Home | Databases | WorldLII | Search | Feedback Laws of the Republic of Korea

ACT ON THE OWNERSHIP AND MANAGEMENT OF AGGREGATE BUILDINGS

251 (Supp. 44)

ACT ON THE OWNERSHIP AND

MANAGEMENT OF AGGREGATE

BUILDINGS

Act No. 3725, Apr. 10, 1984

Amended by Act No. 3826, May 12, 1986

Act No. 5592, Dec. 28, 1998

Act No. 6925, Jul. 18, 2003

Act No. 7502, May 26, 2 0 0 5

Act No. 9172, Dec. 26, 2008

Act No. 9647, May 8, 2009

CHAPTER SECTIONAL OWNERSHIP OF

BUILDING

SECTION 1 General Provisions

Article 1 (Sectional Ownership of Building)

Where several sections into which one building is divided in structure may be independently used, each section may be the object of independent ownership under the provisions of this Act.

Article 1-2 (Sectional Ownership of Business Center Building) (1) Where several parts within one building are sectioned for usage in the modes falling under any of the following subparagraphs, the said building parts (hereinafter referred to as the sectioned stores ) may be made respectively into the object of ownership under the conditions as stipulated by this Act:

1. Sectioned stores shall be used as sales facilities under Article 2 (2) 7 of the Building Act and transportation facilities (excluding collection and delivery facilities) under subparagraph 8 of the same paragraph;

2. The total floor space used for sales facilities and transportation facilities under subparagraph 1 including sectioned stores (hereinafter referred to as sales facilities, etc. ) in one building shall be not less than 1,000 ACT ON THE OWNERSHIP AND MANAGEMENT OF AGGREGATE BUILDINGS 252(Supp. 44)

square meters;

3. Marks capable of clearly discerning the boundaries shall be firmly built on the floor; and

4. Marks of building numbers given by sectioned stores shall be attached firmly.

(2) Matters necessary for the boundary marks and building number marks under paragraph (1) shall be prescribed by the Presidential Decree. [This Article Newly Inserted by Act No. 6925, Jul. 18, 2003] Article 2 (Definitions)

The definitions of the terms used in this Act shall be as follows:

1. The term sectional ownership means the ownership of the object which is the part of the building (excluding the section which has been a section of common use pursuant to Articles 3 (2) and (3)) provided in Article 1 or 1-2;

2. The term sectional owner means the one who has sectional ownership;

3. The term section of exclusive ownership means the section of the building which is be the object of sectional ownership;

4. The term section for common use means the section of the building except the section of exclusive ownership, and the attached facilities of the building that do not belong to the section of exclusive ownership and the attached building which is a section for common use pursuant to Articles 3 (2) and (3);

5. The term site of building means the land on which a building to which the section of exclusive ownership belongs is located and the ground which is the site of the building pursuant to Article 4; and

6. The term right to use site means the right which a sectional owner has on the site of a building so as to own his section of exclusive ownership.

Article 3 (Section for Common Use)

(1) Corridors, stairs that lead to several sections of exclusive ownership, and the sections which, by the building s structure, contribute to the common use of all or a part of the sectional owners shall not be the object of sectional ownership.

(2) The section of the building and the attached building provided in Article 1 or 1-2 may be sections for common use by regulations.

(3) The owner of all the sections of the building or of the attached building provided in Article 1 or 1-2 may fix something equivalent to the 10

253 (Supp. 44)

regulations provided in paragraph (2) of this Article by a notarized document. (4) In the cases of paragraphs (2) and (3) of this Article, it shall be registered that the relevant section is the section for common use. Article 4 (Site of Building according to Regulations) (1) Sites of passage, parking lots, gardens, attached buildings and the area of land used or managed in common with one building to which the part of exclusive ownership belongs and with the land on which such building is located, may be prescribed to be a site of building by regulations. (2) The provision of the Article 3 (3) shall apply mutatis mutandis to the case of paragraph (1) of this Article.

(3) If an area of land on which a building is located ceases to be such land by partial destruction of the building, the land shall be deemed to have been prescribed to be the site of building by the regulations, under paragraph (1). The same shall also apply to a case where a section of the land on which the building is located ceases to be such land by partition. Article 5 (Right and Duty of Sectional Owner, etc.) (1) A sectional owner shall not perform any action which is harmful to maintaining the building s good condition or anything which goes against the common interest of sectional owners regarding the management and the use of the building.

(2) If the section of exclusive ownership is sold in lots for the purpose of residence, a sectional owner shall not, without justifiable reason, use that section for the purpose of use other than residence, or enlarge or rebuild the building by removing or destroying the interior walls. (3) A sectional owner may demand to use any other sectional owner s section of exclusive ownership or the section for common use in respect of which he is not one of the co-owners, within the limitations necessary to maintain or to reform his section of exclusive ownership or the section for common use. In this case, he shall compensate the other sectional owners for any damage by such use.

(4) The provisions of paragraphs (1) through (3) shall apply mutatis mutandis to the one who possesses the section of exclusive ownership without having sectional ownership (hereinafter referred to as a possessor ). Article 6 (Presumption of Defect in Construction or in Maintenance of Building)

If damage is incurred to others from the defect of the construction or of the maintenance of the building to which a section of exclusive ownership belongs, the defect shall be presumed to exist in the section for common use. ACT ON THE OWNERSHIP AND MANAGEMENT OF AGGREGATE BUILDINGS 254(Supp. 44)

Article 7 (Claim to Sell Sectional Ownership)

If there is a sectional owner who has no right to use the site, one who is entitled to demand to remove that sectional owner s section of exclusive ownership may demand of that sectional owner to sell his sectional ownership over to him at the market price.

