'Self-Registration' Hits Record High... Various Fee Burdens Amid Soaring House Prices

The number of 'self-registrations,' where individuals register real estate themselves without using agents such as lawyers or judicial scriveners, has reached the highest level since statistics began to be compiled. This is interpreted as an increase in people trying to reduce ancillary real estate costs due to the rising burden of brokerage fees and property taxes amid soaring housing prices.

According to the Court Registry Information Plaza on the 7th, the number of real estate registrations applied for directly by the parties last year was 53,159, the highest since statistics started in 2010. This figure was below 30,000 for two years, with 30,773 cases in 2017, 29,015 in 2018, and 25,051 in 2019, but surged to 43,067 in 2020 and exceeded 50,000 for the first time last year.

The fee for real estate registration agency services is usually around 0.1% of the house price. Considering that the average apartment sale price in Seoul last year was about 1.2 billion KRW, the fee would be approximately 1.2 million KRW. Mr. A, who purchased a two-room officetel in Mapo-gu last December and inquired about registration agency fees, said, "Since the rights relationship was clear and the property size was not large, but the judicial scrivener demanded 500,000 KRW as a fee, I referred to YouTube and other sources and successfully completed the self-registration."

As direct registrations by parties increase, local governments in Seoul are supporting residents by operating self-registration help desks. Most Seoul district websites, including Gangnam, Mapo, and Dobong-gu, have a 'Nalo-ro Deung-gi' (self-registration) section where applicants can easily check the application procedures and required documents.

'Self-Registration' Procedure and Required Documents

Self-registration requires many necessary documents, so it is important to prepare them carefully and apply for registration immediately on the day the purchase payment is made. If essential documents are missing or the application form is filled out incorrectly, correction orders may be issued, causing delays in the registration process.

Ko Jun-seok, an adjunct professor at Dongguk University Law School, said, "If the rights relationship of the property is complicated, even a delay of a day or two in registration can result in provisional seizures or injunctions on the property during that time," adding, "It is most important to complete the ownership transfer registration on the day the balance payment is made."