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Legal Issues Regarding the Application and Effect of Officially Announced Price of Representative Land According to 「Act on the Public Announcement of Real Estate Values」

  • Public Land Law Review
  • Abbr : KPLLR
  • 2019, 86(), pp.33-60
  • Publisher : Korean Public Land Law Association
  • Research Area : Social Science > Law
  • Received : April 30, 2019
  • Accepted : May 16, 2019
  • Published : May 31, 2019

Myung-Ho， BAE 1

1(주) 제일감정평가법인

Accredited

ABSTRACT

As of January 19, 2016 when 「Act on the Public Announcement of Real Estate Values」 was entirely amended through the establishment and amendment of the so-called three laws for Advancement of Real Estate Appraisal, the rules and regulations related to the announcement of real estate price were also amended in full scale, including the revision of the article 8, “The Application of Officially Announced Price of Representative Land”. Even though the article 8 of the current law was introduced in the amendment of 「National Land Use and Management Act」 in 1983, it has been used for the purpose of expropriation, use compensation of land or specific calculation for acquisition and sale of national and public lands by entities of specific calculations, such that it just serves as an applicable provisions by the Constitutional Court and authorities concerned to apply officially announced price of representative land announced and produced by the Minister of Land, Infrastructure, and Transport. However, interpreting the article 8 in this way is against literal interpretation, and rather it can be understood as unconstitutional because it infringes the property rights of citizens contradictory to the intent of the appraisal system which tries to protect the property rights of citizens. Since the “Direct Calculation by the governmental entities” has been implemented in 1983, it is a core regulation of this act which has about 34 years of history. But it is a no longer enforced, or ineffective regulation in reality. In terms of comparative law, 「Public Notice of Land Prices Act」 of Japan does not have a regulation by which the governmental entities perform direct calculations based on officially announced price of representative land. According to the provisos to the article 8 of the act, the governmental entities can apply a new price by adjusting addition and subtraction when the governmental entities think it is needed without applying the land price calculated directly by the governmental entities or the land price calculated on the basis of appraisal price. Therefore, the regulation on the direct calculation of land price by the governmental entities has no effect as a legal norm. Just as appraisers appraise according to relevant regulations, the method of calculating the land price directly by the governmental entities based on officially announced price of representative land using the Land Price Index Table is the same as the calculation by individual officially announced prices. The Constitutional Court already holds negative stance against the individual officially announced price in such precedents as the decision of constitutional discordance related to excessively increased valuable land tax. Additionally, the governmental entities including non-expert government employees do not apply the adjustment of addition or subtraction to the price for convenience's sake in public administration practice even when the adjustment of addition or subtraction is needed for the land price calculated by appraisers under uncertainty because there aren’t any specific standards or manuals in the act or lower statutes. Since the article 8 and the article 9 of the act, the application and effect of officially announced price of representative land are the core provisions of this act, they cannot be irrelevant to the issues regarding inspection & assessment of officially announced price of representative land in the article 3 of 「APAREV」 and public notice. As for ‘de lege ferenda’, this study suggests a legislative task that Inspection & Assessment and Inspection & Calculation should be regulated as a unified form of appraisal. Legislators should fulfill their obligations to improve the laws to become more constitutional through amendment of laws suggested by ‘de lege ferenda’.

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