Article 8 (Prohibition of Partition Demand for Co-owner of Site) If one building, to which an object of sectional ownership belongs, is located on site, co-owners of the site may not demand the partition of the site as long as the site is necessary for the use of that building. Article 9 (Seller s Warranty Liability)

(1) With respect to the warranty liability of the seller who built a building provided in Article 1 or 1-2 and sold it in lots, the provisions of Articles 667 through 671 of the Civil Act shall apply mutatis mutandis.

(2) With regard to the seller s warranty liability under paragraph (1), special agreement which is more disadvantageous to the purchaser than as provided in the Civil Act shall be null and void. SECTION 2 Section for Common Use

Article 10 (Reversion of Section for Common Use, etc.) (1) The section for common use belongs to co-ownership of all sectional owners: Provided, That the section for common use which is obviously provided only to the common use by some members of sectional owners (hereinafter referred to as the section for partial common use ) belongs to the co-ownership of those sectional owners.

(2) The co-ownership as provided in paragraph (1) shall be regulated by the provisions of Articles 11 through 18: Provided, That with respect to the matters as provided in Articles 12 and 17, it may be otherwise provided for by arrangements.

Article 11 (Co-owner s Entitlement to Use)

Each co-owner shall be entitled to use the section for common use in conformity with its purpose.

Article 12 (Share of Co-owner)

(1) Each co-owner s share shall be determined according to the ratio of the size of his section of exclusive ownership.

(2) In case of paragraph (1), if there is a section for partial common use which is of a considerable size, the size of that section for common use shall be added to the size of each sectional owner s section of exclusive 10

255 (Supp. 44)

ownership pursuant to the ratio of the size of each sectional owner in repect of the section for partial common use.

Article 13 (Indivisibility of Shares to Section of Exclusive Ownershipand Section for Common Use)

(1) Co-owner s share to the section for common use shall accompany the disposition of the section of exclusive ownership which he has. (2) Co-owner shall not dispose of his share to the section for common use separately from his section of exclusive ownership. (3) The acquisition or loss of, or any alteration in the real rights on the section for common use need not be registered.

Article 14 (Management of Section for Partial Common Use) Among the matters regarding the management of the section for partial common use, the matters in relation to the interests of all sectional owners and prescribed by the regulations under Article 29 (2) shall be determined by resolution at an all sectional owners meeting, and the other matters shall be determined by resolution at the sectional owners meeting by those who use that section in common.

Article 15 (Alteration of Section for Common Use) (1) Matters regarding the alteration of the section for common use shall be determined by a resolution of not less than 3/4 of the sectional owners and of not less than 3/4 of the voting rights in the sectional owners meeting: Provided, That in cases where an alteration falls under any of the following subparagraphs, it may be determined by a resolution at an ordinary meeting under Article 38 (1):

1. In the case of an alteration that does not incur excessive expenses for improvement of the section for common use; and

2. In the case of an alteration of the section for common use of a recreation condominium for the operation of a recreation condominium business under Article 3 (1) 2 (b) of the Tourism Promotion Act. (2) In the case of paragraph (1), if such alteration has special effect on any other sectional owner s right, the approval of the sectional owner shall be obtained thereto.

Article 16 (Management of Section for Common Use) (1) The matters regarding the management of the section for commonuse, excluding cases in the purview of Article 15 (1), shall be determined by a resolution at an ordinary meeting: Provided, That the preservation thereof may be done by each one.

(2) The provision of paragraph (1) may be provided otherwise by regulations. (3) The provision of Article 15 (2) shall apply mutatis mutandis to the ACT ON THE OWNERSHIP AND MANAGEMENT OF AGGREGATE BUILDINGS 256(Supp. 44)

case of the purview of paragraph (1).

Article 17 (Expense-bearing and Profit-making of Section for Common Use) Each co-owner shall bear the expenses for the management of the section for common use or other duties and gain the profits from that according to the ratio of his share, unless otherwise specified by the regulations. Article 18 (Effect of Credit Incurred in relation to Section for Common Use)

An owner s Credit against another co-owner in relation to the section for common use shall be effective to the special successor of the other co-owner. Article 19 (Application Mutatis Mutandis of Provisions concerning Section for Common Use)

If the site of a building or its attached facilities except the section for common use (including the rights thereon) belong to the co-ownership of sectional owners, the provisions of Articles 15 through 17 shall apply mutatis mutandis to that site and its attached facilities. SECTION 3 Right to Use Site

Article 20 (Indivisibility of Section of Exclusive Ownership and Right to Use Site)

(1) A sectional owner s right to use site shall follow the disposition of his section of exclusive ownership.

(2) A sectional owner shall not dispose the right to use site independently from his section of exclusive ownership: Provided, That the same shallnot apply if specified otherwise by the regulations.

(3) The prohibition of independent disposition as provided in the purview of paragraph (2) shall not be used as a defense against a third party who has acquired real rights in good faith unless the registration (Deung Ki) thereon is made.

(4) The provision of Article 3 (3) shall apply mutatis mutandis to the case of the proviso of paragraph (2).

Article 21 (Ratio of Right to Use Site Which Follows Disposition of Section of Exclusive Ownership)

(1) If a sectional owner has the ownership of two or more sections of exclusive ownership, the right to use site which follows the disposition of each section of exclusive ownership shall be determined by the ratio provided in Article 12: Provided, That the same shall not apply if specified otherwise by regulations.

(2) The provision of Article 3 (3) shall apply mutatis mutandis to thecase of the proviso of paragraph (1).

