Houses subject to the sale price limit system, tenants must reside for 2 to 5 years

Input 2021.02.16 11:00

Reconstruction charges and the disclosure rate at the end are applied to the start time
Revision of the Enforcement Decree of the Housing Act and Reconstruction Excess Profit Recovery Act

Starting on the 19th, tenants of houses subject to the pre-sale price limit system must reside for at least two years, even if they are supplied from private housing sites.

The Ministry of Land, Transport and Maritime Affairs held a cabinet meeting on the 16th of the amendment to the Enforcement Decree of the Housing Act, which contains the contents of the tenants’ period of residence, and the reconstruction charge related to the reconstruction charge. Said it passed.

The revised housing law enforcement decree is a follow-up measure to the housing law revised in August of last year, and the tenants of the housing subject to the pre-sale price limit system have a mandatory period of residence of 2 to 5 years. If the obligatory period of residence is not met, the housing must be sold to a public housing provider such as the Korea Land and Housing Corporation (LH).

Accordingly, even for houses built and supplied in private housing, the pre-sale price ceiling was applied, and if the pre-sale price was 80 to 100% of the sale price of a nearby house, it was mandatory to live for two years. In cases where the sale price is less than 80% of the housing supplied to private housing, the mandatory residency period is extended to 3 years. For houses supplied with public housing, if 80 to 100% of the purchase price of the housing in the neighborhood is 3 years, and if it is less than 80%, 5 years is the mandatory residence period.

The Enforcement Decree extended the restriction period for resale of houses specially supplied to employees of administrative multi-city relocation agencies to a maximum of 8 years. Accordingly, compared to before the revision, the overheated speculation zone has been reinforced from 5 to 8 years, and the regions other than the overheated speculative zone have been strengthened from 3 to 5 years.

In addition, in areas where measures such as group restrictions have been taken to prevent infectious diseases, the housing association general meeting has been improved to be held electronically.

The Enforcement Decree of the Revised Reconstruction Excess Profit Recovery Act established a calculation method so that the disclosure rate at the end of the project can be applied equally when calculating the housing price at the start of the project. This is to solve the problem that the reconstruction charge is calculated high according to the published price realization policy. It is part of the follow-up to the 6.17 countermeasures.

The Enforcement Decree also stipulated the procedure for allowing the head of a basic organization to request the Korea Real Estate Agency to verify the reconstruction charge. Accordingly, the mayor, the head of the county, and the mayor of the ward can request the Korea Real Estate Agency for verification if necessary for notification of the estimated amount of reconstruction charges, determination and imposition. The Korea Real Estate Agency can verify whether the housing price and development cost have been properly calculated, and if necessary for an investigation or verification, a judging group or an advisory committee composed of external experts can be formed and operated.