Real estate knowledge: Precautions when signing a residential real estate lease based on the 2024 law

As partial revisions to the Licensed Real Estate Act go into effect on October 19, 2023, real estate agents in private practice must explain the following when brokering a lease.

1) Request for provision of information to the organization that grants the confirmed date is possible.
2) Application for inspection of national and local taxes not paid by the landlord is possible.

Previously, it was possible to view the fixed date grant date, deposit, national tax, and local tax payment certificate only with the consent of the landlord, but now it is possible to view it without consent. In case of violation, a fine of up to 5 million won will be imposed. However, in cases where the deposit is less than 10 million won or before a lease contract, the consent of the landlord is required. 

If you look closely, the obligation to explain <Article 25-3> of the Act when brokering a residential real estate lease will come into effect six months after the promulgation of the “Partial Amendment to the Licensed Real Estate Agent Act” on April 18, 2023 (October 19). So you have to be careful. In accordance with Article 3-6, Paragraph 4 of the Housing Lease Protection Act, you can request the provision of information (confirmed date, rent, deposit, etc.) to the fixed-term rental agency, and you can request to view the landlord's unpaid national taxes and unpaid local taxes in accordance with the National Tax Collection Act and the Local Tax Collection Act. . It should be explained that a licensed real estate agent in private practice can request information such as the confirmed date (rent, deposit) and check the landlord's unpaid taxes when signing a housing lease.
Therefore, it must be explained that a licensed real estate agent in private practice can request information from the relevant community center regarding the confirmed date and confirmation of the household moved into, and that for national and local taxes, the information can be requested from the tax office and city/county/district office. In case of violation, a fine of up to 5 million won will be imposed. In the case of commercial building leases, there is no obligation for licensed real estate agents to provide explanations, but informing them that they can apply for inspection with the landlord's consent in accordance with the National Tax Collection Act and Local Tax Collection Act can provide a better brokerage service.

According to the Housing Lease Protection Act <Article 3-6>, granting of fixed date and provision of rental information, etc., a person with an interest in the lease of a house may request the granting agency to provide information such as the date of granting the fixed date, rent, and deposit. Additionally, a person wishing to enter into a lease contract may request the provision of information with the consent of the lessor.

The items entered in the confirmed date book of the Enforcement Decree of the same Act are the confirmed date number, grant date, personal information of the lessor and lessee, location of the house, object of lease, lease period, rent and deposit, the applicant's name and the first digit of the resident registration number, and the request for provision of rental information (see attached sheet). Form No. 3) must be submitted. Any person with an interest in the lease may request the provision of housing rental information without the consent of the landlord, and anyone wishing to enter into a lease contract must obtain the consent of the landlord. The fixed date granting agency cannot refuse without justifiable reasons.
National Tax Collection Act <Article 109, Paragraph 1>, inspection of unpaid national taxes, etc., Local Tax Collection Act, <Article 6, Paragraph 1>, inspection of unpaid local taxes, etc. is subject to persons who intend to rent and use a residential or commercial building (classified before and after signing a lease contract). . Unpaid national taxes and unpaid local taxes may be requested for inspection with the consent of the lessor before entering into a lease agreement or until the date the lease period begins after entering into a lease agreement.

Applications for inspection of unpaid national taxes are submitted to the head of the tax office, and applications for unpaid local taxes are submitted to the head of the local government. However, if the deposit in the rental contract exceeds 10 million won, the lessee may request inspection of the unpaid local taxes without the consent of the landlord until the date the lease period begins.

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