10

257 (Supp. 44)

Article 22 (Non-Application of Article 267 of Civil Act) In the case of the purview of Article 20 (2), the provision of Article 267 of the Civil Act (including the case of mutatis mutandis application in Article 278 of the Civil Act) shall not apply to the right to use site. SECTION 4 Management Body and Manager

Article 23 (Necessary Foundation of Management Body, etc.) (1) If a sectional ownership relation is established on a building, sectional owners shall form a management body which is composed of all members of sectional owners and has a purpose to carry out the management tasks of the building, the site and the attached facilities. (2) In the case that there is a section for partial common use, sectional owners of such part may form a management body the purpose of which is to perform the business relating to the management of the section for common use, according to the regulations under Article 28 (2). Article 24 (Appointment of Manager, etc.)

(1) A manager shall be appointed if the number of sectional owners is ten persons or more.

(2) A manager shall be appointed or dismissed by the resolution of management body meeting.

(3) If the manager has performed some injustice or has given reason to make it unreasonable to continue his duties, any sectional owner may demand his dismissal to the court.

Article 25 (Authorities and Duties of Manager)

(1) The manager has the authority and duties as follows:

1. Acts for maintenance, management and alteration of the section for common use;

2. Acts to demand and to receive the alloted cost and charges to execute the affairs of the management body and acts of managing that money;

3. Judicial or extra-judicial acts on behalf of the management body in regard to the execution of management body affairs; and

4. Other acts specified by the regulations. (2) The manager s right of representation may be restricted: Provided, That the restriction may not be set up against the third party acting in good faith.

Article 26 (Manager s Duty of Report, etc.)

(1) The manager shall have a duty of operation report to the sectional owners once every year at a fixed time.

ACT ON THE OWNERSHIP AND MANAGEMENT OF AGGREGATE BUILDINGS 258(Supp. 44)

(2) To the rights and duties of managers not provided for in this Act or regulations, the provisions of mandate in the Civil Act shall apply mutatis mutandis.

Article 27 (Liability of Sectional Owners for Obligations of Management Body)

(1) If the management body is not able to clear off its obligation with its own property, sectional owners shall be liable for the obligations of the management body according to the ratio of shares provided in Article 12: Provided, That the allotment may be determined otherwise by the regulations.

(2) The sectional owner s special successor shall be liable for the obligations of the management body which has been incurred before his succession. SECTION 5 Regulations and Meeting

Article 28 (Regulations)

(1) The matters between the sectional owners regarding the management or the use of building, site and attached facilities which were not provided for in this Act, may be determined by regulations. (2) The matters regarding the section for partial common use, which is not of concern to the interests of all sectional owners may be determined by the sectional owners who use this section in common, unless determined otherwise by all sectional owners.

(3) In the cases of paragraphs (1) and (2), the rights of those who are not sectional owners shall not be prejudiced thereby. Article 29 (Establishment, Alteration and Abolishment of Regulations) (1) The establishment, alteration and abolishment of regulations shall be done at a meeting of the management body by the consent of not less than three fourths of both sectional owners and voting rights. In the case that the establishment, alteration and abolishment of regulations has a special effect on some sectional owners rights, their approval shall be needed thereto.

(2) The establishment, alteration and abolishment of regulations by whole members of sectional owners regarding the matters provided in Article 28 (2) may not be done if, as common users of that section for partial common use, those who would be more than one quarter of all sectional owners, or the one who has more than a quarter of all voting rights, are opposed thereto. Article 30 (Safeguarding and Inspection of Regulations) (1) Regulations shall be kept by the manager, sectional owner or the agent 10

259 (Supp. 44)

of sectional owner who uses the building.

(2) The sectional owner or his agent who shall keep the regulations under paragraph (1) shall be appointed by a resolution at a meeting of the management body, unless provided otherwise in the regulations. (3) The interested parties may demand of the one who keeps the regulations under paragraph (1) the inspection or the delivery of a copy of the regulations by paying a fixed fee.

Article 31 (Power of General Meeting)

The affairs of the management body shall be executed by a resolution at a meeting of the management body, except the matters delegated to the manager by this Act or the regulations.

Article 32 (Ordinary Meeting of Management Body)

The manager shall convene the ordinary meeting of the management body once every year at a fixed time.

Article 33 (Extraordinary Meeting of Management Body) (1) The manager may convene a meeting of the management body whenever he deems it to be necessary.

(2) The manager shall convene a meeting of the management body when it is requested by those who have not less than one fifth of the sectional owners and at the same time have not less than one fifth of voting rights, with its purpose stipulated: Provided, That the quorum may be fixed otherwise by regulations.

(3) If the notification procedure for a meeting, the convening date of which would be within two weeks from the date of the request, is not taken within one week from the date of the request provided in paragraph (2), the sectional owner who requested to convene the meeting may convene the meeting by himself.

(4) If there is no manager, the sectional owner or the one who has the voting rights which would be not less than one fifth of all voting rights, may convene the meeting. This quorum may be specified otherwise by the regulations. Article 34 (Notice to Convene Meeting)

(1) In convening the meeting of the management body, a notice shall be dispatched to each sectional owner at least one week prior to the day set for such meeting, with the subject matters of the meeting specified: Provided, That such period may be specified otherwise by the regulations. (2) In the case that the section of exclusive ownership belongs to the coownership of several people, the notice provided in paragraph (1) shall be dispatched to the one who is appointed to exercise the voting rights (if such one does not exist, one of the co-owners) under Article 37 (2). ACT ON THE OWNERSHIP AND MANAGEMENT OF AGGREGATE BUILDINGS 260(Supp. 44)

(3) The notice of paragraph (1) shall be dispatched to the appointed place when the sectional owner has notified a special place to the manager, and when he has not notified a special place, to the place where his section of exclusive ownership exists. In this case the notice of paragraph (1) shall be deemed to be reached at the time when it is reached in ordinary cases. (4) The notice of paragraph (1) to the sectional owner whose address is in the building or to the one who has not fixed the place of notice as referred to in paragraph (3), may be specified by the regulations which may be substituted by posting a bulletin at an appropriate place in the building. In this case the notice of paragraph (1) shall be deemed to be reached at the time of posting the bulletin.

