Common Violations of Lease Agreements by Lessees of National Building Lots(Including Building Lots Lease by Tender)

Type

Conditions of the Violation of the Lease Agreement

Expand, Repair, Reconstruct, or Construct New Constructional Improvements

Expand, repair, reconstruct, construct new aboveground constructional improvements, set up miscellaneous works or other facilities, without the consent of the leasing authority.

After obtaining a Consent Letter for the Land Use Rights, the new construction, expansion, or reconstruction of constructional improvements exceeds the original approved construction area, or the leased building lot area.

Expanded Scope of Utilization

Expanded use area of leased land, or cross-building on adjacent unleased national land.

Restrictions

on Use

Unauthorized transfer, sub-lease, or other use of all or part of the leased building lot to others.

The lessee transferred all or part of the building improvements on the ground to a third party without the consent of the leasing authority. (Note 1)

The utilization of the leased building lot, during investigation by the responsible authorities of target business, was found to be illegal or in violation of the law or use control regulations, and has not been corrected within the stipulated period.

Contract

Exchange

After the lessee has transferred the ownership of the aboveground constructional improvements, the lessee fails to apply for contract exchange for transfer of the lessee within the time limit specified in the lease agreement. (Note 1)

After the death of the original lessee, the inheritors fail to apply for contract exchange for succession, in accordance with the lease agreement.

Preferential Rentals, Penalties

Failure to pay rent (or installment of royalty on the lease by tender) and overdue penalties in accordance with the lease agreement.

Failure to notify the leasing authority of the cancellation of the preferential rentals for self-occupation residences after moving out of the household or changing to use for business use. (Note 1)

In the event of violation of the lease agreement, overdue payment (or non-payment) after being notified by the leasing authority for payment of the penalties.