When purchasing multi-family or apartment buildings targeted for redevelopment, there are several important factors to consider. A clear understanding of terms such as residential rights, allocation rights, the rights assessment standard date, and restrictions on member status transfer is essential.
First, let's look at residential rights and allocation rights. Residential rights refer to the entitlement of existing landowners in a redevelopment area to receive new housing during the project. This right arises when a member provides an existing house or land and participates in the redevelopment project, differing from allocation rights obtained through general sales.
In contrast, allocation rights are the rights to a new apartment acquired through a sales contract by someone who has won a general sale. While residential rights require consideration of the assessed value of the original asset and additional contributions, allocation rights involve the payment of sales prices and premiums as per the sales contract. Tax implications can also differ. Both residential and allocation rights can affect the calculation of the number of houses owned, and for residential rights, the application of acquisition tax may vary depending on whether the existing house is demolished. Therefore, it is crucial to evaluate tax burdens based on the type of property held and the transaction form before purchasing.
It is also important to understand the 'rights assessment standard date.' In redevelopment areas, issues can arise when a single plot is divided into multiple plots or when single-family homes are converted into multi-family units, leading to an increase in the number of owners. The rights assessment standard date serves as a mechanism to prevent such 'fractional ownership.' If a plot is divided or an existing building is demolished and a new multi-family unit is constructed after the standard date, the right to receive allocations may be restricted.
However, purchasing a house after the standard date does not automatically result in the loss of residential rights. The situation may differ depending on whether the house existed before the standard date or was newly divided or constructed afterward. Some projects, like urban public housing complex projects, may have separate criteria applied.
Understanding the 'restrictions on member status transfer' is also essential. In speculative overheating zones, transferring the status of existing members to others may be restricted once the redevelopment project reaches a certain stage. In reconstruction, restrictions may apply to land or buildings acquired after the establishment of the association, while in redevelopment, restrictions may apply after the approval of the management disposal plan. There are some exceptions for long-term holders and residents of a single home.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.