The government and Seoul city concluded that the 'residential rights' for redevelopment and reconstruction are included as targets for land transaction permits. It is also subject to land transaction permits if transferring 'subscription rights' to a third party. However, subscription rights arising from the initial purchase of dwellings through subscription are not subject to permits.
The Ministry of Land, Infrastructure and Transport and Seoul city announced on the 21st that they have prepared the operational guidelines for the land transaction permit area (land transaction permit area).
After the reassignment of the land transaction permit area in the three districts of Gangnam (Gangnam, Seocho, Songpa) and Yongsan last month, the Ministry of Land and Seoul city established a unified operational guideline for the land transaction permit system due to confusion among the permitting authorities.
According to these guidelines, residential rights encompass the right to acquire ownership of newly constructed apartments, regardless of the type of existing property or its destruction, under the 'Real Estate Transaction Reporting Act,' making it a target for land transaction permits.
For example, if one acquires residential rights for apartments while the registered buildings remain, such as in the case of multi-family and multi-apartment buildings or those not demolished after management disposal authorization, it falls under a contract that includes the right to acquire ownership of apartments and thus requires a land transaction permit.
Subscription rights arising from the initial purchase of dwellings are not subject to the land transaction approval under the 'Urban and Residential Environment Improvement Act' and 'Housing Act.' However, if reselling the subscription rights to a third party, permission from the permitting authority is required.
When applications for permits for residential rights or subscription rights are submitted, the permitting authority will check the applicant's land use plan, including the construction schedule such as commencement and completion dates based on management disposal plan approvals, confirmation of residence, and the obligation period for use. Permits can be granted if it is deemed that the land use plan meets the individual's residential purpose.
The obligation to actually reside for two years begins after the management disposal plan approval. In the case of redevelopment and reconstruction sites, the obligation period is assessed by combining the time of actual residence before the demolition of the previous property and the time spent living in the new dwellings after project completion.
If one resides for one year before the previous property is demolished after the management disposal approval, they can be granted permission under the condition of residing for the remaining obligation period of one year from the time of actual move-in.
If the property has already been demolished and construction is ongoing or scheduled after management disposal approval, permits can be granted under the condition of residing for two years from the actual move-in time after completion. For example, in the case of acquiring residential rights in Hannam District 3 after relocation and partial demolition, a two-year actual residence obligation applies after completion.
When acquiring dwellings in a land transaction permit area, the obligation for actual residence for two years starts from the time of acquisition. Considering that it takes about four months for approval from the time of application to permit, contract signing, final payment, and registration, the permitting authority can decide on the permission for the applicant's proposed move-in timing based on a four-month standard from the date of approval.
Those who already own dwellings can also apply for land transaction permits for the purpose of acquiring new dwellings. In this case, the applicant must provide specific and objective justifications for why they need to reside in the area or acquire additional dwellings or land for their own use, along with a plan for disposing of the existing dwelling.
The disposal of existing dwellings can be carried out through sales, rentals, or other methods. The permitting authority can determine the approval status based on the conventional contractual procedure, typically allowing for a six-month period for the disposal of existing dwellings.
The Ministry of Land and Seoul city plan to support the practical work of the permitting authorities based on the newly established operational guidelines and enhance follow-up measures such as usage status surveys for permitted transactions.