Supreme Court: "Inherited Houses Can Receive Land Expropriation Compensation Without Registration"

[Asia Economy Reporter Kim Hyung-min] The Supreme Court has ruled that if a house was inherited before the official announcement date of a project, the heir can receive land compensation for housing development due to land expropriation even if the ownership transfer registration was not completed.

The Supreme Court's 3rd Division (Presiding Justice Min Yoo-sook) overturned the lower court's ruling, which had dismissed the appeal by heir A against Korea Land and Housing Corporation (LH) in a case concerning the cancellation of refusal to supply relocation housing, and remanded the case to the Seoul High Court on the 30th.

The court stated, "The lower court erred by misunderstanding the legal principles regarding the retroactive effect of inheritance property division and failed to conduct the necessary examination."

Although the inheritance property division agreement was made after both A's father and mother had passed away, its effect was deemed retroactive to 1989, the year when the inheritance commenced upon the father's death.

Accordingly, A's mother was considered a relocation beneficiary eligible for housing compensation, and A, having inherited the house from his mother, was also judged to have acquired the status of a relocation beneficiary.

LH had informed households residing in the project section about the land compensation plan related to the Samsung-Mansong road construction project.

Compensation was targeted at those who had owned and continuously resided in the house for at least one year prior to the project approval announcement date of June 11, 2009.

A's father lived in a house located in the project area until his death in 1989, after which A's mother inherited the house and lived there until 2015.

The house's registered ownership was under A's father. It was only in July 2016, more than a year after the mother's death, that the ownership was changed to A's name following the inheritance property division agreement.

A applied to LH for relocation housing compensation, but LH rejected the application, stating that A did not reside in the compensated house for one year prior to the project approval announcement date.

A also argued that his mother was eligible for relocation housing supply and that the relocation rights were inherited by him upon her death, but LH denied the mother's relocation status, claiming there was no registered ownership of the house under the mother's name.

The first and second trials ruled in favor of LH.

They held that since the registered ownership of the house was under A's father for the one year immediately preceding the project announcement date, A's mother could not be considered the owner of the house.

This content was produced with the assistance of AI translation services.