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A Busan property sale is not done until registration is transferred
Ownership of real estate does not pass on the sale contract alone; it takes effect only on registration. So whether to cancel the contract or demand performance depends on which stage the contract is at, down payment, interim payment, or balance, and on whether you are the buyer or the seller.
A sale dispute starts with which stage the contract is at
A property sale ties together the down payment, the interim payment, the balance, registration, and special terms, stage by stage. Whether you are the buyer or the seller, you first decide whether to cancel the contract or demand performance.
We first consider an injunction so the property does not pass to someone else during the suit, and carry through to registration and execution after judgment. A Law Firm Yulmaru attorney handles the case personally from the start.
To consult in Changwon or Seoul: Changwon Office · Seoul Office
How your case proceeds
Rights analysis
We confirm the stage from the contract and the registry
Injunction
We first block disposal of the property
Lawsuit or mediation
We pursue a suit for registration or for the price
Registration and execution
We transfer registration and enforce with the judgment
What you can do at each stage of the contract
| Stage | What you can do |
|---|---|
| Only the down payment has changed hands | Before performance begins, the payer can cancel by forfeiting the down payment, and the recipient by returning double the amount |
| Interim payment or balance stage | Demand performance within a reasonable period, then cancel; each side returns what it received |
| Buyer who paid the balance | Claim ownership transfer registration; consider an injunction against disposal |
| Buyer who found a defect | Claim under the warranty within 6 months of learning of the defect |
Basis: Civil Act, Articles 186, 565, 544, 548, 580, and 582
Sale and Title Frequently Asked Questions
QCan I bring an ownership transfer registration suit even if the seller avoids contact?
Yes. If the seller's address is unknown or the seller does not accept the complaint, a busan property title transfer lawyer can proceed by service by public notice (Civil Procedure Act, Article 194), and once a judgment ordering the registration procedure becomes final, the buyer can apply for registration alone (Registration of Real Estate Act, Article 23(4)). We first apply for an injunction against disposal so the seller cannot transfer the property to someone else during the suit.
QI am about to pay the balance, but the seller's registry still shows a mortgage. Can I pay?
The rule is to exchange the balance for the documents to cancel the mortgage, and if the seller has not prepared the cancellation, you can refuse to pay the balance (Civil Act, Article 536). Usually, on the closing day the buyer repays part of the loan directly to the financial institution and receives the cancellation documents, and that agreement should be put in writing to avoid disputes later.
QThe buyer did not pay the balance and I want to cancel. Can I simply keep the down payment?
You can keep it only if there is an agreement that the down payment serves as a penalty; without such a special term, you return the down payment and must separately prove actual loss to claim damages (Civil Act, Article 398(4)). To cancel, you must first demand payment of the balance within a reasonable period and wait for it to pass (Civil Act, Article 544), and the seller should also keep proof of having prepared the registration documents.
QIf I win an ownership transfer registration suit, does registration transfer automatically?
No. After the judgment becomes final, the buyer must apply alone at the registry office with an authenticated copy of the judgment and a certificate of finality (Registration of Real Estate Act, Article 23(4)), and ownership passes only when registration is complete (Civil Act, Article 186). If the seller dies during the suit, the heirs take over the proceedings (Civil Procedure Act, Article 233), so the case continues against them.
QThe registry does not show the seller's name, but the seller says they are the real owner and wants to sell. Should I sign?
A contract with someone who is not the registered titleholder carries a high risk of never receiving registration. Transfer registration must be applied for jointly with the registered titleholder as the person obliged to register (Registration of Real Estate Act, Article 23(1)), and title trust agreements are void in principle (Act on the Registration of Real Estate under Actual Titleholder's Name, Article 4), so a claim of real ownership alone makes it hard to demand registration. Confirm the titleholder's identity and obtain a power of attorney and certificate of seal impression, or change the contracting party to the titleholder.
QAfter the contract, the seller registered the property to someone else first. What can I do?
Once registration is in a third party's name, you cannot demand transfer registration from the seller, so you cancel the contract for impossibility of performance and claim return of the money paid and damages (Civil Act, Articles 546 and 390). If the third party actively joined in the seller's breach of trust, that sale can be void as contrary to social order (Civil Act, Article 103), which opens the way to contest cancellation of the registration. To prevent this, consider an injunction against disposal before paying the balance.