In the future, even if housing lease agreements are not reported within 30 days after they are drafted, unless there is intentional delay or false reporting, the burden of fines will be reduced. The maximum amount of fines will decrease from 1 million won to 300,000 won.

The Ministry of Land, Infrastructure and Transport noted on the 11th that it will announce a legislative notice of the amendment to the "Act on the Reporting of Real Estate Transactions" by the 24th of next month. The amendment is expected to be implemented in the first half of this year.

<YONHAP PHOTO-4066> The average rental price of APT. in Seoul surpasses 24 million won per 3.3㎡ again after 1 year and 7 months. (Seoul=Yonhap News) Reporter Ryu Hyo-rim reports that the rental price of APT. in Seoul continues to rise for over a year, and the average rental price has exceeded 24 million won per 3.3㎡. According to the housing price statistics from KB Real Estate, the average rental price of APT. per 3.3㎡ in Seoul was recorded at 24.17 million won in July. The photo shows a real estate agency in Seoul on that day. Aug. 7, 2024 /Courtesy of Yonhap News.

According to the amendment, the maximum fines for simple delayed reporting will be reduced from 1 million won to 300,000 won. Currently, landlords and tenants who do not report rent within the deadline face fines of up to 1 million won each, depending on the contract amount and the delay period.

For example, if a transaction worth over 500 million won is not reported for over two years due to a simple mistake, fines of 1 million won were imposed.

The government implemented a rental reporting system in June 2021. Parties to the contract must report personal information, the location of the subject property, type, area, deposit, and contract period. Reporting the contract is considered as having received a confirmed date, thus helping to prevent victims of lease fraud.

The intent was to enhance transparency in the rental market through information disclosure and to protect tenants' rights by overcoming information asymmetry between landlords and tenants. However, considering the need for public promotion, the reporting obligation has only been imposed for four years without fines. The grace period for not imposing fines will end on May 31.

However, in cases of false reporting, the current maximum fines of 1 million won will be maintained. The Ministry plans to establish a system by June of this year to automatically send notification messages to inform individuals that they are subject to the rental reporting requirement if they only apply for a confirmed date at the community center without reporting their rental transactions.

Park Jeong-hyeok, head of the housing lease planning team at the Ministry, said, "Through this amendment, we will be able to avoid imposing excessive burdens on ordinary tenants who have delayed reporting due to simple mistakes," and added, "We plan to work on preventing delayed reporting of rental transactions systematically rather than using monetary sanctions and to increase the reporting rate through active promotion."

※ This article has been translated by AI. Share your feedback here.