(5) If matters which are the objective of the meeting are related to Article 15 (1), 29 (1), 47 (1) or 50 (4), the contents of its bill and program shall be written on the notice.

Article 35 (Omission of Convocation Procedure)

The meeting of the management body may convene a meeting without convocation procedure if all sectional owners consent thereto. Article 36 (Objects of Resolution)

(1) The meeting of the management body may adopt resolutions only with regard to the matters which have been notified in advance under Article

34. (2) The provision of paragraph (1) shall not apply thereto if as otherwise provided for by the regulations, as long as a special quorum has not been fixed with regard to the resolution of the management body meeting in this Act.

(3) The provisions of paragraphs (1) and (2) shall not apply to the management body meeting under Article 35.

Article 37 (Voting Rights)

(1) The voting rights of each sectional owner shall be determined by the ratio of shares provided in Article 12, unless otherwise provided for in the regulations.

(2) If the section of exclusive ownership belongs to the co-ownership of several persons, co-owners shall appoint one person who shall perform the voting right at the management body meeting.

Article 38 (Method of Resolution)

(1) In the proceedings of the management body, resolutions shall be adopted by the majority that consists of not less than half the sectional owners and voting rights unless otherwise provided for in this Act or regulations. (2) Voting rights may be performed by documents or delegates. 10

261 (Supp. 44)

Article 39 (Chairman and Minutes)

(1) The manager or the oldest person among the sectional owners who convened the meeting shall be the chairman of a meeting of the management body: Provided, That the same shall not apply if otherwise appointed by special provisions of the regulations or by a resolution of the management body meeting.

(2) Minutes shall be made in respect to the proceedings of a meeting of the management body.

(3) The minutes shall contain the course of the meeting and the results thereof, and the chairman as well as not less than two sectional owners who were present shall sign and seal thereon.

(4) The provision of Article 30 shall apply mutatis mutandis to the minutes of the meeting.

Article 40 (Possessor s Right to State Opinion)

(1) One who possesses the section of exclusive ownership under the consent of the sectional owner is entitled to attend the meeting and state an opinion if he is concerned with the matters which has been the objective of meeting. (2) In the case of paragraph (1), the one who convenes the meeting shall post the date, time, place and the objective of meeting to a bulletin at the appropriate place in the building without delay after he gives notification of convocation under Article 34.

Article 41 (Resolution by Documents)

(1) In cases where not less than 4/5 of the sectional owners and not less than 4/5 of the voting rights agree in writing with regard to matters prescribed to be resolved at the sectional owners meeting under this Act or rules, the resolution shall be deemed to have been passed at the sectional owners meeting: Provided, That in cases under Article 15 (1) 2, if a majority of the sectional owners and a majority of the voting rights agree in writing, the resolution shall be deemed to have been passed at the sectional owners meeting. (2) If the sectional owners appoint one of them to be their agent and notify such appointment to the management body, the agent may exercise the voting rights on behalf of the sectional owners by attending the manage- ment body meeting or by document.

(3) The provision of Article 30 shall apply mutatis mutandis to the docu- ments of paragraph (1).

Article 42 (Effect of Regulations and Resolution of Management Body Meeting)

(1) The regulations and the resolution of the management body meeting shall ACT ON THE OWNERSHIP AND MANAGEMENT OF AGGREGATE BUILDINGS 262(Supp. 44)

be effective to the special successor of the sectional owner. (2) The possessor shall have the same obligation which the sectional owner bears in relation to the use of building, site or attached facilities according to the regulations or the resolution of the management body meeting. SECTION 6 Measures Against Breacher of Obligation Article 43 (Demand to Suspend Behavior which is against Common Interest) (1) If the sectional owner conducts any behavior of Article 5 (1) or may conduct such behavior, the manager or sectional owner who is appointed by a resolution of the management body meeting may demand of such sectional owner to suspend, remove the result of or take the measure to prevent that behavior.

(2) The instituting of lawsuit under paragraph (1) requires the resolution of the management body meeting thereto.

(3) The provisions of paragraphs (1) and (2) shall apply mutatis mutandis to the case where the possessor did or may perform the behavior under Article 5 (1) to which paragraph (4) of the same Article shall apply mutatis mutandis.

Article 44 (Demand for Prohibition of Use)

(1) In the case of Article 43 (1), as a behavior provided in Article 5 (1), which accompanies an obvious obstacle to community life which may not be easily removed by the demand provided in Article 43 (1), and thus makes it particularly hard to secure the use of the section for common use or to maintain the community life of the sectional owners, the manager or the sectional owner who was appointed by the resolution of the management body meeting may institute a lawsuit against the sectional owner who performs such behavior for the prohibition of use of the section of exclusive ownership for a reasonable period.

(2) Resolution under paragraph (1) shall be adopted by the majority that would be not less than three fourths of each of the sectional owners and voting rights.

(3) In the resolution of paragraph (1), such sectional owner shall be given an opportunity for an explanation in advance.

Article 45 (Auction of Sectional Ownership)

(1) If the maintenance of community life becomes particularly difficult due to the result of the sectional owner s breach of Articles 5 (1) and (2) or the 10

263 (Supp. 44)

duty under the regulations, the manager or sectional owner who was appointed by the resolution of the management body meeting may request to the court for the order to auction the section of exclusive ownership and the right to use the site which belongs to such sectional owner. (2) In connection with the request under paragraph (1), the resolution of the management body meeting which shall be adopted by the majority which would be not less than three fourths of both the sectional owners and voting rights shall be required.

