Reserves for Long-term Repairs
Definition of reserves for long-term repairs
- The term "reserves for long-term repairs" means the reserves, necessary for the replacement, maintenance and repair of important facilities of multi-family housing, accumulated and collected from the house owners by the management entity of multi-family housing with 300 or more households, multi-family housing where elevators are installed, or multi-family housing with the central heating system, in accordance with the long-term repair plan (Articles 29 (1) and 30 (1) of the Multi-Family Housing Management Act).
Claim for Refund of Reserves for Long-term Repairs
Entity to bear the reserves for long-term repairs
- Although reserves for long-term repairs are originally supposed to be borne by the owner of a multi-family housing unit such as an apartment, etc., the lessee generally pays the reserves with management expenses according to the management rules of multi-family housing (Article 30 (1) of the Multi-Family Housing Management Act).
- The lessee who has paid money for reserves for long-term repairs may claim and receive the money from the owner of the multi-family housing unit when the contract of lease terminates (see Article 31(8) of the Enforcement Decree of the Multi-Family Housing Management Act).