A monthly rent price list is posted at a real estate agency in downtown Seoul. [Image source=Yonhap News]
[Asia Economy Reporter Kim Hyung-min] In the future, when signing a housing lease contract, landlords must comply with prospective tenants' requests for information regarding the housing's fixed date, rent, and deposit. Additionally, prospective tenants can request a tax payment certificate from the landlord to verify whether there are any outstanding tax delinquencies related to the property.
On the 21st, the Ministry of Justice and the Ministry of Land, Infrastructure and Transport announced the legislative notice of partial amendments to the Housing Lease Protection Act and its enforcement decree containing these provisions. Once approved through the State Council and the National Assembly, the amendments will take effect early next year.
According to the amendment decree, if a prospective tenant requests the landlord's consent to view housing information such as senior priority deposits, the landlord is obligated to agree. Under the current law, landlords could refuse to provide such information, but this amendment makes it mandatory. Prospective tenants will also gain the right to request a tax payment certificate from the landlord. This measure aims to prevent potential damages by allowing tenants to verify tax delinquency status, which they previously could not know unless the landlord disclosed it. The tax payment certificate is a document certifying that there are no other outstanding tax delinquencies except for deferred payment amounts or exemptions related to seizure or sale. If the landlord refuses, the tenant can directly verify delinquency status through the tax office after completing the consent procedure.
The scope of small-amount tenants eligible for priority repayment will be uniformly raised to 15 million KRW, and the priority repayment amount will also be increased to 5 million KRW. For housing located in Seoul, tenants eligible for priority repayment will be those with amounts up to 165 million KRW, and the priority repayment amount will be up to 55 million KRW. The standard housing lease contract will also include special provisions such as ▲the landlord cannot establish a mortgage or other security rights until the day after the tenant registers their residence ▲and if violated, the tenant is entitled to termination rights and claims for damages. A new item for management fees will be added to allow sufficient discussion about management fees before contract signing. The government also plans to expedite the processing of the partial amendment to the Act on Ownership and Management of Collective Buildings, submitted to the National Assembly in March last year. The amendment introduces obligations for managers of collective buildings of a certain scale (50 exclusive units) such as one-room apartments and officetels?where many vulnerable groups like youth and newlyweds reside and where arbitrary increases in management fees without objective grounds have occurred?to prepare management ledgers and keep supporting documents, and to specify detailed management fee items in the standard regulations.
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