In a lawsuit related to the right to apply for contract renewal among the lease protection laws that took effect on July 31 of last year, the court ruled that the tenant’s right to request a renewal takes precedence over the landlord’s right to live. Even if the new landlord (buyer) bought the house for the purpose of living, if the existing tenant exercised the right to request renewal to the previous landlord (seller), the lease contract should be extended.
In the legal world, there is a saying that “the interpretation of the authority of the Ministry of Land, Infrastructure and Transport has been recognized by the court as it is”, but “the result may vary depending on the timing of exercise of the right to apply for contract renewal and the timing of registration of the transfer of ownership of the buyer.”
“Exercise and validity of request for renewal before registration of ownership rights”
According to the real estate industry and legal circles on the 23rd, Judge Yoo Hyun-jung, who was solely responsible for civil affairs in the Suwon District Court, ruled against the plaintiff in the first trial of a building surrender lawsuit filed by landlord Kim Mo and others against tenant Park Mo on the 11th.
Plaintiff Kim bought a house in Suji-gu, Yongin, Gyeonggi-do for the purpose of living in August last year. Park, the tenant of this house, had made a global drug agreement with Choi Mo, the existing landlord, from February 2019 to February 2021. At the time of the sale contract, Mr. Choi informed Park, “I am going to sell my house,” and “It seems that it will be difficult to extend the world medicine as the new landlord buys it to live.” Park also replied, “I will look for a new house.” Buyer Kim concluded a trading contract, seeing that it would be possible to live in real life.
However, in September of last year, a month after the signing of the contract, Park changed his position to the existing landlord, saying, “I will be able to exercise the right to apply for renewal of the contract after learning (new lease protection law).” In response, Mr. Kim sent a proof of the contents stating that “I will refuse the renewal request because I will live in real life,” and filed a lawsuit.
The court raised the tenant’s hand. This is because Mr. Kim paid the balance 3 months after signing the trading contract and completed the registration of the transfer of ownership in November. The court judged that “the defendant, who is the new landlord, has completed the exercise of the right to apply for renewal of the contract to the former landlord before the new landlord completes the registration of the transfer of ownership.”
Building delivery, damage compensation, contract invalidation lawsuit
Since the enforcement of the new lease protection law, there has been a controversy over whether the right of residence of the landlord who purchased the house for the purpose of real residence or the right to apply for contract renewal between existing tenants should be given priority.
According to the new lease protection law, tenants can exercise their right to apply for contract renewal 1 to 6 months before the end of the lease contract. The Ministry of Land, Transport and Maritime Affairs said that if a new landlord refuses to renew the contract for the purpose of living, he must pay the balance before exercising the right to apply for contract renewal, that is, at least six months before expiration of the global drug, and then complete the registration of the transfer of ownership.
It is also known that Hong Nam-gi, vice-prime minister and minister of the Ministry of Strategy and Finance, sold the house in Uiwang, Gyeonggi Province in August last year, and only after the sale contract was signed, the tenant exercised the right to request renewal and eventually paid a small amount of compensation.
As the controversy continued, the Ministry of Land, Infrastructure and Transport revised the Enforcement Rules of the Certified Brokerage Act in February to stipulate whether or not tenants exercise the right to apply for contract renewal when contracting for home sales. However, legal disputes are continuing over contracts concluded during the legal gap or tenants change of mind.
Legal lawsuits are expected to continue. Representative Lawyer Eom Jeong-sook said, “The number of related consultations has increased by more than 30-40% since the enforcement of the new lease protection law. There are also a lot of lawsuits,” he said. Representative attorney Shin Tae-ho also predicted, “As the new lease protection law is rushing, there are many holes in the law, and confusion continues.” “The lawsuit will continue until the Supreme Court’s traffic control.”
Reporter Shin Yeon-soo [email protected]