Buying your first home in Korea is a chain of "what now?" moments. When is the deposit due? When do I apply for a loan? Who handles registration? Get the order wrong and costs land when the money isn't ready — or you skip a check that matters.
Here's the whole process in sequence, with what to verify and what to pay at each stage.
The typical flow is contract → (30–60 days) → interim payment → (30–60 days) → balance and registration, taking two to three months. Standard splits are 10% deposit, 40–50% interim, 40–50% balance (negotiable).
Timeline and cash flow
| Stage | Timing · outlay |
| ① Viewing and holding deposit | Small holding sum |
| ② Main contract | Deposit of 10% of price |
| ③ Loan application | Right after signing (2–7 days review) |
| ④ Interim payment | 40–50% of price |
| ⑤ Balance and transfer | Balance + acquisition tax, commission, scrivener |
| ⑥ Registration complete | 1–2 weeks after balance |
① Before you commit
- Property register — mortgages, attachments, trusts (how to read it)
- Building ledger — violations, actual area and use
- Market price — recent transactions for the same complex and size on the official disclosure system
- Site visit — light, noise, leak marks, water pressure, surroundings
- Maintenance fees and arrears — ask the management office
Careful with holding deposits. Wiring money in a rush can constitute a concluded contract. At minimum, put the address, amount, closing date and refund conditions in writing first.
② Signing the contract
| Counterparty | Confirm the registered owner against ID |
| If an agent signs | Check power of attorney and seal certificate |
| Payment account | Must be in the owner's name |
| Contract essentials | Price, payment schedule, closing date, special clauses |
| Disclosure statement | Receive and sign it |
Clauses worth adding
- "The seller shall create no new mortgage or attachment before the closing date."
- "The seller shall settle maintenance fees and utilities as of the closing date."
- "If the buyer's loan is refused, the contract is void and the deposit refunded."
- "The seller is responsible for material defects in the current condition."
③ The loan — start immediately
- Limits — the lower of LTV (value-based) and DSR (income-based) is your real cap.
- Compare banks — small rate gaps compound into millions. Check payments in the loan calculator.
- Fixed or variable (comparison)
- Documents — income, employment, contract, property register
④ Interim payment — the point of no return
Legally significant. While only the deposit has changed hands, the buyer can walk away by forfeiting it and the seller by returning double. Once the interim payment is made, unilateral cancellation ends. In a rising market, paying the interim early is a defense against a seller trying to break the deal.
⑤ Closing day
| Final check | Re-issue the property register — no new mortgages |
| Seller's loan | Confirm existing mortgages are discharged |
| Settlement | Maintenance fees, utilities, long-term repair reserve |
| Payments | Balance + commission + scrivener fee |
| Receive | Keys, title deed, management handover |
⑥ Registration and taxes
| Ownership transfer | Filed at closing, done in 1–2 weeks |
| Acquisition tax | Within 60 days (rate table) |
| Move-in report | Within 14 days of moving |
| Title deed | Cannot be reissued — store safely |
💰 What it costs beyond the price
First-time buyers most often miss this: budget 2–4% of the purchase price on top.
| Acquisition tax + surtaxes | 1.1–3.5% of price |
| Agent commission | Negotiated within the ceiling (how it works) |
| Scrivener fee | Several hundred thousand won |
| Stamp duty, bonds | Minor |
| Moving and interiors | Separate |
Keep every receipt. Acquisition tax, commissions, scrivener fees, extensions and windows all count later as allowable expenses for capital gains tax — paperwork that saves millions a decade from now.
FAQ
Can I cancel after a holding deposit?
Without stated conditions it may count as a concluded contract, making recovery difficult. Put refund terms in writing first.
Can the closing date move?
Only by agreement. Delaying unilaterally can trigger interest or cancellation.
Can I register the transfer myself?
Yes, though lenders often require their own scrivener when a mortgage is involved.
Can I move in before closing?
Normally after ownership transfers. If necessary, get a written agreement.
Buying a home is half finding the right property and half checking things in the right order. Read the register twice — before signing and before the balance.
This is general information, not legal or tax advice. Procedures and costs vary by deal and region — consult an agent, scrivener or tax professional.
