Contract with Seller
Step To Ownership
Step4.Contract with Seller
(A) Making an Offer to Signing a Contract
Once you find a property that you wish to purchase, your next step is to make a purchase proposal. You will fill out the form called, ""Application to Purchase a Property"" and give it to your broker for negotiation with the seller. The broker, acting as an intermediary, negotiates with both buyer and seller about purchase price, payment method and timing, delivery date, and equipment and fixtures that shall remain with the property, as well as other terms and conditions.
After both parties come to agreement on all issues, the broker will explain important laws, regulations and other issues related to the transfer of title. The final step is for the seller and buyer to sign the Agreement for Sale and Purchase of Real Estate.
(B) Explanation of Important Matters about the property and the transaction
In accordance with the "Explanation of important Matters about the property and the transaction", a licensed and certified broker will explain to both seller and buyer details about the property title registration, the right of property ownership, legal description of the property, payment methods, and the applicable provisions in case of canceling the contract.
You are encouraged to ask the broker for clarification regarding any unfamiliar or uncertain terms in this Agreement.
(C) Property Sale / Purchase Agreement
The sale / purchase of the property is governed by "The Agreement for Sale and Purchase of Real Estate "
The purpose of this agreement is to clarify the conditions of the transaction and the rights and obligations of both seller and buyer, and to ensure a safe and legally binding transaction for both parties. Once both seller and buyer sign the Agreement and the buyer makes a down payment, the Agreement comes legally into effect.
From that point, the transaction will be conducted in accordance with the provisions set forth in the Agreement.
Both parties are obligated to carry out the contractual conditions as stipulated in the Agreement. In case either party fails to fulfill their contractual obligations, a penalty may be imposed on such party. Therefore, it is strongly recommended that both parties get a clear understanding from the broker of each and every provision before signing the Agreement in order to avoid paying any default penalty.
(D) What you will need for signing the Agreement
The following are required at the time of signing The Agreement for Sale and Purchase of Real Estate.
- Personal seal (For mortgage borrower, the registered personal seal must be used.)
- Down payment (advance confirmation of the method of payment is recommended: cash or deposit check, etc.)
- Funds to cover the revenue stamp fee (amount of the fee varies depending on the purchase price of the property).
- One half of the brokerage commission and separately, general sales tax and regional sales tax.
- Alien Registration Card (or other document to verify the buyer's identification)
*For a mortgage borrower, loan application documents are required.
