Gwangju Kyungsillyeon Urges National Assembly for Prompt Amendment of Real Estate Transaction Reporting Act

Proposed Amendment to the Act on Real Estate Transaction Reporting through Congressman Yongbin Lee

Changing the Timing of Actual Transaction Price Reporting and Strengthening Punishment for False Reporting to Establish Order in Real Estate Transact

[Asia Economy Honam Reporting Headquarters Reporter Kim Chunsu] The Gwangju Economic Justice Practice Citizens' Coalition (hereinafter Gwangju Gyeongsilryeon) announced on the 12th that it has enabled Representative Lee Yong-bin to jointly propose a partial amendment bill to the Act on Reporting Real Estate Transactions.

In November 2019, Gwangju Gyeongsilryeon issued a press release as a measure to eradicate real estate speculation, demanding the legalization of "making the standard for actual real estate transaction prices the sale price recorded in the registry at the time of registration."

Through this, they have persistently urged the amendment of the Act on Reporting Real Estate Transactions to establish a fair real estate transaction order, especially for the fair formation of apartment market prices.

The current Act on Reporting Real Estate Transactions allows for the encouragement of actual transaction prices through fabricated sales contracts even when no real estate transaction has taken place, without going through the actual transaction price reporting or the actual transaction price disclosure system, making frequent cases of price surges in certain areas possible.

In particular, it was discovered through a survey on apartment prices located in Bongseon-dong, Nam-gu, Gwangju in 2018 that false information about apartment prices was provided, leading to price formation. At that time, the apartment prices in the area had already experienced a surge of more than double within less than 10 months.

As a fundamental measure to prevent such situations, Gwangju Gyeongsilryeon has worked to establish a fair and transparent real estate transaction order by requiring the reporting of actual transaction prices of real estate sales contracts within 30 days from the date of completion of ownership transfer registration, attaching the full certificate of registered matters, and preparing penal provisions against false transaction reporting acts intended to unjustly acquire property or financial gains or to enable third parties to acquire them. This time, they prepared the amendment bill together with Representative Lee Yong-bin.

The current law requires reporting to the reporting authority within 30 days from the date of contract conclusion when entering into real estate sales contracts, and the Ministry of Land, Infrastructure and Transport discloses the concluded sales contracts to the public through the actual transaction disclosure system based on the reported information.

The actual transaction disclosure system is operated for the purpose of estimating real estate prices, but in reality, there are many cases where it is abused to report contracts where no actual transaction has taken place to raise real estate asking prices.

Accordingly, the amendment bill stipulates that the reporting of real estate sales contracts should be done within 30 days from the date of completion of ownership transfer registration, not after contract conclusion, and that false transaction reporting acts intended to unjustly acquire property or financial gains or to enable third parties to acquire such benefits shall be punishable by imprisonment of up to 5 years or a fine of up to 50 million won.

If the amendment bill is enacted, actual transaction reporting will be made through the change of the reporting timing of real estate actual transaction prices, and by severely punishing some speculative forces that disrupt market order, a fair and transparent real estate transaction order can be established.

Sim Jae-hoon, Chairman of the Real Estate Construction Reform Committee of Gwangju Gyeongsilryeon (lawyer), who proposed the amendment bill, said, "If the actual transaction price of real estate is reported not as the amount stated in the sales contract but as the sale price recorded in the registry at the time of payment and registration, it can prevent the manipulation by speculative forces, some real estate agents, and some developers and constructors who attempt to inflate apartment sales prices or pre-sale prices." He added, "Since the amendment bill has been proposed, we strongly urge the National Assembly to promptly amend Article 3 of the Act on Reporting Real Estate Transactions to change the reporting timing of actual transaction prices from the time of contract conclusion to the sale price recorded in the registry."

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