[Beginner's Guide to Real Estate] Why is it called 'Land Permission Transaction' but involves houses? ... Understanding 'Daejijibun'

When trading buildings, not only the building but also the underlying 'land' is traded
Buildings have 'surface rights', and land has 'land rights'

In the case of collective buildings, land rights are divided into 'land shares'
Since land is traded together when trading houses, houses are also subject to permits

For reconstruction apartments, the occupancy area will be calculated based on land shares instead of exclusive area in the future
Commercial buildings are taxed on land ownership based on land shares respectively

[Asia Economy Reporter Lee Chunhee] When you become a real estate reporter, you often get unexpected KakaoTalk messages from friends. "How do I apply for a housing subscription?" "What does first priority mean?" For the 2030 'Burin-i (real estate + beginner)' who only have subscription savings accounts created by their parents when they were young, I am trying to create a guide.

One of the most frequently mentioned terms in the recent real estate market is 'Land Transaction Permission Zone.' In areas designated by the government as Land Transaction Permission Zones, to acquire land exceeding a certain area by use type such as residential, commercial, or industrial zones, prior permission must be obtained from the head of the basic local government by specifying the intended land use. Additionally, the land must be used only for the approved purpose during the specified period.

However, there is something that sounds strange to Burin-i. Media articles say that permission must be obtained for 'land,' but why do buildings such as houses or commercial properties also require permission for transactions and require at least two years of actual residence or business operation?

This is because buildings are, in a way, naturally built on 'land.' Usually, when a building is constructed, the land on which it stands is also transacted together. Otherwise, the rights to the land, called 'Daijigwon (land rights),' and the rights to the building, called 'Jisangwon (surface rights),' would be separated, which could complicate future sales. Therefore, when purchasing a building, you must confirm whether the Daijigwon is also transferred along with it.

But what happens when trading units within a building, such as apartments or shopping complexes, divided by room? In this case, the rights to the land are divided into 'Daijijibun (land share)' according to the area of each unit and allocated accordingly. Therefore, when trading houses, since the land on which the house is built is also transacted together, under the designation of the Land Transaction Permission Zone in the Yongsan-gu area, if the Daijijibun exceeds 18㎡, all houses must obtain land transaction permission.

This is why it is essential to carefully consider the Daijijibun when purchasing a reconstruction apartment. If you are not planning to live in the apartment immediately but intend to rent and move in after completion, the current exclusive area, building location, or floor are not very important. These conditions can change during the cooperative member allocation process anyway.

However, since the Daijijibun does not change even if the building is completely demolished, you must thoroughly examine the Daijijibun to understand the approximate size of the new apartment you can receive during the allocation process. When reconstructing or redeveloping, the calculation of 'how many pyeong (Korean unit of area) of residence rights you can get if you buy this' is based on this Daijijibun.

Details regarding the land share in the registration certificate of an apartment in Seoul.

This photo shows a part of the registry of an apartment in Seoul related to Daijijibun. In this apartment, if reconstruction occurs later, the new apartment's move-in area will be based not on the current exclusive area of 84.99㎡ but on 40.11㎡.

Also, even for units of the same size within the same complex, the Daijijibun can differ slightly by building, sometimes varying by 5 to 10㎡. Considering that during the appraisal process for reconstruction and the subsequent cooperative member allocation, several million won per 3.3㎡ can be involved, it is crucial to accurately assess the Daijijibun of the property.

Daijijibun also becomes a point of controversy regarding taxes for commercial properties. In the case of apartments, official prices are set differently by floor and building, so there is no issue. However, for commercial properties, the land portion is assessed based on the official land price, and the building portion is assessed based on the standard market price. In this case, the land portion is uniformly divided and taxed according to the Daijijibun ratio regardless of the floor. In other words, whether a person owns a 100㎡ store on the first floor or a 100㎡ store in the basement of the same building, if the Daijijibun is the same, the land portion of the property tax is the same.

However, the utility of commercial spaces varies by floor, such as basement, first floor, and second floor. Therefore, in actual transactions, even with the same Daijijibun, the market price per area of the share is traded differently. Consequently, there are complaints that it is unfair for basement commercial property owners to pay the same land portion property tax as those on the first floor.