Seven steps of a sale, and the legal checkpoint in each
The process of buying or selling a home is not complicated; the difficulty is in the details hidden at each stage. Here is what happens at each step, what the lawyer pays particular attention to, and which documents each side needs.
Seller lists / buyer views
1. Listing & viewing
A property can only be advertised and shown after the seller signs a listing agreement. When buyers view it, the agent explains it using the property disclosure statement.
Documents to prepare
- Seller: ID card, title certificate or transcript
- Seller: House Tax bill and Land Value Tax bill
- Inherited or co-owned property: details of the other owners
Lawyer's checkpoints
- Pull the latest land registry transcripts and confirm the registered owner and ownership share
- Encumbrances (mortgage amounts) and registered restrictions (seizure, provisional attachment and so on)
- Zoning, the use stated on the occupancy permit, additions and unpermitted structures
- Inherited or co-owned property: confirm that everyone agrees, or whether Land Act Art. 34-1 applies
Legal basis: Real Estate Broking Management Act Arts. 21, 23
Buyer makes an offer
2. Offer
A buyer can make an offer with an earnest-money offer or a written offer. The two have different legal effects and different ways of withdrawing, so this is explained before any offer is made.
Documents to prepare
- Buyer: ID card
- Earnest money (if that option is chosen)
Lawyer's checkpoints
- The difference between an earnest-money offer and a written offer, and how each can be withdrawn
- How long the offer stays open, and when the contract is formed once the seller accepts
- Terms beyond the price: parking space, furniture, handover date
Buyer and seller
3. Signing
Once price and terms are agreed, both sides sign the sale contract and set the payment schedule (signing payment, sealing payment, tax payment and handover payment) and the escrow arrangement.
Documents to prepare
- Both sides: ID card and seal
- Seller: title certificate
- Buyer: signing payment
Lawyer's checkpoints
- The seller's identity matches the title certificate; an agent needs a power of attorney and a seal certificate
- All co-owners are present; any sale involving a minor or a person under guardianship follows the legal requirements
- Special terms: loan shortfall, leaks, unnatural death on the premises, additions, handover deadline
- Penalties for breach and conditions for cancellation are clearly written
Buyer, seller and scrivener
4. Sealing
Both sides seal the official transfer contract at the land administration agent (scrivener)'s office, and the seller provides a seal certificate. The buyer applies for the mortgage at the same time.
Documents to prepare
- Seller: registered seal and seal certificate
- Buyer: registered seal (or personal seal) and sealing payment
Lawyer's checkpoints
- The seal certificate matches the registered seal
- The buyer's loan-to-value ratio and approval timeline fit the payment schedule
- Funds in the escrow (performance-guarantee) account and the conditions for release
Scrivener files, both sides pay
5. Taxes
Within 30 days of the contract, the land transfer value and Deed Tax are filed. Once the tax bills arrive, the seller pays the Land Value Increment Tax and the buyer pays the Deed Tax.
Documents to prepare
- Both sides: tax payment
- For the owner-occupied rate: household registration records
Lawyer's checkpoints
- Whether the 10% owner-occupied rate applies to the Land Value Increment Tax
- How Deed Tax, Stamp Tax and registration fees are calculated and who bears them
- Reminder to the seller: file the Consolidated House and Land Income Tax within 30 days after the transfer is registered
Legal basis: Land Tax Act Art. 49; Deed Tax Act Art. 16; Income Tax Act Art. 14-5
Scrivener files the registration
6. Transfer
After the taxes are paid, the ownership transfer is filed with the land office. If the buyer has a mortgage, it is registered at the same time.
Documents to prepare
- Scrivener prepares the registration documents
- Buyer: loan signing documents
Lawyer's checkpoints
- Check the transcript again before filing for any new seizure or provisional attachment
- Repayment of the seller's existing loan and release of the mortgage
- Check the new transcript once registration is complete
Buyer and seller
7. Handover
Keys and property are handed over, the final payment, utilities, management fees and tax apportionment are settled, and the escrow account releases the funds to the seller.
Documents to prepare
- Both sides: handover payment settlement
- Seller: keys, remote controls, building residents' information
Lawyer's checkpoints
- Go through the handover checklist item by item and record anything that differs from what was agreed
- Photograph any defects; leaks and similar issues are handled under the contract
- Deadline for moving the household registration out, and settlement of amounts collected or paid on the other side's behalf
Fees
Fees are fully transparent. Brokerage fees follow what is agreed when listing or making an offer, and the combined total for buyer and seller does not exceed 6% of the sale price.
| Item | Fee | Notes |
|---|---|---|
| Seller's brokerage fee | As agreed in the listing agreement | Commonly up to 4% of the sale price in the industry; stated in the listing agreement. |
| Buyer's brokerage fee | As agreed when making the offer | Commonly up to 2% of the sale price in the industry; stated in the earnest-money offer or written offer. |
| Transcript and title review | Included | Before listing and viewings, the lawyer pulls the land registry transcripts and reviews them item by item. |
| Drafting special terms, contract review | Included | Drafted from the terms both sides have agreed, and neutral toward buyer and seller. |
| Tax estimates and ownership planning | Included | You can also run the numbers yourself with the site's tools. |
| Scrivener's fee | As quoted by the scrivener | Covers transfer registration, mortgage registration and mortgage release. |
| Matters needing a lawyer to act for one side | Engaged separately | Transaction disputes, litigation, inheritance registration, partition of co-owned property and similar matters are referred to another lawyer, or handled under a separate engagement at the Chen & Partners Attorneys-at-Law fee schedule (in Chinese). |
Legal basis: Ministry of the Interior brokerage fee standard.
Frequently asked questions
Does an agent with a law license charge extra legal fees?
No. During the listing, the transcript review, drafting of special contract terms and tax estimates are all included in the brokerage service. A referral or separate engagement is only needed when one side needs a lawyer to handle a dispute or litigation on their behalf.
What is the difference between an earnest-money offer and a written offer?
Both are ways for a buyer to make an offer. An earnest-money offer requires paying a sum up front; a written offer does not. Once the seller accepts, either one forms the sale contract, but they differ in how and when an offer can be withdrawn. This is explained before the offer so the buyer can choose.
Can an inherited home be listed if one of the heirs does not agree?
It can be assessed first. If the number of consenting owners and their shares meet the threshold in Land Act Art. 34-1, a majority-rule sale may be possible. Try the inherited property tool first, then send the transcript to Chen Law to confirm.
Can I take the contract home to read before signing?
Yes. It is best to check the transcript, the contract terms and the payment arrangements before signing; the pre-signing checklist helps you go through them item by item.
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