"If No Compensation Is Given, You Can't Evict"… The Reversed 'Gap-Ul' in the Lease 3 Laws

<Confusion Caused by the Right to Request Lease Renewal>

Message Saying 'Request Renewal' Sent, Then Tenant Goes Silent
Landlords Helpless Against Tenants' Take-it-or-leave-it Attitude

Ministry of Land, Infrastructure and Transport: "Based on Whether Agreement with Tenant is Reached"
Late Efforts to Resolve, but Ambiguous Interpretations Remain in Each Case

[Asia Economy Reporter Lee Chun-hee] Mr. Kim, who had rented out his house in Nowon-gu, Seoul, and was planning to sell it and buy another house, found himself stuck due to the tenant. The tenant sent only a message saying "I will exercise the right to request contract renewal" and then cut off contact. Even the certified mail was not delivered due to the recipient's absence. Mr. Kim also considered living in the rented house for a certain period before selling it, but the tenant resisted, accusing him of "changing his words."

Mr. Kim expressed his frustration, saying, "I lived there for eight years, but due to circumstances, I rented it out, and now I can neither sell the house nor move in. Only citizens are suffering from the government's unreasonable legislation."

Disputes surrounding the right to request contract renewal and the rent ceiling system continue unabated. According to the industry on the 10th, after the enforcement of the Housing Lease Protection Act, which includes the right to request contract renewal and the rent ceiling system, the power dynamics in lease contracts have reversed, leading to ongoing conflicts between landlords and tenants. The government's approach of 'implement first, respond later' has resulted in ambiguous legal interpretations.

The most problematic issue since the law's enforcement is disputes arising from sudden changes of mind by tenants. This occurs when tenants who had agreed to vacate the house for the landlord to move in or to sell to a third party for actual residence change their minds and exercise the right to request contract renewal. The Ministry of Land, Infrastructure and Transport has attempted to manage the situation by emphasizing agreements with tenants, but the variety of interpretations in individual cases has made it difficult to calm the confusion.

In fact, in the market, some tenants are even demanding 'consolation money' by leveraging the right to request contract renewal. Mr. Lee, in his 50s, plans to sell his house, whose lease expires this November. He had agreed with the tenant to vacate at the end of the lease and even allowed the tenant to withdraw part of the deposit early to find a new place.

Among the explanations of the Housing Lease Protection Act distributed by the government on the 28th of last month, it was interpreted that an agreement not to request contract renewal in advance is invalid. (Provided by the Ministry of Land, Infrastructure and Transport)

However, when interpretations arose that the possibility of requesting renewal during the sales contract period was ambiguous, the tenant's attitude suddenly changed. The tenant claimed that unless the brokerage fee for the new house, moving expenses, and even the interest on the lease loan were paid, they would not vacate the house. Mr. Lee lamented, "At the very least, there should be measures to prevent tenants from reversing their words. If the law is made, please take responsibility so that unfair situations do not occur."

Tenants are equally distressed. Newlyweds Mr. Choi had planned to live two more years in their leased house but now face eviction. The landlord sold the house to a buyer intending to live there and asked them to leave. When they inquired at the dispute mediation committee, the official only gave a vague answer, saying, "It might be difficult if the new owner buys the house for actual residence."

As problems continue to arise, the Ministry of Land, Infrastructure and Transport has belatedly tried to organize the situation but has yet to provide solutions to the various ongoing disputes. The ministry issued guidelines stating that the possibility of contract renewal should be judged based on whether there was an 'agreement' between the landlord and tenant during the sales contract process.

A ministry official explained, "The principle that the renewal is judged based on who the landlord is at the time of the first exercise of the right to request contract renewal remains. However, if the tenant suddenly changes their mind after agreeing with the tenant that the house will be sold to a buyer for actual residence, it can be interpreted as a valid refusal to renew." Since the contract was proceeding based on trust with the tenant, it is difficult to protect actions that betray the tenant's trust.

The problem is that proving whether there was an agreement between the landlord and tenant is not easy. This is because most agreements are made verbally as a customary practice.

Experts point out that since the government generally places more weight on tenant protection in legal interpretations, landlords are likely to suffer if they cannot concretely prove the tenant's agreement. The head of a real estate agency in Mapo-gu said, "Unless all conversations between landlords and tenants are recorded or left in text messages, disputes are inevitable."

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