Three months after passing the third lease law, landlords who are concerned about disabling the right to request renewal

Check-in 2020.11.05 15:00

Three months have passed, including the right to request contract renewal and a 5% upper limit for jeonse rental. The government hopes that the law will be resolved over time, but the market situation does not.

Some landlords are actively looking for ways to circumvent Law 3 of leasing. Market turmoil is expected to continue for the time being, such as finding a way for the tenant to receive financial compensation as a tenant. Real estate experts emphasize that it is difficult to solve the problem only by artificially suppressing the price formed in the market.

According to the construction and real estate industry on the 5th, some homeowners are contemplating how to deny the right to request contract renewal. On the other hand, some tenants are struggling to receive more, saying Hong Nam-ki, the deputy prime minister for economics, also paid condolence money, including moving fees, to the tenant. As it became difficult to find a leased property and the price of the leased property skyrocketed in a short period of time, the position of the lessor and the tenant diverged dramatically and the conflict became more acute.

Some believe that the right to request renovation can be neutralized by donating a house to a close relative, after stating their intention to live in it, and using the donation cancellation system. Six months before the tenant expires, after completing the donation report to relatives, the recipient (the person who received the donation) informs the tenant of their actual position of residence. When the tenant finds a new home, the recipient requests a ‘cancellation of the donation’. According to the Gift and Inheritance Tax Law, the standard deadline for filing gift tax taxation is 3 months from the last day of the month in which the gift occurred, and during this period, a gift can be canceled.

Of course, in this case, the premise that the tenant who is anxious about the skyrocketing price of jeonse is to find a jeonse house as soon as possible. Since the notice of intention to live is 6 months, and the gift must be canceled within 3 months, if the tenant does not find a place to move just before expiration, the property can be returned to the original owner.

Eun-mi Choi, a real estate attorney at the Law Office, said: “If you actually give or receive a gift without the intention of receiving it, it is construed as a false indication and may be retroactively invalidated in accordance with Civil Law It seems that the question will be if there was not or if he changed his mind after the gift. “

Some people want to use the concept of seonwolse as an alternative. For example, a contract is signed for a house with a jeonse price of about 600 million won with a deposit of 500 million won and a monthly rent of 50 million won. If the tenant does not use the renewal claim, the landlord will return the deposit of 50 million won, which was set as the first rental, after two years. If you use the renewal application right, you only pay 500 million won in deposit and 50 million won is not returned on the first monthly rental.

Lawyer Choi said: “Under the Lease Protection Law, the right to request contract renewal is a kind of mandatory regulation, on the contrary, the agreement that is unfavorable to the tenant becomes invalid. It seems that the question will be whether or not to judge the previous agreement as an unfavorable agreement for the tenant ”.

Landlord concerns are also evident in the real estate community. According to the real estate community, paid lectures on how to legally reject the right to apply for renewal by a title attorney are being announced, and proof of content forms sent to tenants are actively shared.

Real estate experts analyzed that the introduction of the third method of leasing caused a significant backlash by artificially suppressing the calculation of monthly and jeon rental prices instead of relying on market principles. Currently, the owners are considering renewing the contract because there is a high possibility that a break in the sales contract will occur if the tenant uses the right to request the renewal of the contract. It is easy to sell to a prospective buyer who wants to live only if it is left vacant or if the owner resides to receive more market prices.

Considering that the price of jeonse continues to rise, the fact that the jeonse does not rise and the damage to the property is great is the reason to consider the inability of the right to request the renewal of the contract. For example, the 59-square-meter rented area for a new apartment in Godeok-dong, Seoul, was decided at 400 million won when he moved in December 2019, but a contract for between 640 million won was signed on the 26th of this month. won and 720 million won. The current price is 900 million won. Less than a year has passed, but it has doubled.

An official from a nearby real estate agency said: “If there is no way to finance money due to a blocked loan or if there is a tax problem, we want the price to somehow increase by the market price,” he said. “The total price has suddenly risen excessively.”

The same goes for tenants. As the price of jeonse suddenly rises by several billion won, it is difficult to consider the situation of the owner. Conflicts often escalate because they have to find stable residence even using the right to apply for contract renewal. Instead of not using the right to apply for contract renewal, you can apply for alimony, or even if you receive alimony, you should receive as much as possible to add to the high-rise jeonse deposit loan.

Real estate experts emphasize that the situation cannot be corrected by solving everything with policies or regulations. Shim Gyo-eon, a professor in the Department of Real Estate at Konkuk University, said: “If you make a law without taking into account the short-term effects and side effects of politics, this situation will happen.”

According to Professor Shim, according to KB Kookmin Bank’s weekly apartment jeonse price index, at the end of July, when the leasing law was passed, the rate of increase of jeonse prices in Seoul over the previous year was 3.9%, but in October, less than three months after the approval of the legislation. As of the 12th it rose 4.1%. Rent in Seoul has risen more in the coming months than the year before the leasing law was passed.