Over 500 Inquiries and Complaints Filed in Just Two Days
'Key Q&A' Compiled and Posted on the District Website
"Are apartment sales contracts signed before the implementation date of the Land Transaction Permission System on March 24 subject to land transaction permission?"
"No. If the contract signing date is before the implementation date of the Land Transaction Permission System on March 24, it is not subject to land transaction permission."
When the government and Seoul City expanded the designation of all apartments in the three Gangnam districts and Yongsan-gu as land transaction permission zones on the 19th as part of the 'Housing Market Stabilization Measures,' the real estate market plunged into chaos.
When Seocho-gu, which was initially excluded from the land transaction permission zones, was designated as a permission zone, over 500 complaints and inquiries flooded Seocho-gu within two days, prompting the district to take swift action ahead of the system's implementation on the 24th.
On the 21st at 10 a.m., Seocho-gu compiled a 'Key Q&A' to address residents' questions regarding the 'Designation of Land Transaction Permission Zones' and posted it on the main page of the district website. This was in response to the continuous influx of inquiries from residents about contract signing and land transaction permission procedures following the designation of the land transaction permission zones.
The main contents include whether contracts are subject to permission under the land transaction permission zone designation, application procedures, exceptions to land transaction contract permission, disposal of existing houses, and measures in case of violations. The district organized these topics systematically for easy understanding at a glance.
The district also announced plans to continuously update the website with additional information on frequently asked questions and matters requiring detailed guidance.
Furthermore, notices were sent to licensed real estate agents in the area to minimize residents' confusion caused by the designation of land transaction permission zones. The district plans to closely cooperate with Seoul City and related agencies to monitor and ensure the stable establishment of the system.
For further details, inquiries can be made to the Land Management Team of the Real Estate Information Division at Seocho District Office.
Q. Current status of land transaction permission zones
A. Status of land transaction permission zones in Seocho-gu
- Existing residential permission zones: 2 locations (Seocho Jinhung Apartment, Sinbanpo 2nd Apartment)
· Designation period: August 24, 2024, to August 30, 2025
- Existing natural green area permission zones: 21.38㎢ within the district (Naegok, Sinwon, Yeomgok, Wonji, Umyeon, Bangbae, Seocho, Yangjae-dong)
· Designation period: February 18, 2025, to February 17, 2030
- Expansion of land transaction permission zones: All apartments in the district (260 locations)
· Designation period: March 24, 2025, to September 30, 2025
※ Future re-designation will be decided through the Seoul City Urban Planning Committee
Q. Whether apartment sales contracts signed before the implementation date of the newly designated Land Transaction Permission System (March 24, 2025) are subject to land transaction permission
A. If the contract signing date is before the implementation date (March 24, 2025), it is not subject to land transaction permission.
Q. Whether all real estate (houses, commercial buildings, etc.) in Seocho-gu are subject to permission
A. Buildings subject to permission include all apartments as classified in the building register.
※ Permission eligibility is determined based on the building register at the time of application
※ Existing permission zones, Seocho Jinhung Apartment and Sinbanpo 2nd Apartment, include commercial buildings as well
Q. What are the permitted area thresholds and mandatory usage periods?
Residential areas: over 6㎡
Commercial areas: over 15㎡
Industrial areas: over 15㎡
Green areas: over 20㎡
Areas without designated use zones: over 6㎡
A. Mandatory usage period (actual residence period): 2 years from the date of land acquisition (registration completion)
Q. Procedures for applying for land transaction contract permission
A. Land transaction contract permission procedure
Both parties (seller and buyer) must apply jointly (※ a power of attorney is required for representatives)
Q. Processing time from application to issuance of permission certificate
A. 15 business days from the date of receipt of the application (usually about 3 weeks excluding weekends and holidays), but processing time may be extended depending on the number of applications.
Q. Whether permission is possible if there is a tenant on the property subject to the transaction
A. In principle, if the lease contract period remains on the property, land transaction contract permission cannot be granted. However, since it usually takes 2-3 months to complete the land acquisition (ownership transfer), if the lease contract ends before the acquisition date, permission application is possible.
Q. Exceptions to land transaction contract permission
A. The land transaction permission system does not apply to transactions without consideration such as gratuitous donation or inheritance, and sales of land that has been auctioned three or more times without success under the Civil Execution Act or sold to the Korea Asset Management Corporation.
Q. Is it mandatory to dispose of existing houses?
A. Permission is possible if the applicant is a non-homeowner household head acquiring a residence land for their own use. However, if the applicant owns an existing house, they must provide specific and objective reasons for residing in the area or for acquiring an additional house. Also, a plan for handling the existing house (sale, lease, etc.) must be submitted.
Q. What are the penalties for violating land transaction contract permission?
A. Contracting without land transaction permission may result in imprisonment for up to 2 years or a fine up to 30% of the land price.
A. Enforcement fines are 10% of the acquisition price for non-use or neglect, 7% for leasing to others, and 5% for unauthorized change of use.
Q. Is there an investigation on the actual usage obligation after land transaction contract permission?
A. Buyers have a usage obligation for a certain period after receiving permission, and regular inspections (May to July annually) and occasional inspections are conducted to check for violations.
※ Usage obligation periods: own residence (2 years), agriculture/forestry (2 years), business use (4 years), etc.
Q. Land transactions involving gifts below the permitted area
A. If land originally exceeding the permitted area is gifted below the permitted area after designation and the land is sold to another person for the first time, it is subject to land transaction permission.
Q. If a sales contract is signed without land transaction permission
A. Land transaction contracts without permission are invalid. Those who contract without permission or obtain permission fraudulently face imprisonment up to 2 years or a fine up to 30% of the land price based on the individual publicly announced land price at the time of contract.
Q. Cases exempted from land usage obligation
A. According to Article 14 of the Enforcement Decree of the Real Estate Transaction Reporting Act, usage obligations are exempted in cases such as public interest projects, natural disasters, or other reasons prescribed by Presidential Decree.
Q. Whether move-in rights and pre-sale rights are subject to land transaction permission
A. Move-in rights and pre-sale rights are subject to land transaction permission. However, in Seocho-gu, which is regulated as a speculative overheated district, there are restrictions on pre-sale rights transfers, so confirmation is required for each property.
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