“Prevention of ‘Sneaky Increase’ in Maintenance Fees Instead of Rent… Introduction of Improved Standard Lease Agreement”

, ‘To prevent a significant increase in miscellaneous fees by raising them substantially to avoid the restriction on raising rental fees through ‘rental fee cleverness increase,’ a new standard lease agreement form for commercial buildings will be introduced.’,
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, ‘The Ministry of Land, Infrastructure and Transport and the Ministry of Justice announced today (8th) that they have improved the standard lease agreement form for commercial buildings to enhance transparency in management fees for commercial buildings and the rights of tenants.’,
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, ‘In the improved standard agreement form, when entering into a commercial building lease agreement, a fixed monthly management fee of 100,000 won or more must indicate detailed breakdowns of major items for billing.’,
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, ‘Even in the case where the management fee is not fixed, the items and calculation method of the management fee should be clearly stated.’,
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, ‘This is because some building owners have significantly increased management fees without disclosing detailed breakdowns to avoid the restriction on raising rental fees exceeding 5% stipulated by the Commercial Building Lease Protection Act, leading to cases where tenants suffer damages.’,
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, ‘The government selected ‘Establishing measures to prevent arbitrary increase in management fees by owners of commercial buildings’ as one of the ‘national proposal policy tasks’ in April and has since been examining improvement measures with related institutions such as the Small Business Market Promotion Agency and the Korea Real Estate Institute.’,
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, ‘Through this improvement, the government expects that tenants will be able to confirm the detailed breakdown of management fees from the time of contract signing, thereby preventing damage to tenants due to unreasonable and excessive increases in management fees.’,
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, ‘[Photo source: Yonhap News / Ministry of Justice]’,
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