Constitutional Court Rules Obligation for Landlords to Record Registered Rental Status Is Constitutional
"Providing Sufficient Information to Protect Tenants... Legislative Purpose Is Legitimate"
The Constitutional Court has ruled that the current law, which requires landlords to record the fact of "registered rental" on the housing registry, does not violate the Constitution.
On September 25, the Constitutional Court unanimously dismissed a constitutional complaint against Article 5-2 of the Private Rental Housing Act.
The provision, enacted in June 2020, stipulates that landlords must make an additional registration on the ownership registry, indicating that the registered private rental housing is subject to mandatory rental periods and rent increase limits.
In response, housing landlords filed a constitutional complaint, arguing that "the obligation to make an additional registration is unnecessary excessive legislation, as tenants are already sufficiently protected."
However, the Constitutional Court stated, "The obligation to make an additional registration allows prospective tenants to know the rental conditions in advance," adding, "The legislative purpose is legitimate, as it aims to protect tenants by providing them with sufficient information from the contract stage."
The Constitutional Court also found that the old Article 65(2)(9) of the Private Rental Housing Act, which required all landlords to obtain a guarantee for rental deposits and imposed up to two years of imprisonment or a fine of up to 20 million won for violations, does not violate the Constitution.
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The Court explained, "The penalty provision aims to require landlords to obtain guarantees for rental deposits when leasing private rental housing, thereby providing strong protection for tenants against the risk of losing their deposits and clarifying legal relationships related to private rental housing, ultimately stabilizing the residential lives of the public." The Court acknowledged the legitimacy of this legislative purpose.
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