(3) In the process of resolution under paragraph (2), an opportunity for explanation shall be given to such sectional owner. (4) If the decision which ordered the auction according to the request provided in paragraph (1) becomes final, the one who has requested such a decision may move for the auction thereof: Provided, That the same shall not apply thereto if the duration of six months after the finalization of the decision expires.

(5) Such a sectional owner under paragraph (1) shall not be the successful bidder in the auction held according to the request under the purview of paragraph (4).

Article 46 (Demand for Assignment against Possessor of Section of Exclusive Ownership)

(1) If the maintenance of community life becomes particularly difficult due to the result of the possessor s breach of duty under Article 45 (1), the manager or the sectional owner who was appointed by the resolution of the management body meeting may rescind the contract, the object of which is that section of exclusive ownership, and demand to deliver the occupation of that section.

(2) The provision of Articles 44 (2) and (3) shall apply mutatis mutandis to the case of paragraph (1).

(3) The one who receives the delivery of occupation pursuant to paragraph (1) shall deliver that section of exclusive ownership without delay to the one who has the authority to possess it.

SECTION 7 Re-building and Restoration

Article 47 (Resolution for Re-building)

(1) If the building was damaged or partly destroyed after a considerable ACT ON THE OWNERSHIP AND MANAGEMENT OF AGGREGATE BUILDINGS 264(Supp. 44)

time after its construction, or unreasonable cost is needed for its repair, restoration, or management, compared with its price under other circumstances, or re-building brings a remarkable increase of utility compared with the expenses needed thereto by a change of utilizing neighboring land or under other circumstances, the management body meeting may adopt a resolution the contents of which are to break down the building and use its site for a new building which still belongs to the sectional ownership: Provided, That if the contents of re-building which still belongs to the sectional ownership: Provided, That if the contents of re-building have special effect on sectional owners of other buildings in the same aggregate housing area, the consent of those sectional owners are required therefor.

(2) The resolution under paragraph (1) shall be adopted by a majority not less than four fifths of both the sectional owners and voting rights. (3) At the resolution for re-building, the matters as mentioned below shall be determined thereby:

1. Outline of the design of the new building;

2. Rough estimate of costs necessary for the removal of the building and construction of the new building;

3. Matters regarding the allotment of costs provided in Item 2; and

4. Matters regarding the allotment of sectional ownership of the new building.

(4) The matters provided in paragraph (3) 3 and 4 shall be determined under the principle of equity.

(5) On the minutes of the management body meeting for the resolution under paragraph (1), the approval and/or disapproval of each sectional owner thereto shall be recorded.

Article 48 (Demand for Sale of Sectional Ownership, etc.) (1) Once the resolution for re-building is adopted, the one who convened the meeting shall notify without delay in writing to the sectional owner (including his successor) who did not approve that resolution, that he should confirm whether he will participate in the re-building in accordance with the contents of the resolution or not.

(2) The sectional owner who received the notification under paragraph (1) shall reply within two months from the date of receipt thereof. (3) If there is no reply within the period under paragraph (2), that sectional 10

265 (Supp. 44)

owner shall be deemed to have dispatched a reply of non-participation in the re-building.

(4) If the period under paragraph (2) expires, each sectional owner who approved of the resolution for re-building, each sectional owner (including his successor) who confirmed that he will participate in the re-building in accordance with the resolution, or the one who was appointed to purchase the sectional ownership and right to use the site by the agreement of all the above-mentioned parties (hereinafter referred to as the appointee for purchase ) may demand that the sectional owner (including his successor) who confirmed non-participation in the rebuilding should sell his sectional ownership and right to use the site at the market price within 2 months from the expiration date of period provided in paragraph (2). The same shall apply to the right to use the site by the one who acquired only the right from the sectional owner after the resolution for re-building was adopted.

(5) In the event of demand under paragraph (4), if the daily life of the sectional owner who confirmed non-participation in the re-building might suffer remarkable difficulty and if it does not bring about considerable harm to the achievement of re-building, the court may, upon the demand of the sectional owner, grant a grace period in regard to the evacuation of the building within the period of one year from the date of payment or offer of the price for the sectional ownership or the right to use the site. (6) In the case that the work to remove the building is not set about within two years from the date of resolution for the re-building, the one who had sold his sectional ownership or right to use the site in accordance with paragraph (4) may demand within six months from the expiration date of the above-mentioned duration to redeem his rights for the amount of money that is equivalent to the price which the purchaser had paid: Provided, That the same shall not apply to the case in which there is justifiable reason which makes reasonable for the work to remove the building not to have been set about.

(7) The provision of the purview of paragraph (6) shall apply mutatis mutandis to a case where the work to remove the building provided in the proviso of paragraph (6) is not set about within six months from the date when a reason to make reasonable for the work to remove the building to not have been set about ceases to exist. In this case, the phrase set forth ACT ON THE OWNERSHIP AND MANAGEMENT OF AGGREGATE BUILDINGS 266(Supp. 44)

in the purview of the same paragraph, within six months from the expiration date of the above mentioned duration shall be deemed to be until the date coming earlier between the expiration date of six months period from the date on which it is recognized that the above-mentioned reason has ceased to exist and the expiration date of two years period from the date on which above-mentioned reason has ceased to exist.

Article 49 (Agreement on Re-building)

Each sectional owner who approved the resolution for re-building, each sectional owner who make a reply to the effect that he will participate in re-building which follows the contents of resolution for re-building, or the appointee for purchase (including his successor) who purchased the sectional ownership or rights to use the site, shall be deemed to have agreed on the re-building which follows the contents of the resolution for re-building. Article 50 (Restoration in Case of Partial Destruction of building) (1) In a case where a part of the building, the price of which is not more than a half of that of the cost of the whole building, is destroyed, each sectional owner may restore the section for common use and his section of exclusive ownership which was destroyed: Provided, That the same shall not apply to the case where the resolution under Article 47 (1) or the resolution for the restoration of section of common use is adopted before the restoration work is set about.

