As for the amendments to the three acts governing the new system of disclosure of transaction prices of real estate promulgated, including The Equalization of Land Rights Act, in January 2021, the Ministry of the Interior, R.O.C (Taiwan) indicated today (June 3) that the Executive Yuan has approved that the new system will be launched on July 1, 2021. The new system features five major changes, including full disclosure of the lot number and house number of each transaction case, filing of a report before the sale of a pre-sale housing project for review, filing of a report within 30 days after each transaction, granting of the inspection power to competent authorities, and a fine of up to NT$1 million per transaction, ban on resale of pre-sale receipts, and pre-sale contracts placed under management and control, to allow for more real-time and complete disclosure of real estate transaction information, thereby preventing speculation.
The Ministry of the Interior, R.O.C (Taiwan) pointed out that the new system of disclosure of transaction prices of real estate to be launched is an important measure to improve the structure of the real estate market. It is a critical policy to which Taiwanese citizens pay close attention, including five major changes:
1. Full disclosure of lot number and housing number
At present, the transaction information on the transaction price registration platform only reveals the lot number and housing number (such as No. 1 to No. 30 Zhongzheng Road) in some segment. After the implementation of the new system, the complete and detailed information on land number and housing number will be disclosed, and the information on more than 3 million transactions will be disclosed retroactively and made available for inquiry, making transaction information more transparent.
2. Filing of a report before the sale of a pre-sale housing project and after each transaction
With the new system in place, the information on a pre-sale housing project and a standard contract shall be filed to the local government for reference before the sale of the project begins for the sale of each pre-sale housing project. In addition, either sold by a construction company or other marketing agencies, the transaction price and other information shall be filed within 30 days from the date of signing the agreement.
3. Granting of the inspection power to competent authorities and increase the penalties for repeated violations
To check the correctness of the information filed and registered, the new system allows the local government to request the parties involved in each transaction to submit relevant documents or provide explanations for review. For cases where the sales price registered is suspected to be registered falsely, the Ministry of the Interior, R.O.C (Taiwan) may consult relevant documents submitted from tax authorities or financial institution.
In addition, in the case of a failure to register a sales price prior to the deadline or a false registered price or area, a fine of NT$30,000 to NT$150,000 per property (building) will be imposed, and those who fail to make corrections after two fines imposed will be punished more severely with a fine of NT$300,000 to NT$1 million.
4. Ban on resale of pre-sale receipts
The new system stipulates that when a deposit is paid for a unit in a pre-sale housing project, a written agreement (such as a reservation slip), specifying the subject matter and the price, shall be issued, and it must not contain the clauses concerning the reservation of the sales right or the right to sign a contract, or other matters that are detrimental to the buyer's rights, to protect consumers' interests while the buyer must not resell the reservation slip to any third party. In the case of any violation, a fine of NT$150,000 to NT$1 million per unit (building) will be imposed.
5. Standard pre-sale contracts placed under management and control
In the new system, the standard contract for the sale of a pre-sale housing project should be filed to the local government for review. If the contract adopted violates the Matters to Be Specified and Not to Be Specified in the Standard Contract for the Pre-sale Housing Project, a fine of NT$60,000 to NT$300,000 can be imposed directly per unit (building). The Ministry of the Interior, R.O.C (Taiwan) particularly reminds relevant businesses to inspect whether the content of their standard contract meets the requirements before launching a pre-sale housing project to avoid penalties.
The Ministry of the Interior, R.O.C (Taiwan) emphasized that it has engaged in intensive discussion with relevant associations and local governments since the amendments to the acts in the beginning of this year to cope with the launch of the new system. The amendments to relevant supporting bills and application forms have been announced. The development of the website for "the real estate transaction information and pre-sale housing information" has also been completed, through which relevant businesses can file the information online using their MOEACA ID cards or citizen digital certificates. To learn more about the new regulations or training courses, please visit the "Transaction Price Registration 2.0" (https://www.land.moi.gov.tw/chhtml/news/1141) on the website of the Department of Land Administration, Ministry of the Interior, R.O.C (Taiwan), or call the service hotline of the Ministry of the Interior, R.O.C (Taiwan): 1996.