Between viewing and closing, a buyer in Taiwan meets three key documents: the property disclosure statement (不動產說明書), the offer letter (要約書) or earnest money (斡旋金), and the sale contract (買賣契約書). The industry calls them “three documents and one contract” (三書一約); the fourth item is the listing agreement between the seller and the agent, which concerns the buyer less. Confusing the order and legal effect of these documents is how buyers lose ground in negotiation, or lose their earnest money outright.
The question we hear most often at viewings is whether to use an offer letter or earnest money. The rules are explicit: the buyer has the choice and the agent cannot force it. This guide covers what each document does, the difference between the two offer tools, and what to check at the signing table. For transaction safety, see escrow explained.
Three documents, three jobs
- Before signing: the disclosure statement discloses the property’s condition and rights.
- At offer: the offer letter or earnest money expresses your bid. The buyer chooses which.
- Forming the legal relationship: the sale contract, known as the private contract (私契), in four copies.
(Based on the Fair Trade Commission’s guidance and the Ministry of the Interior’s model offer letter; data as of July 2026.)
What the documents are for
The disclosure statement is about information: the property’s condition, rights and legal restrictions. The offer letter or earnest money expresses a bid. The sale contract creates the formal legal relationship, fixing the price, payment terms and handover date. The listing agreement (委託銷售契約書) is between the seller and the agent, covering listing price, period, commission and whether the listing is exclusive or open; it is worth a look to confirm the advertised terms match what the seller agreed.
The order is fixed: disclosure statement at the viewing stage, offer letter or earnest money at the bidding stage, sale contract only after the bid is accepted. Knowing this lets you ask the right question when an agent tries to skip a step.
The disclosure statement: a health report before signing
Under the Real Estate Broking Management Act (不動產經紀業管理條例), the agent must give the buyer a disclosure statement before viewing or negotiation. It covers at least: location and area, ownership and any registered encumbrances, current use, community rules, legal restrictions, surroundings and the terms of sale. Its purpose is to let you see the real state of the property before deciding, instead of relying on what the agent says.
The most common problem in practice is the disclosure statement saying one thing and the contract another: the location of the parking space, whether an extension is legal, whether the property is tenanted. Cross-check all three documents and make sure every important condition (scope of rights, extensions, leases) appears in each.
Our view: A disclosure statement that says one thing and a contract that says another is the single most common source of trouble. If anything in the ownership, encumbrance or legal-restriction fields is unclear, have the agent explain it line by line on the spot. Do not sign on the strength of “that’s fine”.
Offer letter versus earnest money: the buyer chooses
Under point 9 of the Fair Trade Commission’s guidance for real estate brokers (公平交易委員會《對於不動產經紀業之規範說明》), before collecting earnest money the agent must inform the buyer in writing of the difference between an offer letter and earnest money and let the buyer choose freely. Earnest money cannot be demanded. You are entitled to say “I want to use an offer letter and pay no earnest money”, and the agent cannot lawfully refuse. How much earnest money is normal, when it is refundable and where the traps are: see earnest money.
Offer letter: no money up front, but a penalty risk
An offer letter is a written offer stating your price and payment terms, passed to the seller by the agent. No money changes hands, and by law you have a review period of at least 3 days. Until the seller accepts (signs) within the offer’s validity period, you can withdraw. Once the seller’s acceptance is delivered, the sale contract exists, and whoever backs out usually pays the agreed penalty, commonly 3% of the price.
Earnest money: pay to show sincerity, refunded in full if talks fail
Earnest money is a sum, commonly 1 to 2% of the price, handed to the agent to negotiate on your behalf. If the seller does not accept, it is returned in full without interest. If the seller accepts your price, it automatically becomes a deposit (定金) and the contract exists. From that point a buyer who backs out forfeits it; a seller who backs out must return double.
Our view: Once the seller agrees, the two carry the same legal weight; the difference is whether you pay first. If funds are tight or you are still comparing homes, use the offer letter. Use earnest money only when you are sure about this home and want a more persuasive bid.
