Housing Lease Protection Act

 

 

 

The following is major amendment for Lessee from July 31, 2020;

1. Lessee can ask renewal once, so totally 4 year-long lease term guaranteed.

2. Rent price is frozen in 5% cap, even can't raise it without a proper reason with agreement with the lessee

3. For renewal claim, landlord can refuse if he want to move in by himself.

If this is the case, lessee can check it after a certain period,

 

 if it's a lie, there will be a penalty to the landlord.

 

The Housing Lease Protection Act[3] (주택임대차보호법/住宅賃貸借保護法) was enacted in 1981 (Law No.3379) with respect to the lease of residential buildings as a special act of the Civil Act.[4]

Its purpose is to secure stability in the residential life of national citizens, by providing for special cases to the Civil Act, with respect to the lease of buildings for residence (Article 1). It applies to lease of the whole or part of buildings for residence (usually referred to a "house"). This provision also applies in cases where a part of a leased house is used for any purpose other than residence. Article 2.

Even though it is not registered [it means no preferential status in terms of law], if the lessee has completed delivery of a house and the resident registration, the lease shall take effect against the third person from the following day thereof. In such cases, the resident registration shall be considered to have been made at the time of the moving-in report [it means a fixed date-time stamp in relation to competing creditors]. Article 3(1).

 

Latest Amendment to the Act

In July 2020, being forced to set anxious tenants at ease, the Moon Jae-in government and the ruling party hurried to amend the Housing Lease Protection Act. The amendment to the Act guaranteeing lease renewals, putting a cap on rent prices and enforcing mandatory disclosure of rent rates came into force on July 31, 2020 immediately after the ruling party-dominated National Assembly passed the bill the previous day.

 

Any questions, please feel free to send me an email to jz@taxjz.com

 

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Joseph SY Zoh

CPA, California, a member of AICPA  |  Jz Associates/Tax Accounting Firm Hae-An

F:+82-31-273-5078  |  Skype: joezoh  |  Email: jz@taxjz.com

Web : www.taxjz.com  |  Blogs: www.koreantaxblog.com

Korean Tax Blog

since 1981-
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