Aggregate buildings

Aggregate buildings (집합건물/集合建物) including apartments and multi-purpose office buildings are mushrooming here and there in Korea.

That's why an increasing number of disputes and troubles take place in such aggregate buildings. Such legal disputes were often out of regulation of the Civil Act. Accordingly, the Act on the Ownership and Management of Aggregate Buildings (집합건물의 소유 및 관리에 관한 법률) was enacted in April 1985, and amended from time to time. The latest amendment to the Act, which was promulgated on April 12, 2011 and came into force on October 13, 2011, is as follows:
 * Legislative Purports of the Amendment
 * 부동산등기부 전산화사업의 완료로 등기사무처리가 전산정보처리조직에 따라 수행되고 있고 전자신청이 전국적으로 시행되고 있으므로 종이등기부를 전제로 한 규정을 정비하고, 법률에 직접 규정하기에 적합하지 아니한 사항을 대법원규칙으로 위임하거나 삭제하여 탄력적인 등기절차를 운용하며, 악용의 소지가 있는 예고등기제도를 폐지하여 부동산에 관한 국민의 권리보전을 도모하고 거래의 안전성을 높이려는 것임.


 * Main points of the Amendment
 * 가. 등기의 효력발생시기를 명확하게 하기 위하여 등기관이 등기를 마치면 그 등기의 효력은 접수한 때부터 효력을 발생하는 것으로 함(안 제6조제2항).
 * 나. 등기부 전산화 작업이 완료되어 모든 등기사무가 전산정보처리조직으로 처리되므로 이를 등기사무처리방식의 원칙으로 규정하고, 종이등기부를 전제로 한 규정 또는 용어(등기용지, 기재, 날인 등)는 전산등기부와 부합하지 아니하므로 모두 삭제함(안 제11조제2항).
 * 다. 대법원규칙이나 예규에서 정하여도 충분한 사항을 법률에서 규정하고 있어 전산화 등 외부변화나 국민의 요구에 따른 신속하고 탄력적인 등기절차를 운용하는 데에 어려움이 있으므로 신청서 기재사항과 신청서 첨부서면으로 구성되어 있는 현행법 체계를 등기사항 위주로 개편하고, 구체적인 등기신청절차나 등기실행방법은 대법원규칙으로 위임함(안 제24조제2항, 제34조, 제40조, 제48조, 제69조부터 제72조까지 및 제74조부터 제76조까지).
 * 라. 존속기간의 만료 등으로 전세권이 소멸한 경우 해당 전세권은 전세금반환채권을 담보하는 범위에서 유효한 것이고 이때에는 전세금반환채권의 일부양도가 가능하므로 전세금반환채권의 일부 양도에 따라 전세권일부이전등기를 할 때에는 양도액을 등기할 수 있도록 함(안 제73조).
 * 마. 민법 제368조제2항 후단에 따르면 공동저당이 설정되어 있는 경우에 선순위 저당권자가 그 중 일부의 부동산에 관하여만 저당권을 실행하여 채권 전부를 변제받은 경우 후순위 저당권자는 공동담보로 제공되어 있는 다른 부동산에 관하여 선순위 저당권자를 대위하여 저당권을 행사할 수 있으므로 이를 등기할 수 있도록 공동저당 대위등기 규정을 신설함(안 제80조).
 * 바. 등기관이 가등기에 의한 본등기를 한 경우 가등기 이후에 된 등기로서 가등기상 권리를 침해하는 등기의 말소절차를 명확히 하기 위하여 등기관이 가등기에 의한 본등기를 한 경우 가등기상 권리를 침해하는 등기를 지체 없이 직권으로 말소하도록 함(안 제92조).
 * 사. 가처분채권자가 그 가처분채권에 따른 등기를 할 경우 해당 가처분등기는 등기관이 직권으로 말소하고 가처분에 저촉되는 등기는 가처분채권자의 신청에 의하여 말소할 수 있도록 함(안 제94조 및 제95조).
 * 아. 예고등기는 본래 등기의 공신력이 인정되지 아니하는 법제에서 거래의 안전을 보호하기 위하여 인정되는 제도이나, 예고등기로 인하여 등기명의인이 거래상 받는 불이익이 크고 집행방해의 목적으로 소를 제기하여 예고등기가 행하여지는 사례가 있는 등 그 폐해가 크므로 이를 폐지함(현행 제4조, 제39조, 제170조 및 제170조의2 삭제).
 * 자. 구분건물의 표시에 관한 등기관의 실질적 심사권은 「집합건물의 소유 및 관리에 관한 법률」 시행 초기 구분건물 판단기준의 혼선 문제를 해결하려고 도입한 제도인바, 「집합건물의 소유 및 관리에 관한 법률」이 안정적으로 시행되고 있고, 원칙적으로 구분건물인지 여부는 건축물대장 소관청에서 판단하는 것이 타당하며, 구분건물의 표시에 관한 등기관의 실질적 심사권을 그대로 유지할 경우 건축물대장에는 일반건물로 되어 있는 것이 등기부에는 구분건물로 표시될 수 있어 거래의 불안을 야기하므로 이를 폐지함(안 제52조).

