The Ministry of the Interior announced yesterday that the nation would start registration of real-estate transaction prices on Aug. 1, a move the government views as a first step in enhancing transparency in the real-estate market.
The announcement came after the legislature passed amendments to three property laws — the Real Estate Broking Management Act (不動產經紀業管理條例), the Land Administration Agent Act (地政士法) and the Equalization of Land Rights Act (平均地權條例) — in December last year aiming to curb the nation’s runaway real-estate prices.
Beginning in August, land administration agents, real-estate buyers and real-estate brokers must register the value of property transactions within 30 days of closing a deal, the ministry said in a statement posted on its Web site.
If the parties involved fail to do so within the required 30 days, “land administration agents and real-estate brokers will be subject to a fine of between NT$30,000 and NT$150,000 (US$1,000 to US$5,000),” Radio Taiwan International (RTI) quoted Deputy Minister of the Interior Chien Tai-lang (簡太郎) as saying at a press conference.
“Real-estate buyers who fail to register transaction prices within 30 days, will be given a 15-day grace period” before facing a fine, Chien added.
After the registration of real-estate transaction prices, the ministry hopes the disclosure of information about real-estate transactions will begin to take place in October at the earliest, which will help promote transparency in the market, ease transaction disputes and expedite deal negotiations, according to Chien.
Department of Land Administration Director Hsiao Fu-tao (蕭輔導) pledged the administration would conduct inspections on a regular basis on more than 5 percent of all registrations every year, to help deter people from registering inaccurate transaction prices, RTI reported.
At this stage, registered property prices cannot be used as a basis for levying taxes until after enough price data have been collected, relevant laws have been revised and complementary measures put in place, according to real-estate brokers.
However, the registration of actual transaction prices would help the government move toward using market prices as a basis when adjusting its land-value assessments and compensation evaluations, the brokers said.
Separately, the Ministry of Finance yesterday announced details of 12 land development projects set to be open for bidding in the near future.
Their total market prices are expected to reach NT$5.08 billion (US$169.58 million).
The winning bidders of the 12 projects will be able to develop the land by granting “superficies” rights, the ministry’s National Property Administration said in a press release.
Two of these projects are located in Taipei City and five in New Taipei City (新北市). The other properties are located throughout the nation.
The base prices for the superficies right of these pieces of land would be set at between 30 percent and 50 percent of their market prices to attract more bidders, the release said.
The bidding for the two projects in Taipei City will open on July 31, with both projects for residential use, the administration said.
Additional reporting by Amy Su