[Korean Law Insights] Key Consideration When Selling Real Estate in Korea - Title Change Registration

[Published on July 30, 2024 edition of the "Korean Law Insights" column in the Korea Daily’s Economic Expert Section]

•  Essential for smooth sale at the desired time

• No need to pre-issue foreign registration card or residence certificate

Many Koreans who own real estate in Korea originally acquired the property through purchase, gift, or inheritance, and later obtained U.S. citizenship. If such individuals plan to sell the Korean real estate after becoming a naturalized citizen, it is essential to check in advance whether the title holder's information has been updated. If it has not been done, it should be completed as soon as possible.

Korea generally does not allow dual nationality. Therefore, if an individual acquires a foreign nationality, they lose their Korean nationality. As a result, the information recorded on the real estate registration document, such as the owner’s name, resident registration number, and address, reflects the details submitted when the property was acquired. This information may differ from the individual’s current nationality, name, and address. Title change registration involves updating the information on the registration document to match the owner’s current details. In fact, the process of title change registration is not complicated, so if the necessary documents are prepared, it can be done along with the property transfer registration for the sale. However, considering the practical reasons outlined below, it is preferable to handle it in advance.

When planning to sell real estate in Korea, many people either look for a buyer through a real estate agent or ask others to help find a buyer. If the buyer does not know the owner of the property personally, they will check the property’s registration document and, during the sale process, verify the seller’s identity by comparing the ID with the registered information. If the information does not match because the title change registration was not done in advance, the transaction could be halted due to a lack of trust. Even if the seller explains the situation, the buyer might not trust it, and if the title change registration is done only at that point, the seller may miss the optimal time to sell. Given these practical considerations, it is advisable to complete the title change registration early and then look for a buyer. 

On the other hands, regarding the change of nationality to U.S. citizenship, some may ask if they must first file for the loss of Korean nationality or wait until the process is completed before conducting the title change registration. The answer is no. According to Korean registration regulations, when the owner’s nationality changes, proof of the nationality change is required, which can include documents such as the certificate of citizenship, naturalization certificate, proof of nationality acquisition, or a closed basic certificate. In practice, you can prove the nationality change with a certificate of citizenship without needing to file for the loss of Korean nationality.

Additionally, some people ask if it is necessary to issue a residence certificate or foreign registration card, with a residence registration number or foreign registration number, before conducting the title change registration. Again, the answer is no. If, at the time of planning to sell the property, the individual plans to have an address in Korea or needs an ID for various purposes in Korea, then it might be worth issuing the residence certificate or foreign registration card along with the title change registration. However, if not, the foreigner’s real estate registration number can be used to proceed with the title change registration.

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Jin Hee Lee/K-Law Consulting Korean Attorney

[Reference link in original Korean] 

https://news.koreadaily.com/2024/07/30/economy/economygeneral/20240730205617916.html