South Jeolla-Gwangju Integrated Special City has released guidance on land transaction permit procedures and precautions residents should know, following the designation of a land transaction permit zone around the Gwangju military airport, which took effect Tuesday.
Within a land transaction permit zone, anyone seeking to trade land exceeding a certain size threshold must obtain approval from the city mayor, district mayor or county governor before signing a contract. Contracts concluded without such approval carry no legal effect under Article 11, Paragraph 6 of the Act on Real Estate Transaction Reporting, so buyers and sellers must confirm whether a transaction requires a permit before proceeding.
The permit requirement applies to land exceeding the standard area for each zoning category. For apartment complexes, the threshold is based on the land-share area, not the exclusive use area. Initial pre-sales of apartments are exempt, but transferring a pre-sale right — including move-in rights — to a third party does require a permit.
As a rule, both the seller and the buyer must apply for the permit jointly. If an agent applies on their behalf, a power of attorney is required.
Required documents include a land transaction permit application, a land use plan (an agricultural management plan for farmland, or a forest management plan for woodland), a land acquisition funding plan, and a prior consent form for shared use of administrative information.
Applicants should submit the completed documents to the land management (real estate) division of the city, district or county office with jurisdiction over the land in question.
A decision on the permit will be issued within 15 days of the application date. If approved, the parties may proceed with the contract.
Once a transaction involving permit-required land is concluded, the parties must file a real estate transaction report within 30 days of the contract date. The report must include the land transaction permit number and the date of approval in the contract details section.
Permit holders are required to use the land for the approved purpose for a set period after acquisition. Failure to comply may result in a compulsory performance fine under relevant laws.
South Jeolla-Gwangju Integrated Special City plans to continue providing guidance on permit eligibility and application procedures to minimize inconvenience for residents. It will also work with the Korea Association of Realtors on on-site outreach and the production and distribution of informational materials to improve public understanding of the land transaction permit system.
Seol Hyang-ja, head of the land information division, said being designated a land transaction permit zone does not mean land transactions are prohibited. "End-users can trade normally after obtaining a permit," she said. "The land transaction permit system is designed to curb speculative transactions and protect genuine buyers, so please make sure to confirm whether a permit is required before signing a contract."
sij@heraldcorp.com