(2) The one who restored the section for common use under paragraph (1) may demand for the reimbursement of the restoration expenses to the sectional owners in accordance with the ratio of their share provided in Article 12.

(3) The provisions of paragraphs (1) and (2) shall not apply if provided as otherwise by regulations.

(4) In the event of partial destruction of the building except in the case of the purview of paragraph (1), the management body meeting may adopt a resolution for the restoration of the destroyed section for common use by the majority not less than four fifths of both the sectional owners and voting rights.

(5) The provision of Article 47 (5) shall apply mutatis mutandis to a case where the resolution under paragraph (4) is adopted. (6) Once the resolution under paragraph (4) is adopted, the sectional owners except the ones (including their successors) who approved the 10

267 (Supp. 44)

resolution may demand of the sectional owners who approved that resolution (including their successors) the purchase of his rights on building and its site at the market price.

(7) In the case of paragraph (4), if no resolution under the same paragraph or Article 47 (1) is adopted within six months from the date of the partial destruction of the building, each sectional owner may demand of the other sectional owners the purchase of his rights to the building and its site at the market price.

(8) In the cases of paragraphs (2), (5) and (7), the court may grant a grace period to a reasonable extent with respect to the payment of the reimbursement or price thereof according to the request of the sectional owner who was demanded to reimburse or to purchase.

CHAPTER AGGREGATE HOUSING AREA

Article 51 (Aggregate Housing Area Management Body) (1) If there are several buildings in one aggregate housing area and the land or the attached facilities therein (including the rights thereof) belong to the co-ownership of the owners of that building (in case of the building in which the section of exclusive ownership exists, the sectional owners thereof), these owners may form a body to manage the land or attached facilities in the aggregate housing area, convene a meeting, establish regulations and appoint a manager, according to this Act. (2) In the case where there are several buildings in one aggregate housing area and the land or the attached facilities therein (including the rights thereof) belong to the co-ownership of only part of the owners of the buildings (in the case of the building in which the section of exclusive ownership exists, the sectional owner thereof), these owners may do as set forth in paragraph (1).

(3) The aggregate housing area management body provided in paragraph (1) may aim as a whole or in part at the business of each management body to which the members of the aggregate housing area management body belong: Provided, That in this case, the resolution of the management body meeting which shall be adopted by a majority not less than three fourths of each of the management body members and voting rights shall be required ACT ON THE OWNERSHIP AND MANAGEMENT OF AGGREGATE BUILDINGS 268(Supp. 44)

thereto.

Article 52 (Provisions which Apply Mutatis Mutandis to Aggregate Housing Area)

The provisions of Articles 3 and 24 through 42 shall apply mutatis mutandis to the case of Article 51.

CHAPTER BUILDING LEDGER OF

SECTIONAL BUILDING

Article 53 (Compilation of Building Ledger)

(1) The governor of a Special Self-Governing Province, the head of a Si/Gun/autonomous Gu (hereinafter referred to as Competent Authority ) shall keep building ledgers of buildings, drawings of buildings and ground plans of each floor, as far as buildings are the ones to which this Act is applicable.

(2) The house ledger shall be compiled with the paper to manifest one building and the paper to manifest the building of the section of exclusive ownership which belongs to that one building.

(3) In regard to one building, one paper shall be offered hereto and in regard to the building of the section of exclusive ownership, one paper shall be offered to each sectionalized building.

(4) The house ledgers of sectionalized buildings which belong to one building shall be compiled into one ledger book and the papers which manifest the sectionalized building shall be compiled following the papers which manifest one building.

(5) In the case of paragraph (4), if the papers which have been compiled reach excessive amount, they may be made into several books. Article 54 (Matters to be Registered in Building Ledger) (1) On the papers to manifest one building, the matters as mentioned below shall be registered:

1. The location and the lot number of one building;

2. The number of one building, if any;

3. The structure and the size of one building (in a case of the building with the sectioned stores, it shall include the aggregate of floor space 10

269 (Supp. 44)

used as sales facilities, etc.);

4. The number of the section of exclusive ownership which belongs to one building; and

5. Other matters prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs.

(2) On the papers to manifest the section of exclusive ownership, the matters as mentioned below shall be registered:

1. The number of section of exclusive ownership;

2. The number of one building to which the section of exclusive ownership belongs;

3. The type, structure and size of the section of exclusive ownership;

4. If there is an attached building, the type, the structure and the size thereof;

5. The name or title, and the address of residence or office of the owner; if there are not less than two owners, their share of each owner; and

6. Other matters prescribed by Ordinance of the Ministry of Land, Transport and Maritime Affairs.

(3) In the case of paragraph (2) 4, if the attached building is the one which is independent from that section of exclusive ownership or the one which sectionalized one independent building, the location and the lot number of such one building, and the number, type, structure and size of the building shall be registered on the house ledger. (4) In the case of paragraph (3), in registering the matters regarding the manifestation of the building and owner, the cause, its date and the date of registration thereof shall be registered.

(5) With respect to the registration of the section for common use under the provisions of Articles 3 (2) and (3), the provisions of paragraphs (2) and (4) shall apply mutatis mutandis: Provided, That in this case, it shall be registered that the relevant section is the section for common use on the manifestation column.

