Input 2021.01.09 07:00
As various regulations are piled up as measures to stabilize housing prices, and tricks to overcome them have emerged, real estate transactions are diversifying. Real estate experts pointed out that as house prices continue to rise and become a seller’s dominant market, such a complex transaction is also concluded.
According to the Urban and Residential Environment Improvement Act (hereinafter referred to as the Provincial Government Act), in the case of Seoul, which is an overheated speculative district, resale of tenant rights after the approval of the management plan is prohibited for areas that have applied for project implementation authorization after January 24, 2018. However, it was allowed to sell tenant rights only in some exceptional circumstances, one of which is when a member meets the requirements such as ten years residence and five years retention.
The problem arises from the fact that even if it meets the requirements, if you are a multi-family home owner and have multiple tenants, you cannot sell only one tenant. According to the current provincial law, these tenants should be sold collectively if they want to sell them. For example, a member who has two tenants cannot sell only one tenant ticket and the other one, and must sell all two tenant tickets.
An official in the maintenance industry said, “It is stipulated in the Provincial Law that the number of members should not increase as a measure to protect the interests of a union that has been authorized to establish a union. Because of this, even if you have multiple tenant rights, you can divide them and sell them to increase the number of members. “No.”
However, as housing regulations have recently been strengthened, the tax burden has increased and the number of channels for money loans has decreased, and union members who want to sell only part of their tenant rights have emerged. Thus, the way we squeezed our head is the equity transaction of tenants. The member sells 99% of the occupancy rights to the buyer first, and then transfers the remaining 1% when the new apartment is registered.
The rights to 99% of the shares sold are guaranteed through notarization or provisional registration (preliminary registration for preservation of their rank in preparation for the future main registration pursuant to Article 3 of the Real Estate Registration Act), etc. . An official in the maintenance industry said, “It is a kind of transaction in the form of trading reservations,” and “It is a kind of trick to find a way to trade by registering shares of only part of the collateral I have.”
There have been such deals in the past. This method was used when a member who received an apartment and a shopping mall in a reconstruction/redevelopment project site wanted to sell only the shopping mall separately. In principle, it is necessary to hand over all the member status for apartments and shopping malls, but when the registration is made later, the name is handed over and some shares are handed over in advance.
An official in the trust industry said, “It may be a somewhat unfamiliar transaction method for homeless people who are buying a house for the first time in their lives,” but said, “Considering that the real estate sale is made by contracts between signs, it is not difficult to contract.”
In fact, some officials from brokerage firms and maintenance industry officials believe that the transaction is not particularly problematic. As part of joint investment, there is no problem. An official in the maintenance industry said, “It may be annoying because it is a long-term joint investment, but it may be a way to buy good products cheaply if you secure safety devices such as notarization, temporary registration, and root mortgage setting.”
However, real estate experts warn that buying and selling shares of tenants is a complex transaction that is different from simply buying and selling a house, so there are hidden risks. This is because the current policing law is so complex that even experts make mistakes.
Eun-mi Choi, an attorney specializing in real estate at the law firm Seodam, said, “Considering that the sale of shares of tenants may be restricted according to the current law and the association’s articles of association, and the timing of the partnership’s business promotion is different, you must check concretely with the association’s office and a lawyer, etc. He said, “There is also a risk of cash liquidation, so be careful when signing a contract.” In addition, Choi added, “Because the court ruling on the sale of shares in tenants may come out differently for each specific case, it should be noted that certain rulings may not apply to your situation.”
In addition, it is also subject to consideration that joint investment may involve a number of unexpected risks. For example, there may be disputes over taxes. From the seller’s point of view, as the stake exceeds 99%, the buyer may think that the tax on the relevant tenant should be paid by the buyer, but the buyer’s opinion may be different. Even if the name has not been passed on yet and only part of the payment is made, taxes are charged according to the situation of the seller, and it is not clear how far to bear. In the case of a single-homed seller and multi-homed, the tax differs greatly.
Another problem is that there are many variables before a new apartment is registered and registered at the reconstruction and redevelopment project site. Even if a new apartment is built and completed, the interests of the union may be entangled and registration may not be possible in time. For example, Helio City in Songpa-gu, Seoul, which was completed in December 2018, has not been registered for the second year of its tenancy. Problems can also arise from the recently strengthened fund source clarification problem. If the gap between the purchase of 99% of the tenant right and the time of transfer of the name is large, a headache may occur.
KB Kookmin Bank Senior Real Estate Expert Park Won-gap said, “It is difficult for such a complex transaction to be completed if the market with the advantage of buyers who can choose the desired housing without problems,” he said. “As the housing market is surrounded by layered regulations, I have been questioning this type of transaction. It is deplorable to have to arrange a house.”