through the register of deeds. The register of deeds clearly states the ownership, mortgage, leasehold, and other rights of the property and should be carefully examined before entering into a sale or lease agreement. In addition, it is necessary to check the actual condition of the property based on the contents of the register to ensure that there are no abnormalities. For example, if the deed says that there are no mortgages on the property, but in fact there are, it can be very damaging to the buyer. Therefore, checking the deeds is essential in real estate transactions to ensure a stable and secure transaction.
In addition, contracts play an important role in real estate transactions. It should clearly spell out the purchase price, payment schedule, when the deed will be transferred, and the conditions for canceling the contract. This will help prevent any disputes that may arise later on. It’s always a good idea to get legal help when drafting a contract, especially if it’s your first time buying, selling, or renting. Real estate transactions involve large sums of money, so it’s important to follow all procedures and check everything thoroughly.
Real estate registries are more than just a public record of rights; they also serve to secure social credibility. To maintain their credibility, registrars must thoroughly verify the authenticity of the information provided in the application for registration and the accompanying documents. This enhances the credibility of the registry and ensures the safety of real estate transactions. In addition, the registry is electronic and can be easily accessed via the internet, allowing anyone to check the title of a property whenever they need to.
In real estate transactions, recording is an important process that officially records changes in ownership and other rights. It ensures the safety of the transaction and protects the rights and interests of the right holders. By understanding and following the registration process correctly, you can realize a stable and reliable real estate transaction.
