Court “Must recognise individual sales qualification for multi-household goods”
After 11 years of interpretation of the Ministry of Legislation, the confusion is likely to grow

An apartment in Hak-dong, Gwangju. Hankyung DB
Confusion in the maintenance industry is growing as the court judges that each multi-homed person should be given a pre-sale qualification in the redevelopment area. This is because it is opposed to the existing legal interpretation that only one of the several houses is authorized for sale.
According to the legal circles on the 8th, the Supreme Court decided to dismiss the ruling of the Gwangju High Court in June last year. It means that there was an appeal, but without further scrutiny, the second trial ruling was valid. The judgment of the second trial, which overturned the first trial and recognized the individual sales qualifications for the goods of multi-households, was confirmed.
The start was when some members of Hakdong District 4 in Gwangju filed a lawsuit for confirmation of the right to sell. They each received some of the real estate owned by one person after the approval for the establishment of the association in Hakdong District 4. After that, each member even completed the application for pre-sale. However, the union decided on a management disposition plan with the content that only one person would be eligible for pre-sale. This means that although several real estates were divided, only one new apartment was allocated for all of them.
The association made this judgment based on the’Urban and Residential Environment Improvement Act’. The Provincial Law stipulates that if the goods of multi-homed people are sold and owned by multiple people after the establishment of the union, one of them should be designated as the representative union member. The logic of the union is that only one person has the qualification for sale as there is only one member of the representative union.
The same was true of the interpretation of the law. A controversy over whether only one member of the union member should be recognized as a separate member of the sale should be treated separately. Since then, the maintenance industry has dealt with the qualifications for sale of real estate for multi-homed people in accordance with the interpretation of the Ministry of Legislation.
However, the judgment of the Gwangju High Court is the opposite. Excluding one member of the representative union, the court decided on the membership qualifications of the owners of land, etc. The Provincial Government Act stipulates that those who take over after the management and disposition plan are not eligible for membership. However, there are no regulations to deprive members of membership in the case of those who take over after the approval of the establishment of the union. In the process of the redevelopment project, the establishment of a cooperative is in the early stage and the management and disposal plan is in the final stage.
Accordingly, the court decided that the other owners of land, except for the representative union member, could not be treated as a complete non-member by law. It means that several people have membership qualifications, but register a representative union member who will represent their opinions with the union for convenience.
In addition, I thought that they could also recognize their own sales qualifications. The Provincial Government Act stipulates that the qualification for sale of redevelopment projects is not’applications made by a union member’ but as’applications by the owner of land, etc. Owners of land, etc. that do not meet the standards may be excluded by separately determined by municipal or provincial ordinances. However, the’Ordinance for Urban and Residential Environment Improvement’ of Gwangju recognizes those who own houses before the management and disposal plan as landowners. This means that even those who took over the houses of multi-homed people after the establishment of the association and before the management plan. The Judge explained that it is reasonable to think that, unlike the case of exercising procedural rights such as voting rights, each application for sale can be exercised.
The court pointed out that there is no prestigious regulation to deprive the owners of land, etc., from applying for sale of land, except for representative union members. The Ministry of Justice said, “If the qualification for sale is separately determined, it is to prevent speculation such as’split split’.” Restricting applications is not acceptable.”
After the decision was finalized, it was announced later, and the maintenance industry was disturbed. This is because a lot of confusion is expected in the practice of recognizing the pre-sale qualification even for items of multi-homed people who have not recognized the pre-sale qualification.
However, it is unlikely that similar lawsuits will increase out of control. This is because a lawsuit for canceling a management disposition plan to obtain recognition of the pre-sale qualification must be filed within 90 days from the date of disposition. Even if an annulment lawsuit is filed after the filing period for cancellation lawsuits, a lawsuit cannot be filed if the project has been completed after the transfer notice has ended.
The legal community believes that traffic control by the Supreme Court for redevelopment pre-sale qualifications is necessary. In the case of this case, although the dismissal of noncontinuity of the hearing was made, the exact interpretation of the Supreme Court did not come out. In the Seoul Administrative Court, an appeal trial is pending in the Seoul High Court after an exact opposite conclusion was drawn on a similar case. Centro Lawyer Kim Jung-woo said, “It is meaningful that the first ruling to recognize individual sales qualifications has been issued.”
Reporter Hyungjin Jeon [email protected]