Clearly State Whether Tenant's Right to Request Lease Renewal Is Exercised When Selling a House

Ministry of Land, Infrastructure and Transport's Plan to Amend Enforcement Rules of the Licensed Real Estate Agent Act

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[Asia Economy Reporter Moon Jiwon] A plan is being promoted to accurately record whether the existing tenant has exercised the right to request contract renewal in the 'Real Estate Brokerage Object Confirmation and Explanation Statement' when selling a house with a Jeonse deposit.

The purpose is to reduce disputes arising from tenants initially stating they will not exercise the contract renewal request but later changing their minds.

On the 15th, the Ministry of Land, Infrastructure and Transport announced that it plans to revise the enforcement rules of the 'Certified Real Estate Agent Act' with this content and publicly notify the legislation around next week. The revised content is expected to be implemented starting December.

The Ministry plans to amend the Real Estate Brokerage Object Confirmation and Explanation Statement to clearly indicate whether the existing tenant has exercised the contract renewal right, has not exercised it, or has waived the right when signing a sales contract for a house with a Jeonse deposit.

Previously, the government issued an authoritative interpretation stating that if the existing tenant declares they will not exercise the contract renewal right during the sale of a Jeonse house, they cannot later revoke that statement.

This is to protect buyers who purchased the house for actual residence believing the tenant would leave, and landlords who proceeded with the contract trusting the tenant's statement.

However, disputes have surged as cases increase where tenants change their position to exercise the contract renewal right after the sales contract is signed or claim, "At that time, I did not clearly waive the right to request contract renewal."

According to the government's authoritative interpretation, if the tenant states they will not exercise the right, they must vacate, but there is no clear standard on the extent of the tenant's expression of intent, causing significant potential for disputes.

Accurately recording whether the tenant has exercised the contract renewal right in the confirmation and explanation statement is expected to greatly reduce such conflicts. The Ministry of Land, Infrastructure and Transport plans to publicly notify the amendment to the enforcement rules of the Certified Real Estate Agent Act as early as next week.

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