Best Mortgage Lawyers in Taiwan

About Mortgage Law in Taiwan

The Republic of China (Taiwan) has a comprehensive legal system that governs mortgages. The framework provides the rights and responsibilities of both the borrower (mortgagor) and the lender (mortgagee). Under this framework, a mortgage is considered a form of real estate security interest, which grants the lender the right to seize and sell the property if the borrower fails to meet contractual obligations, primarily repaying the loan.

Why You May Need a Lawyer

Applying for or dealing with a mortgage in Taiwan often involves navigating complex provisions and requirements. For instance, you may need a lawyer to help clarify the legal terms of your mortgage agreement, handle legal disputes that may arise, or guide you through the negotiation process. Moreover, if you encounter complications such as default, foreclosure, or refinancing issues, a lawyer's assistance could prove invaluable.

Local Laws Overview

Mortgage laws in Taiwan are primarily governed by the Civil Code. Some of the key aspects include the legal procedure for establishing a mortgage, rights and obligations of the mortgagor and mortgagee, foreclosure and auction process, and the priority of claims in case of borrower's insolvency. Taiwan law also emphasizes good faith in all contractual matters, including mortgage contracts. Consequently, all parties are expected to act honestly and fairly in the execution of their obligations.

Frequently Asked Questions

1. Can a foreigner get a mortgage in Taiwan?

Yes, foreigners can get a mortgage in Taiwan but they must fulfill certain requirements like having a resident certificate, proof of income, and they may need to make a larger down payment compared to local residents.

2. What is the maximum mortgage term in Taiwan?

The maximum mortgage term is typically 30 years. The exact term may vary based on the age of the borrower and other eligibility conditions stipulated by the lender.

3. Can a mortgage in Taiwan be refinanced?

Yes, it's possible to refinance a mortgage in Taiwan. However, it's best to seek legal counsel as the process can be complicated, involving substantial administrative and legal formalities.

4. How are interest rates determined for mortgages in Taiwan?

Interest rates for mortgages in Taiwan are generally determined based on the National Interbank Funding Center's average rates plus a certain increment set by individual banks.

5. Can a mortgage be transferred in Taiwan?

The Civil Code of Taiwan allows for the transfer of a mortgage. Given the legal complexity of such transactions, you should consult with a lawyer to understand all implications and processes involved.

6. What happens in case of default on a mortgage payment?

In case of default, the lender can initiate foreclosure proceedings to recover the unpaid loan amount. The process is mandated by law and requires involvement of court and authorities.

7. How can I contest a foreclosure?

If you believe the foreclosure is unjustified or procedurally incorrect, you can contest it in court. However, this usually requires expert legal advice and representation.

8. Are there any tax implications on residential mortgage loans in Taiwan?

Yes, mortgage loans in Taiwan are subject to certain tax treatments. To understand the full extent of these implications, consulting a lawyer or tax professional is recommended.

9. Can the lender change the terms of the mortgage contract unilaterally?

Any change in the existing contract without the consent of both parties is generally considered illegal. However, certain conditions may be present in your contract that allow the lender to make changes under specific circumstances.

10. Are there penalties for early repayment of the mortgage?

Early repayment of a mortgage loan could attract penalties, depending on the terms agreed upon in your contract. It's necessary to review the contract and consult with legal counsel to understand potential ramifications of early repayment.

Additional Resources

The Taiwan Financial Supervisory Commission and the Ministry of Justice are helpful resources when seeking comprehensive information about mortgages in Taiwan. Additionally, various non-government organizations provide general advice and support for home buyers and mortgage borrowers.

Next Steps

If you need legal assistance in dealing with a mortgage in Taiwan, it's advisable to consult a local lawyer who specializes in mortgage and real estate law. They would help you understand your rights and obligations, guide you through the complexities of the mortgage process, represent your interest in any legal dispute, and help you make informed decisions.