Reporting a real estate transaction
What is a “Reporting system of real estate transaction?”
- A “reporting system of real estate transaction”is designed to make real estate transactions more transparent by enforcing the obligation to report the actual transaction price and abolishing the convention of writing another contract document with a lower price after closing the contract (Article 3 (1) of the Act On Report On Real Estate Transactions, Etc.)
Obligator and method of report
- The seller and buyer shall jointly submit the report of a real estate transaction to the competent head of the local government office (mayor or head of either Gun or Gu) in which the real estate is located, or shall use the Real Estate Transaction Management System run by the Ministry of Land, Infrastructure and Transport (main clause of Article 3(1) of the Act on Report on Real Estate Transactions, Etc. and Article 2(1) of the Enforcement Rules of the Act on Report on Real Estate Transactions, Etc.).
· Notwithstanding the provision above, if the transaction party refuses to report, the other may report alone (Article 3(2) of the Act on Report on Real Estate Transactions, Etc.).
- Notwithstanding the provision above, if a practicing licensed real estate agent under Article 2(4) of the Licensed Real Estate Agents Act has prepared and issued the contract, the said practicing licensed real estate agent shall report the real estate transaction. If the brokerage has been jointly implemented, the corresponding practicing licensed real estate agent shall make a joint report with the party concerned (Article 3(3) of the Act on Report on Real Estate Transactions, Etc.)
· Notwithstanding the provision above, if the practicing licensed real estate agent refuses to report, the other may report alone (Article 3(4) of the Act on Report on Real Estate Transactions, Etc.)
Period of reporting
- The report shall be completed within 30 days from the day of which the corresponding transaction contract is concluded (Article 3 (1) of the Act On Report On Real Estate Transactions, Etc.).
Prohibited acts
- No one shall engage in any of the following acts in relation to the reporting of real estate transactions (Article 4 of the Act On Report On Real Estate Transactions, Etc.).
· Requesting the practicing licensed real estate agent to neglect or falsify a report of a real estate transaction
· After the signing of a real estate sales contract, a person who has no duty to report submits a false report of a real estate transaction
· Aiding or abetting the act of submitting a false report of real estate transaction
· Submitting a false report of real estate transaction despite not having signed a real estate sales contract
· Submitting a false report of a real estate transaction cancelation although the contract has not been canceled after the real estate transaction is reported
Sanctions for violation
- Any person who fails to report a real estate transaction (including any party who refuses to make a joint report), makes a false report, or commits a prohibited act shall be fined (Article 28(2) and (3) of the Act on Report on Real Estate Transactions, Etc.).
Reporting a housing lease contract
What is a “housing lease reporting system?”
- The term “housing lease contract reporting system” means a system that allows other parties to a contract to report the details of a housing lease contract within the reporting period, as it is difficult for a tenant to negotiate the terms of lease in an equal location because of the lack of accurate lease market price information, and as problems arise, such as the lack of standards for quick solutions in the event of a dispute (See Article 6-2 (1) of the Act On Report On Real Estate Transactions, etc.).
Person liable for reporting and how to report
- The lessor and lessee shall submit the report of the lease contract to the competent head of the local government office (mayor or head of either Gun or Gu) in which the real estate is located, or shall use the Real Estate Transaction Management System run by the Ministry of Land, Infrastructure and Transport (main clause of Article 6-2(1) of the Act on Report on Real Estate Transactions, Etc. and Article 6-2(2) of the Enforcement Rules on the Act on Report on Real Estate Transactions, Etc.).
· Notwithstanding the provision above, if the lessor or lessee refuses to report, the other may report alone (Article 6-2(3) of the Act on Report on Real Estate Transactions, Etc.).
Targetfor reporting
- Report on housing lease contract shall be made for a house (referring to the house under Article 2 of the Housing Lease Protection Act, and including the right to acquire a house) in which the deposit for a house exceeds 60 million won or the monthly rent exceeds 300,000 won (excluding a contract that only extends the period of lease without any increase or decrease in security deposit or rent) (main clause of Article 6-2(1) of the Act on Report on Real Estate Transactions, Etc. and Article 4-3(1) of the Enforcement Decree of the Act on Report on Real Estate Transactions, Etc.).
- A report on a housing lease contract shall apply to a Special Self-Governing City, a Special Self-Governing Province, a Si/Gun (limited to a Gun within the jurisdiction of Metropolitan City and Gyeonggi-do) and a Gu (referring to an autonomous Gu) (Article 6-2 (2) of the Act on Report on Real Estate Transactions, Etc. and Article 4-3 (2) of the Enforcement Decree of the Act On Report On Real Estate Transactions, Etc.).
Period of report
- Report on housing lease contract shall be made within 30 days from the date of the lease contract (Article 6-2(1) of the Act on Report on Real Estate Transactions, Etc.).
Prohibited acts
- No person shall engage in any of the following acts regarding reporting the housing lease contract (Articles 6-4 and 4 of the Act on Report on Real Estate Transactions, Etc.)
· Filing a false report when not obligated to file such report under after entering into a housing lease contract;
· Encouraging or aiding a person to file a false report;
· Filing a false report although no housing lease contract has been entered into;
· Falsely reporting a Housing Rental Agreement that the Parties did not sign
· Filing a false report although the change or cancellation of a contract has not occurred after a report on the contract has been filed
Sanctions for violation
- Anyone who fails to report a housing lease contract (including those who refuse to file a joint report) or falsely reports it will be fined (Article 28 (5) 3 of the Act on Report on Real Estate Transactions, Etc.).