In July 2011, the Ministry of Justice held a public hearing for the amendment of the Act on the Ownership and Management of Aggregate Buildings. The draft proposal includes various institutional implementation measures to systemize the monitoring of managers of aggregate buildings as well as to ensure efficient management.

Key words
aggregate buildings, ownership, efficient management, parceling

Proposed Amendment to the existing Act
The above-mentioned measures include the followings:
 * 1) Improving the defect warranty liability system;
 * 2) Allowing the lessees to participate in the management of sections for common use;
 * 3) Electronic voting; and
 * 4) The obligation of the person who constructs and parcels out a building to make regulations.

After the draft proposal is finalized upon fully gathering the opinions from various sectors through consultations with the Ministry and the prior notice of enactment, it would be submitted to the National Assembly in mid October 2011.

Legislative Intent

 * To provide a system for preventing and settlement of disputes which are frequently caused by insufficient regulations on new forms of aggregate buildings such as apartment complexes, office buildings, and shopping complexes.


 * To modify unreasonable laws and regulations, such as the warranty liability regulation, that caused inconvenience and confusion in its interpretation because it was different from the regulations of the Housing Act.


 * To prevent disputes that occur due to inadequate monitoring against managers as well as an efficient management, and to provide ways to enhance the management system.

Improving the defect warranty liability system

 * In case a small-sized entity goes out of business or becomes insolvent after parceling out a building, the protection of the people who parceled becomes a problem. Thus the builder, alongside the entity that constructs and parcels out the aggregate building, will be subject to warrant liability.


 * While the warranty liability period for crucial parts of the building is extended to 20 years, the remaining parts will be further categorized within a period of 10 years, thereby rationally coordinating the interests of the sectional owner and builder.


 * Laws and regulations have been modified in order to eliminate the confusion in interpretation regarding defect repair and a claim for compensation for damages that substitutes the defect repair.

Addition of the obligation of the person who constructs and parcels out a building to make regulations

 * There have been cases in which the constructing company unilaterally prepares an article draft that does not favor the sectional owner.

Thus, the mayor or the governor of the concerned province shall draft and suggest the 'standard management regulations' for each kind of aggregate building, and it will be mandatory for the constructing company to refer to these when making regulations.


 * The proposed regulations for the managing board of the person who constructs and parcels out a building shall gain an approval at the initial managing board' s meeting within three months from the date when no less than the half of the sectional owners have completed registration.

Making a resolution by electronic vote

 * There has been a problem of low participation at the managing board's meeting, even when it is held for important matters such as electing the manager, due to the indifference of sectional owners or the pressure of being present at the meeting. In order to solve this problem, the electronic voting system will be implemented to enable making a resolution at the meeting through electronic means as well.

Allowing the lessee to participate in the management of sections for the common use

 * Since the lessee who is currently residing in the sections for the common use has no voting rights over the section, protection for the lessee is inadequate and there are concerns over the possibility of weakened management over the aggregate buildings. Thus, the lessee will also be allowed to exercise voting rights over the management of sections for the common use and the appointment of managers.


 * However, as for the matters that have special impacts, such as having the sectional owner bear the extra costs, the approval of the sectional owner must be acquired.


 * - Rate of Rent for Apartments: Nationwide 32.6%, Seoul 35.4%
 * - Rate of Rent for Stores: Nationwide 75.6%, Seoul 91.3%

Improving the means of reporting for managers

 * The means of reporting for managers and the authority to receive such report, which have frequently caused problems due to insufficient regulations, will be specified by the Presidential Decree.


 * The interested parties' claim to peruse the details of the management costs was imposed and the documents for service contracts or construction contracts, etc. and the claim to issue certified copies will be newly added.

Establishment of the Management Committee
In order to monitor the managers when conducting their duties and prevent arbitrary execution, the Management Committee has been introduced to review, resolve, and monitor matters that are under the authority of the manager.

board' s meeting, and its term will be determined by regulations within a period of no more than two years.
 * The managers for the Management Committee will be appointed among the sectional owners by making resolutions at the managing

Establishing a dispute settlement committee

 * While disputes regarding new forms of aggregate buildings such as apartment complexes, office hotels, and shopping complexes frequently arise, a dispute settlement mechanism has been inadequate; given litigation was the only available mean.


 * A dispute settlement committee to prevent and coordinate conflicts among the residents, the person who constructs and parcels out a building, and the builder of the aggregate building will be determined by cities and provinces.