(6) In a case of the sectioned stores, the purport that there exist no party walls shall be entered on a structure column in the printed form for exclusively-owned section. Article 55 (Proceedings for Registration on Building Ledger) The registration on the Building Ledger shall be done according to the ACT ON THE OWNERSHIP AND MANAGEMENT OF AGGREGATE BUILDINGS 270(Supp. 44)

application by owner and others, or by the inspection decision of competent authorities. Article 56 (Application of Initial Registration on Building Ledger) (1) Any one who constructed a new building, to which this Act applies, shall apply for a simultaneous registration on the building ledger of all sections of exclusive ownership which belong to such building within one month of its construction. (2) On the application documents under paragraph (1), the matters as provided in Article 54 shall be written and the drawing plans of the building, the ground plans (in a case of the sectioned stores, it shall refer to the ground plan drawn by a certified architect reported under Article 23 of the Certified Architects Act or a surveying technician stipulated under subparagraph 15 of Article 2 of the Land Survey Act, with entering the result of surveying of a boundary mark of sectioned stores) of each floor, and the document which proves that the building belongs to the ownership of the applicant shall be added thereto, and among the matters written in the application document if there is something which is provided by the regulations or by the notarized document that is equivalent to the regulations, such regulations or notarized document shall be added thereto. (3) The provisions of paragraphs (1) and (2) shall apply mutatis mutandis thereto if a building to which this Act had not been applied becomes a building to which this Act shall apply by sectionalization or construction. (4) In the case of paragraph (3), the owner of the building may file the application under paragraph (1) in subrogation of the owner of another building.

Article 57 (Application for Alteration Registration on Building Ledger) (1) If there is alteration of the matters registered on the building ledger, the owner shall apply for the alteration registration of those matters within one month therefrom. (2) One or several persons among the owners of sections of exclusive ownership may apply for the registration of alteration with respect to the matters to manifest one building and/or the section for common use within the period provided in paragraph (1).

(3) On the application document of paragraphs (1) and (2), the matter that is enough to manifest the altered matters and one building shall be written, and the documents to prove that alteration shall be added thereto, and in 10

271 (Supp. 44)

the case of the alteration of the building s place, structure, size or in the case of the construction of an attached building, the plan drawing of the building or the ground plans of each floor shall be added thereto. (4) The sectioned stores shall be prohibited from changing into another use than the use pursuant to Article 1-2 (1) 1.

Article 58 (Succession of Application Duty)

If there is an alteration of ownership, the application for the registration under Articles 56 and 57 (1) which was the duty of the ex-owner, shall be done by the new owner within one month from the date of the owner s alteration.

Article 59 (Investigation at Discretion of Competent Authorities) (1) Where a registration on the building ledger is made upon application under Article 56 or 57 or ex officio, the competent authority may have its officials investigate the matters about the manifestation of the building.

(2) Where there exist any applications under Article 56 or 57 in respect of the sectioned stores, the competent authority shall conduct investigations on whether or not the details of applications are compatible with each subparagraph of Article 1-2 (1), and whether or not they coincide with the actual status of the building. (3) In the case of investigations under paragraphs (1) and (2), the relevant public official may enter that building during the time from sunrise to sunset, make some inquiries and ask for the submission of documents to the possessor or to any other interested party. In this case, the certificate to identify the said public official shall be presented to the persons concerned.

Article 60 (Conduct after Investigation)

(1) In the case of Article 56, if the contents of the application are judged to be unjust in light of the result of the relevant public official s investigation, the competent authorities shall order the correction thereof with the reasons stipulated, and if the situation of the building is not considered to comply with the provision of Article 1 or 1-2 although the contents of report would be corrected, the competent authorities shall reject the application for registration and register the whole building as one building on the ordinary ACT ON THE OWNERSHIP AND MANAGEMENT OF AGGREGATE BUILDINGS 272(Supp. 44)

building ledger. (2) In the case of paragraph (1), the reasons for rejection shall be notified in writing to the applicant within seven days from the date of registration on the ordinary building ledger. Article 61 (Application for Registration (Deung Ki) in Case of Rejection of Registration (Deung Rok))

(1) If the competent authorities reject the registration (Deung Rok) on the house ledger under this Act, the applicant may apply for the registration (Deung Ki) to the competent registry office (Deung Ki So) within fourteen days from the date of notification service under Article 60 (2) with documents added thereto.

(2) The provisions of subparagraph 10 of Article 55 and Article 56 (1) and (2) of the Registration of Real Estate Act shall not apply to the application for the registration (Deung Ki) provided in paragraph (1). Article 62 (Notification of Registration (Deung Ki) Completion) The registration official shall notify to the competent authorities without delay when he has admitted the application for registration of Article 61 to be justifiable and registered on the registry (Deung Ki Bu).

Article 63 (Registration to Building Ledger and Closure thereof in Accordance with Notification)

The competent authorities shall register the building on the building ledger under this Act and close the former building ledger when he received the notification under Article 62 from the registration (Deung Ki) official. Article 64 (Correction and Closure in Accordance with Notification) (1) The competent authorities shall investigate the present situation and make a new ledger when he has received a notification from the registration official that the building ledger did not comply with the provision of Article 1 or 1-2 under the provision of Article 56 (3) of the Registration of Real Estate Act. (2) If it is found that the present situation relating to the building does not comply with the provision of Article 1 or 1-2 following the result of re investigation provided in paragraph (1), such a building ledger shall be closed.

10

273 (Supp. 44)

(3) In the case of closure of the building ledger under paragraph (2), the competent authorities shall notify such fact to the parties and register that building on the ordinary building ledger.

CHAPTER PENAL PROVISIONS

Article 65 (Penalty)

(1) Any person who damages, moves, or removes the boundary marks or building number marks stipulated by Article 1-2 (1), or who has made the boundaries unrecognizable by other means, shall be punished by an imprisonment with prison labor for not more than 3 years or a fine of not more than 10 million won. (2) When a certified architect or a surveying technician has entered the surveying results differently from the facts on a ground plan stipulated under Article 56 (2), he shall be punished by an imprisonment with prison labor for not more than 2 years or a fine of not more than 5 million won.

