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An amendment has been made to the name of the “Mandatory and Prohibitory Provisions in Standard Form Contract in Housing Rental Standard Contract” to “Mandatory and Prohibitory Provisions in Residential Rental Standard Form Contract” which came into force on September 1, 2020.
Date:2020-08-19
I. Purpose of the Amendment
The "Mandatory and Prohibitory Provisions in Standard Form Contract in Housing Rental Standard Contract" was promulgated by the Ministry of the Interior in accordance with the provisions stipulated in Paragraph 1, Article 17 in the "Consumer Protection Act." These provisions were publically announced on June 23, 2016 and came into effect on January 1, 2017. The "Rental Housing Market Development and Regulation Act" (hereinafter referred to as "Lease Regulations") was enacted on June 27, 2018 covering comprehensive rights and obligations of leasing. In order to enforce the implementation of these regulations, "Clauses a Lease Shall Include and Shall not Include in Rental Contract" for the leases that are not in a consumer relationship have been prescribed. Consistent amendments shall also be made to the "Mandatory and Prohibitory Provisions in Standard Form Contract in Housing Rental Standard Contract" for leases in a consumer relationship in accordance with these regulations to fully protect the rights of both parties of the lease.

II. Intentions and Benefits of the Amendments
To accompany the legal terminology regarding "rental housing contract" in the "Rental Housing Market Development and Regulation Act," the title for these provisions have been changed to "Mandatory and Prohibitory Provisions in Residential Rental Standard Form Contract" and amendments were made to parts of the regulations. A total of 29 points were amended and 3 points were newly added; the content of these amendments and their benefits are as follows:
1. Strengthening the Rights and Obligations Between the Relationship of Both parties of the lease
In order to protect the interests of both parties of the lease, it is specifically stipulated in the Sublease Contract that the amount of security deposit shall not surpass the equivalent of two months' rent, and when leases expire, the lessors shall return the security deposit after deducting any unpaid debt; it is clearly stated that the rental housing management business (hereinafter referred to as "RHMB)" is responsible for repairs. When the RHMB fails to make such repairs within the appropriate period fixed by the lessee, the lessee can make the repairs and require the lessor to reimburse the expense or deduct the expense from the agreed rent; both parties of the lease may terminate the lease before expiry; the process for the expense for removing the remaining items incurred by the lessor can be deducted from the security deposit.
2. Improving the Security for Rental Housing Market Transactions
The Sublease Contract is fair and reasonable compared to those in the market to avoid both parties of the lease being treated unfairly under unfair terms and conditions of the contract. Not only does the Sublease Contract serve the purposes of reducing tenancy disputes and avoiding litigation, but it also helps to improve the security of rental housing market transactions.
3. Providing Fair Transaction Mechanism of Both parties of the lease and Their Rights and Obligations
The fair transaction mechanism is provided to both parties of the lease through the public announcement of the implementation of the Standard Form Contract which enhances the interests of both landlords and tenants considerably. By raising the consumption awareness of renters, the rental housing market can be adequately developed with time. With the dedicated management of the rental housing sector, landlords and tenants can enjoy peace of mind during the leasing process.

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