The government will implement a measure from the 29th to defer for up to two years the owner-occupancy requirement in land transaction permit zones (LTPZ) for dwellings with tenants.
According to the Ministry of Land, Infrastructure and Transport on the 22nd, a revision to the Enforcement Decree of the Real Estate Transaction Reporting Act to expand the LTPZ owner-occupancy deferral to all dwellings with tenants is set to pass a Vice Minister meeting that day, a Cabinet meeting on the 26th, and be promulgated and take effect on the 29th. This follows the measure released on the 12th titled "Expansion of owner-occupancy deferral in land transaction permit zones to all dwellings with tenants."
In areas designated as LTPZs, including all of Seoul and 12 areas in Gyeonggi, if the buyer of a dwelling with a tenant is a real demand, no-home buyer, the owner-occupancy requirement is deferred until the end of the lease. A no-home buyer is someone who has continuously had no home since the 12th of this month, the date of the policy release. Those who became no-home buyers by disposing of their existing home after the announcement are not recognized.
Sellers and buyers who trade a dwelling with a tenant and wish to apply the owner-occupancy deferral may apply for a land transaction permit to the competent authority starting on the 29th. The deadline to apply is Dec. 31. After receiving the permit, the buyer must acquire (register) the dwelling within four months. The owner-occupancy deferral period runs until the first contract end date of the lease that was in effect on the 12th, and move-in must occur by May 11, 2028, at the latest.
Minister Kim Yun-duk of the Ministry of Land, Infrastructure and Transport (MOLIT) said, "This measure is intended to address fairness issues, as the owner-occupancy deferral applied in February was limited to some multiple-home owners," adding, "We will implement the owner-occupancy deferral under the principle of prohibiting 'gap investment' (sales with jeonse attached)."
The Minister added, "As before, we are maintaining policy consistency by limiting buyers to no-home buyers and capping the owner-occupancy deferral period at up to two years from the announcement date."