(3) Deleted.

Article 66 (Fines for Negligence)

(1) Any person who has refused, hindered or evaded an investigation pursuant to Article 59 shall be punished by fines for negligence not exceeding two million won. In such cases, the same shall also apply to any person who has failed to present a document or has presented a false document, or any person who has failed to make a statement to questions or has made a false statement.

(2) A manager, a chairman, or any person who is to keep the regulations, minutes or documents, who has done such an act, shall, in cases where he/she falls under any of the following subparagraphs, be punished by fines for negligence not exceeding one million won:

1. In cases where he/she has failed to make a report or has made a false report in violation of Article 26 (1) (including cases where Article 52 applies mutatis mutandis to this provision);

2. In cases where he/she has failed to keep the regulations, minutes or documents in violation of Articles 30 (1), 39 (4) and 41(3) (including cases where Article 52 applies mutatis mutandis to these provisions); ACT ON THE OWNERSHIP AND MANAGEMENT OF AGGREGATE BUILDINGS 274(Supp. 44)

3. In cases where he/she has refused a request for perusal of the documents prescribed in subparagraph 2 or for delivery of an certified copy thereof without any justifiable reasons in violation of Articles 30 (3), 39 (4) and 41 (3) (including cases where Article 52 applies mutatis mutandis to these provisions);

4. In cases where he/she has failed to prepare the minutes or has failed to state matters which should be stated in the minutes, or has made a false statement in the minutes in violation of Article 39 (2) and (3) (including cases where Article 52 applies mutatis mutandis to these provisions); and

5. In cases where any responsible person for application pursuant to Articles 56 (1), 57 (1) and 58 has neglected an application for such registration. (3) Fines for negligence pursuant to paragraphs (1) and (2) shall be imposed and collected by the Competent Authority.

[This Article Wholly Amended by Act No. 9647, May 8, 2009] ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force one year after the date of its promulgation. Article 2 (Transitional Measures concerning Re-Compilation of Existing House Ledger)

(1) The house ledger of the sectional building which exists at the time when this Act enters into force shall be re-compiled according to the form provided in this Act within one year from the date of the enforcement of this Act. In the case that the house ledger has not been kept, the building ledger according to the provisions of the Building Act shall be deemed to be the house ledger.

(2) The re-compiled building ledger under the latter part of paragraph (1) shall be deemed to be the house ledger under this Act. Article 3 (Transitional Measures concerning Share of Section for Common Use)

In the case that the section for common use which exists at the time when this Act enters into force belongs to the co-ownership of all or a part of the sectional owners, if the share of each co-owner does not comply with Article 12, such share shall be deemed to have been determined by the regulations under the proviso of Article 10 (2).

10

275 (Supp. 44)

Article 4 (Transitional Measures)

The provisions of Articles 20 through 22 related to the section of exclusive ownership which exists at the time when this Act enters into force and rights to use the site shall apply at the expiration of two years from the date of enforcement of this Act: Provided, That with regard to the building on which the registration pursuant to the provisions of Article 2 (2) of the Addenda of the amended Registration of Real Estate Act (Act No.3726) has been completed, the provisions of Articles 20 through 22 of this Act shall apply from the day following the date of completion of the registration.

Article 5 (Transitional Measures concerning Acquisition of Share of CoOwnership)

(1) In the case that the building which has been registered as a sectional building at the time when this Act enters into force does not comply with Article 1 so that its registration paper is closed, the owner of that building shall be deemed to have acquired a share of co-ownership of one building to which that building belongs at the rate of the allotment sale price or if it is not clear, at the rate of the price calculated by the appraiser. (2) In the case of paragraph (1), registration (Deung Ki) of rights other than ownership, which have been executed on that sectional building shall have effect on the share thereof as a matter of course. Article 6 (Relations with Housing Act)

The special provisions of the Housing Act regarding the method and standard of the management of aggregate housing shall be effective, unless they conflict with this Act and damage the basic rights of the sectional owners: Provided, That the provisions of Article 46 of the Housing Act shall govern the warranty liability, and the defect repair of collective housing.

ADDENDUM

This Act shall enter into force on the date of its promulgation. ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. Articles 2 and 3 Omitted.

ADDENDA

ACT ON THE OWNERSHIP AND MANAGEMENT OF AGGREGATE BUILDINGS 276(Supp. 44)

(1) (Enforcement Date) This Act shall enter into force six months after the date of its promulgation.

(2) (Transitional Measures) Where the building which was registered as a sectional building at the time of enforcement of this Act is not compatible with the provisions of Article 1, but it has completed a modified registra- tion on the building ledger under Article 54 (1) 3 and (5) within 2 years after enforcement of this Act, by equipping itself with the requisites for the sectioned store as stipulated by Article 1-2 (1), and by appending the ground plan under Article 56 (2), it shall be deemed to have become the object of ownership by sectioned stores at the time when it has been registered as a sectioned store.

ADDENDUM

This Act shall enter into force on the date of its promulgation. ADDENDUM

This Act shall enter into force on the date of its promulgation. ADDENDA

Article 1 (Enforcement Date)

This Act shall enter into force on the date of its promulgation. Article 2 (Transitional Measures concerning Penal Provisions and Fines for Negligence)

When applying the penal provisions and a fine for negligence to an act done before this Act enters into force, the previous provisions shall apply thereto. Article 3 (Transitional Measures concerning Trial for Fine for Negligence) The previous provisions shall apply to trial for a fine for negligence pending in court at the time when this Act enters into force.