Lease of Other Residential Area

When an estate, other land area, or a plot of land without attaching the rights of a plot lease, is leased for purposes of the tenants permanent residence, either in the tenant’s building or a building to be built by the tenant, such lease constitutes lease of other residential area.

Leases of other residential areas are subject to the general provisions of the Tenancy Act, as well as a number of special provisions, some of which are set out below.

The agreement must be made for a fixed-term not exceeding 100 years. If the intention is to erect primarily the tenant’s buildings on the area, the minimum term of the agreement shall be 30 years.

In the absence of an agreement regarding the term, the term shall be deemed to be 30 years, if the intention is for the tenant to erect the tenant’s buildings on the area. Otherwise, the term shall be deemed to be 2 years.

The tenancy shall be transferable without the landlord’s consent, unless such right is explicitly restricted in the lease agreement.

The parties are permitted to agree upon the tenant’s construction obligation.

In case the tenant fails to comply with its construction obligation, the landlord shall be entitled to issue a notice to terminate the lease agreement at the earliest one month after expiry of the deadline set for such obligation.

Upon termination of the lease, the landlord is required to redeem buildings etc. situated on the area, unless otherwise agreed.