Initially, the land transaction permit area is a "limited" regulatory device for land in areas scheduled to be developed. Targeting all apartment transactions is considered the first-ever "strongest" in history. For this reason, complaints about signing transaction contracts and land transaction permit procedures have been made one after another among end users under the land transaction permit zone system.
Maeil Business Newspaper summarized in detail whether the transaction contract is subject to permission, procedures related to application, exceptions to land transaction contract permission, whether to dispose of existing houses, and measures to be taken in case of violation.
We need to check the building register to see if it's subject to regulation
In the case of a residential area, if the land area is more than 6㎡ (about 2 pyeong), a transaction permit must be obtained from the head of the competent local government. In other words, it will be targeted regardless of the size of the apartment. Only those who can actually live for two years from the land acquisition date (in the case of apartments, registration date) can obtain permission to trade.
The application for contract permission must be jointly made by the seller and the buyer. If you have an agent, you need a power of attorney. Usually, three weeks after the application, whether to permit the transaction is decided. However, if holidays are included or the number of applications is concentrated at the same time, the period may be extended.
The government targeted "apartments" this time by grouping 3 Gangnam districts and Yongsan-gu into land transaction permit zones. At this time, the apartment is an 'apartment under the Building Act'. The Enforcement Decree of the Building Act stipulates that apartments are "houses with five or more floors used as houses."
Recently, however, there are new villas in the form of apartments, so it may be confusing whether they are subject to regulation if you look at the legal definition. At this time, it is recommended to issue a building ledger. If it is located in Gangnam 3 districts and Yongsan-gu and is listed as an "apartment" in the building register, it is subject to a land transaction permit area. Apartment alone is no exception.
For this reason, officetels, villas (multi-family, alliance), and shopping malls are not subject to transaction permission in principle. However, the places that were already designated as land transaction permit zones before March 24 this year are also included in the permit, so it must be checked.
In addition, if the sale contract date is before March 24, it will not be included in the land transaction permit even if the balance has not yet been paid. Areas previously grouped as land transaction permit zones, such as Jamsil, Samsung, Cheongdam, and Daechi-dong, are not subject to the system for sale contracted from February 13 to March 23.
There are various restrictions to buy houses within the land transaction permit area.
First of all, unless there are special circumstances, the balance must be paid within three months from the contract date. From the buyer's point of view, it means that the purchase can be made only when there is a certain amount of money mobilization.
In addition, it is advantageous for all household members to obtain permission to trade only when they are homeless. If you already own a house, you can apply for a transaction contract permission "in principle," but you must submit a plan for handling (sale and rental) of existing houses and objectively and specifically explain why you should live in the area. It is important to note that permission may not be granted because it is likely to be a fairly demanding condition.
You cannot get permission for a land transaction contract if you have an apartment with a lease term remaining. However, if the lease term ends before the balance payment date arrives, that is, if the remaining contract period is short, an application for permission may be made exceptionally. Even at this time, it should be clarified through evidence that the lease contract will expire by the date of payment of the balance. In particular, it is not a problem in the future only when it is confirmed that there is no "implicit renewal" for the current tenant.
In principle, public land transactions, in which two or more people share their shares, it is a principle to determine whether each share is subject to permission. However, if household members such as couples and families acquire shared shares, it is regarded as the acquisition of the same person. This means that the total area of the acquired shared stake is added to determine whether the area is subject to permission.
It is excluded from auction and holding, but thoroughly checked
Most transactions related to apartments are subject to permission, but there are exceptions. Representatively, there are cases of buying successful bids through auctions, apartments that have won subscriptions, and holding land sold by reconstruction associations. However, all of these cases will also be subject to land transaction permits for "secondary transactions" that occur after the issue.
The land transaction permit system is not applied if an auction under the Civil Execution Act or the Korea Asset Management Corporation purchases an apartment that has been auctioned more than three times.
According to the Enforcement Decree of the Real Estate Transaction Reporting Act, those who subscribe to an apartment and win are not subject to transaction permission. This means that people who have been sold a new apartment in the land transaction permit area can lease a deposit without moving in. Apartments sold in Gangnam 3 and Yongsan 3 districts are subject to a ceiling on the sale price, so they must move in three years after completion, but they may not be subject to mandatory residence depending on the difference in the surrounding market price. In fact, Raemian One Ferla or DH Bangbae were not actually subject to residential obligations.
The pending land is the amount left by the reconstruction and redevelopment association without being sold. It usually occurs to prepare for lawsuits or omissions of members due to a mistake in equity. Leaving a holding area is a union obligation. There are no restrictions on subscriptions for these sales, and there are many royal floors and royal buildings. It doesn't matter if you are a member of the maintenance business, don't have enough additional subscription points, or if you are a multi-homeowner.
The announcement of the sale of the holding site is generally posted when the moving schedule is imminent. It is recommended to check the Seoul Metropolitan Government's "Information on Maintenance Projects" website from a few months before moving in after selecting a few complexes of interest. However, it is important to remember that bidding is possible only when you have enough cash as you have to prepare the middle payment and balance of apartments in a short period of time.
Other cases in which transactions are made without compensation, such as free gifts and free inheritance, and reasons for natural disasters may be subject to exceptions to the transaction permit.
Penalty up to 10% for violations even if authorized
In case of violating the land transaction permit system, there is a fairly high level of punishment.
First, if a contract is signed without a transaction permission, imprisonment for up to two years or a fine equivalent to 30% of the official price at the time of the contract will be imposed. It goes without saying that the transaction will be nullified. Violation of the law after permission will result in enforcement penalties. 10% of the acquisition price is if the house is not used or left unattended, 7% is leased to another person, and 5% is when the purpose of use is changed without permission. Each year, local governments conduct an investigation to ensure that buyers are using it for the purpose of land transaction permits. Regular investigations are conducted between May and July every year, and frequent investigations are also conducted to check for violations.
Reconstruction and redevelopment projects are expected to be cautious in transactions after approval of management and disposal plans. When a management and disposal plan is received, it is traded as a right to move in, because it is also subject to permission under the land transaction permit system. In other words, you have to live for two years from the date of acquisition.
However, buyers who purchase the right to move in after approval of the management and disposal plan will be subject to fines for failing to comply with their two-year obligation to live in the country if they move to demolition within two years. Some local governments are considering granting the transaction by receiving a pledge to keep the actual residence obligation after the completion of the project, but the exact guidelines have not yet been set.
[Reporter Son Dongwoo]
