Legislative Notice of Enforcement Decree Expanding Scope of Small Lease Rights
Amendment of a standard housing lease contract
▼
The government is promoting a review of the Housing Lease Protection Act to prevent ‘jeonse tin’ and jeonse fraud. The main point of the amendment is to force the landlord to agree to provide information about renting as a seniority deposit to the tenant, and to establish anew the right to confirm information about arrears.
The Ministry of Justice and the Ministry of Land, Infrastructure and Transport made a legislative notice on the 21st of the amendment to the Welfare Protection Act and some amendments to the Enforcement Decree. According to the current Lease Protection Act, a person who wants to become a lessee can request lease information, such as a seniority deposit, from a given date institution with the consent of the lessor.
However, it was not clear whether a person intending to become a tenant could ask permission from the landlord, and even if they did, there was a restriction that information could not be obtained if the landlord refused to give permission. The amendment makes it clear that a person intending to become a lessee can request permission from the lessor to provide information, such as a higher deposit, and it obliges the lessor to agree.
If the lessee has taxes in arrears before signing the contract, the State’s tax claims will take priority over the lessee’s claims for the return of the deposit. This means that if there is a tax delinquency by the landlord that the landlord did not know about, the tenant may not receive the deposit as it is. The amendment gives tenants new rights to demand tax payment certificates from landlords. However, if there is a justifiable reason, the landlord can refuse to present the tax payment certificate.
An amendment to the Enforcement Decree of the Protection of Leases Act, which widens the scope of small tenants, has also been announced. The deposit limit for small tenants was raised by 15 million won, and the amount of the highest priority payment was also increased by 5 million won. In the case of Seoul, the range of tenants who can receive a preferential rebate was previously ‘150 million won or less’, but it was raised to ‘165 million won or less’, and the rebate amount was expanded pay priority also of 50 million won. or less to 55 million won or less.
The government also changed the standard housing lease agreement. Under the current law, the tenant’s objection occurs the day after completion of the process of presenting the house and registration of residents (move-in report). However, in some cases, the landlord borrowed money from other people and set up a mortgage right after the contract was signed until notice was given to move in. In this case, the lessee may not be able to get the deposit back.
A clause was added to the new housing lease standard contract that the landlord cannot establish security rights such as mortgages until the day after the lessee decides to give notice of moving in. In case the lessor breaches this, it is stated that the lessee has the right to cancel, rescind and claim compensation.
Correspondent Choi Han-jong onebell@hankyung.com
