Real-Residence Grace Period in Land Transaction Permit Zones to Take Effect on the 29th

\r\n[Financial News] The government will expand the scope of homes eligible for a grace period on the actual-residence requirement in land transaction permit zones to all homes with tenants. The move is intended to ease fairness concerns by broadening a relief measure that had been limited to some multi-homeowners in February.
According to the Ministry of Land, Infrastructure and Transport on the 22nd, the government plans to promulgate and implement the revised enforcement decree of the Act on Report on Real Estate Transactions, Etc. from the 29th, after reviewing it at a Vice Ministers' Meeting on the day and a State Council of South Korea meeting on the 26th. The measure follows the announcement on the 12th to expand the grace period for actual residence in land transaction permit zones to all homes with tenants.
Once the revision takes effect, buyers of homes occupied by tenants will be able to postpone actual residence for a certain period if they meet specific requirements. The government said, however, that the principle of blocking gap investment will remain in place. As a result, buyers must be households that have remained without a home since May 12.
The deadline to apply for a land transaction permit is December 31 this year. Sellers must be owners of homes that were either rented out or subject to a jeonse right as of May 12. After receiving approval, buyers must complete the ownership transfer registration within four months. The grace period for actual residence will be recognized until the first end date of the existing lease contract, and residents must move in no later than May 11, 2028.
The government expects the change to ease some of the inconvenience in transactions involving homes with tenants, as inquiries about deals in land transaction permit zones continue, especially in the Gangnam area of Seoul. At the same time, it plans to keep the actual-residence requirement itself in place to limit the spread of speculative transactions.
Kim Yoon-deok, Minister of Land, Infrastructure and Transport, said, "The actual-residence grace measure implemented in February applied only to some multi-homeowners, raising fairness concerns." He added, "This time as well, we considered policy consistency by limiting buyers to those without a home and keeping the grace period for actual residence at a maximum of two years."
en1302@fnnews.com Jang In-seo Reporter