Claim to undo a purchase as unauthorized dismissed on apparent authority
Co-heirs sued to cancel our client's title to property sold by another co-heir on their behalf; the court recognized apparent authority and dismissed all claims.
How the case unfolded
Background
Through a licensed broker, our client bought an inherited property for about KRW 245 million and registered the title. The seller was one of the co-heirs, who signed on behalf of the other heirs using their registered seals and documents. The other heirs later claimed they had never granted authority and sued to cancel the registration of their shares.
Issues and ruling
The court found that the seller lacked authority to sell, but that he had basic authority because the heirs had entrusted him with managing the property, including leasing. Since our client contracted through a broker at a market price and checked the seal certificates, power of attorney and title certificate, our client had good reason to believe the seller was authorized (apparent authority under Article 126 of the Civil Act).
Outcome
All claims were dismissed, and the opposing parties were ordered to bear the litigation costs.
This is the outcome of an individual case and does not guarantee the same result in similar matters. Some facts have been generalized to protect the parties involved.
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