Earnest money forms: five clauses that must be written in
There is no government template for the earnest money form. Each agency designs its own receipt-style document, so formats vary, and templates circulating online are often old or simplified. Only the offer letter has an official template: Appendix 2 of the Ministry of the Interior’s model listing agreement (不動產委託銷售契約書範本), downloadable from the ministry’s real estate information platform. Whichever form you are given, check these five clauses before signing.
| Clause | What to check |
|---|---|
| 1. Property details | Address, parking space and area match the disclosure statement; “with parking” or “without parking” stated clearly |
| 2. Offer price | Your bid, with figures and words matching; no handwritten corrections |
| 3. Negotiation period | Commonly 3 to 10 days; the exact expiry date and time must be written, not “one week” |
| 4. Refund terms | When the money is refunded (seller declines, period expires); refund deadline commonly within 5 working days |
| 5. Breach terms | What happens if the buyer defaults after conversion to a deposit; whether the seller must return double |
Our view: The amount (commonly 1 to 2% of the price), the negotiation period (3 to 10 days) and the refund deadline (5 working days is typical) vary between agencies. Ask about each clause before signing and photograph the form. If you are unsure, you can simply say “I want to use the Ministry of the Interior’s offer letter instead”; that is your legal right.
The sale contract: the formal deal
Once the bid is accepted, buyer and seller sign the real estate sale contract in person. It covers the property, the total price, the payment dates (usually signing, sealing, handover and loan disbursement stages), the handover date and breach liability. A private sale between individuals has no statutory review period (that rule applies only to business-to-consumer contracts), so ask about anything unclear on the spot and do not rush. Above all, the price must go into an escrow account (履約保證, a third-party account held by a bank or building management company), never a personal account. That is the last line of defence.
Signing-day checklist
| Item | What to check |
|---|---|
| Number of copies | Four: buyer, seller, agency and escrow provider each keep one |
| Where the money goes | Into the escrow account, never a personal account |
| Price | Matches the negotiated figure; raise any difference immediately |
| Conditions | Clauses such as “if the loan falls short, the buyer may cancel without penalty” take effect only once both sides confirm them |
| Who attends | Buyer, seller, agent and land administration agent (代書, the licensed professional who handles title transfer) all present; anyone absent must provide a seal certificate and power of attorney |
Our view: Have the taxes and transfer fees ready before signing so cash flow does not stall; the full list is in buying and selling costs. If you are also selling, see housing and land income tax.
FAQ
Which documents are the “three documents and one contract”?
The disclosure statement, the offer letter (or earnest money), the sale contract, and the listing agreement between seller and agent. The first three concern the buyer directly.
Do I have to choose earnest money?
No. Under the Fair Trade Commission’s guidance, the agent must tell you in writing that you may choose either tool before collecting earnest money, and cannot demand payment. The choice is entirely yours.
Can I withdraw an offer letter?
Before the seller’s acceptance, yes, at no cost. Once the acceptance is delivered, the contract exists and backing out usually means paying the agreed penalty, commonly 3% of the price.
Is earnest money refunded if the negotiation fails?
Yes. If the seller does not accept or the period expires, it is refunded in full without interest. Once the seller accepts, it becomes a deposit and a buyer who backs out cannot recover it.
What should I look for in the disclosure statement?
Location and area, ownership and encumbrances, current use, legal restrictions and terms of sale. If it differs from what you were told, have the agent clarify each point on the spot and add it in writing.
Where should the money go at signing?
Into a third-party escrow account at a bank or building management company. Never into the seller’s or the agent’s personal account.
Is there an official earnest money template?
No. Earnest money forms are designed by each agency. The offer letter does have an official template from the Ministry of the Interior, on its real estate information platform. Whatever form you receive, check the five clauses above.
Know the order and your options
Read the disclosure statement line by line, remember that the offer tool is your choice, and check where the money goes and what conditions the sale contract carries. See the buying hub or contact us for a free clause review.