Real Estate Law: Exclusive and Shared Portions

In the Act on Ownership and Management of Apartment Complexes (hereinafter referred to as the “Apartment Complex Act”), there is a lot of controversy over which parts of a building are exclusive and which parts are common.

The term "exclusive portion" refers to the portion of a building that is the object of sectional ownership (Article 2, Paragraph 3 of the Apartment Building Act). If a portion of a building that meets the requirements stipulated in Article 1 of the Apartment Building Act actually becomes the object of sectional ownership, that portion qualifies as an exclusive portion under the Apartment Building Act.

Common areas refer to building parts other than the exclusive area, building accessories that are not part of the exclusive area, and accessory buildings designated as common areas in the regulations or public deed pursuant to Article 3, Paragraphs 2 and 3 of the Apartment Complex Act (Apartment Complex Act, Article 2, Paragraph 4). Case law has ruled that the supports, exterior walls, and foundation structures necessary to maintain the safety or appearance of a building are structurally provided for the common use of all or part of the apartment complex owners and are not subject to apartment complex ownership, and therefore are considered common areas.

In the case of an annex building, guestsSince it can be the object of separate (division) ownership in terms of the official structure, in order to designate an annex as a common area, there must be a bylaw or notarized deed to that effect. These common areas are shared by the section owners according to their shares (Articles 10 and 12 of the Apartment Building Act). Since the shared share follows the disposal of the exclusive portion and cannot be disposed of separately from the exclusive portion, the acquisition or loss of real rights in the common area does not require separate registration (Article 13 of the Apartment Building Act). 

 

Therefore, the common area of an annex building does not need to be registered independently as a single building, and the title of the building registration book must indicate that it is a common area (Article 47 of the Real Estate Registration Act). Therefore, if the management building is an annex building under the Apartment Complex Act and is considered a common area by regulations or a notarized deed, it cannot be disposed of (auctioned) separately from the exclusive area. 

The rooftop is the upper part of the building body and can be considered a common area as it is necessary for the maintenance, preservation, and appearance of the entire building.

The Building Act defines a balcony as “a buffer space connecting the interior and exterior of a building, additionally installed in contact with the exterior wall of the building for purposes such as viewing or resting,” and stipulates that balconies installed in houses that meet the standards set by the Minister of Land, Infrastructure and Transport can be used for purposes such as living rooms, bedrooms, and storage, as needed (Article 2, Paragraph 14 of the Enforcement Decree of the Building Act). 

Balconies are generally considered common areas because they form part of the exterior walls of a building. However, their structures vary depending on various construction methods, making a blanket determination impossible. Therefore, determining whether a balcony qualifies as common areas should be determined comprehensively by considering the structure and usage of the building in question, as well as the building register and building registration records.

Attorney Yong-Hwa Lee of Ubiz Law Firm

He possesses extensive experience and deep expertise in the real estate field. His extensive experience has led him to handle a wide range of real estate-related matters, providing clients with reasonable and practical solutions.

UBIZ Law Firm, 6th floor, 418 Nonhyeon-ro, Gangnam-gu, Seoul 02-3452-9290

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