You Can Defer Moving Into a 'Home With Tenants' Until 2029... But Not If the Tenant Changes [Real Estate AtoZ]

Land Transaction Permit Zone Occupancy Deferment Extended by One Year
Only Homes Tenant-Occupied or With Jeonse Rights as of October 1 Eligible
One Lease Renewal by Existing Tenant Allowed, Up to Two Years Maximum

Purchasing a so-called 'home with tenants' in a designated land transaction permit zone does not automatically allow anyone to defer moving in through 2029. The current occupant—the tenant—must extend their lease. If the tenant moves out and a new lease is signed with a different occupant, the period of the new lease is not eligible for the actual residence deferment.

According to the Ministry of Land, Infrastructure and Transport on September 17, from October 1, lease renewal contracts will newly be included as eligible for actual residence deferment in land transaction permit zones. The application deadline for the deferment, which was previously December 31, 2026, will be extended by one year to December 31, 2027.

The reference date is October 1, 2026. On this date, the property must either be occupied by the existing tenant or a jeonse right must be established. If the current tenant does not renew their lease, you can only defer moving in until the original termination date of that lease as of October 1, 2026. The latest possible date for moving in is September 30, 2028.

The only way to defer moving in until 2029 is if the existing tenant renews their lease. Only one renewal is recognized, for a maximum of two years. The renewal contract must be completed before applying for the deferment. Additionally, the renewed contract must commence between October 1, 2026, and December 31, 2027.

For example, if the current tenant signs a renewal contract to remain for an additional two years starting at the end of December 2027, the contract will end at the end of 2029. A homebuyer without a property can postpone moving in until the tenant moves out.

On the other hand, if the existing tenant vacates the property after October 1, 2026, and a new tenant moves in, the situation changes. A newly signed lease with the new tenant does not count as a 'renewal contract' under the revised rules. The new contract period with the replacement tenant will not be recognized as a valid deferment period for actual residence.

With this new measure, even if the existing tenant renews the contract, the new homeowner can continue to defer their move-in until the contract’s end. While this may extend the time an existing tenant can stay in the same property, it does not increase the number of properties available to new renters looking for a jeonse home.

Ham Youngjin, Head of Real Estate Research Lab at Woori Bank, commented, "This is not a measure that will drastically increase the supply of jeonse units; rather, it is a supplementary measure to reduce conflicts between buying and renting. Recognizing the renewal of existing tenants’ leases can help prevent a sudden reduction in jeonse supply, but whether rental supply will be maintained in the long term remains to be seen."

Lee Eunhyeong, Research Fellow at the Korea Institute of Construction Policy, remarked, "Whether it’s a multi-homeowner or a non-resident single homeowner, any property not occupied by its owner becomes potential rental supply. I’m not sure what the government’s plan is for simultaneously maintaining the current policy direction while stabilizing the rental market."

This content was produced with the assistance of AI translation services.