Chapter 4 Management of the Lease Agreement
Article 32
The Lessor may, depending on the amount of monthly rent payable by the lessee, specify in the lease agreement that the rent shall be paid on a monthly or multi-month basis.
In the event that the aforementioned rent is payment in kind, the lessee shall be notified of the payment after the calculation of the total amount of monetary substitution conversion, based on the conversion basis.
Article 33
If the lessee fails to pay the rent in accordance with the agreed time limit, the lessee shall be subject to additional overdue penalties.
The basis for the calculation of overdue penalties shall be stipulated by the administration authority.
Article 34
The Lessor shall adhere to the following procedures to demand rent payment from a lessee with cumulative unpaid rent:
(1) Demand the payment to be paid by the deadline.
(2) File a motion with the court for the issuance of a payment order.
(3) File a motion with the court requesting compulsory execution.
Article 35
When two or more persons jointly lease non-public use real estate, the lessees shall be jointly and severally liable for the matters specified in the lease agreement.
Article 36
The lessee shall use the leased property in accordance with the agreed purpose, and shall not sublease it for others' use. However, if one of the following applies, the lessee may, with the consent of the Lessor, sublease all or part of the leased property to others:
(1) Non-public use land and constructional improvements that were leased together by tendering to Subleasing Businesses in accordance with the provisions of Paragraph 2, Article 9.
(2) Cultural heritage that was leased by tendering in accordance with the provisions of Article 9-1.
The lessee and the sub-lessee of the sublease in accordance with the Subparagraph 2 of the preceding proviso shall be jointly and severally liable for the matters stipulated in the lease agreement between the lessor and the lessee, and shall undertake or agree in writing to do so.
If the lessee violates regulations for the sublease in Paragraph 1, the Lessor shall terminate the lease, unless otherwise provided by law or regulation.
Article 37
The lessee shall not construct, refurbish, reconstruct, or construct new aboveground constructional improvements, miscellaneous work items, or other facilities on the ground, unless the lessee has obtained a Consent Letter for the Land Use Rights from the Lessor.
In the event of violation of the provisions in the preceding Paragraph, the Lessor shall terminate the lease if the lease is subject to a lease by tender. In the case of a direct lease, the Lessor shall notify the lessee to pay a penalty two times the amount of the monthly rent within one-month time. If the lessee fails to pay the penalty within the time limit, the Lessor shall terminate the lease.
Article 38
If the lessee does not need to continue the utilization of the leased property during the term of the lease, the lessee shall apply for termination of the lease and return the leased property.
Article 39
If the lessee transfers his/her lease rights, or changes the name of the lessee in accordance with Paragraph 1, Article 42 of this Act, unless otherwise provided by law, he/she must obtain consent from the Lessor prior to the transfer or change.
Violations of the provisions in the preceding Paragraph shall be handled in the following manner:
(1) The Lessor of the lease agreements for afforestation land shall notify the lessee to apply for renewal of the lease in accordance with the provisions of Article 42, and if the lessee fails to comply accordingly, the lease shall be terminated.
(2) The lease of constructional improvements or constructional improvements with building lots shall be terminated.
(3) For lease agreements other than the two preceding Subparagraphs, unless otherwise provided by law, the Lessor shall notify the lessee to pay a penalty two times the amount of the monthly rent within one-month time. The lessee may renew the contract and continue the lease with his/her successor. If the lessee fails to comply accordingly, the lease shall be terminated.
For the rearing places that qualify for the 37.5% Arable Rent Reduction Act, the lease may not be transferred, and the name of the lessee may not be changed, unless transferring due to old age and frailty, household separation, or distribution of property rights, the ownership of the lease contract to the lineal blood descendants, or dependents of the common household domicile, who jointly inhabited at the time of the original agreement. However, with the consent of the Lessor, the lease may be renewed and continued by lineal blood descendants currently residing. It is stipulated that the farmland suitable for aquaculture stated in the Enforcement Rules of the Agriculture Development Act shall not be subject to this restriction.
Article 40
In accordance with Paragraph 1, Article 42 of this Act, the lessee may transfer his/her lease rights or change the name of the lessee to the following parties if the leasehold is granted in accordance with Subparagraph 1 or Subparagraph 2 of the same Paragraph:
(1) For the lease of building lots, the lessee shall be the owner of the non-national constructional improvements on the land after the transfer.
(2) For the lease of land for solar photovoltaic power generation equipment users, in accordance with Article 8-1, the lessee shall be the owner of the solar photovoltaic power generation equipment or the transferee user.
(3) For the lease of cultural heritage or other real estate, in accordance with Article 9-1 or other real estate, the lessee shall be the transferee user.
Article 41
If a direct lease is granted in accordance with Subparagraph 3, Paragraph 1, Article 42 of this Act, the lessee may transfer his/her lease rights to a person who may also sell in accordance with this Act or other laws.
Article 42
When the lessee transfers his/her lease rights or changes the name of the lessee in accordance with Articles from Article 39 to the preceding Article, the transferee shall fulfill the obligations under the original lease agreement. Unless otherwise provided by law, the lessee shall apply to the Lessor for renewal of the lease in conjunction with the transferee within one month from the date of the transfer or the change of the lessee's name.
Violations of the provisions in the preceding Paragraph shall be handled in the following manner:
(1) The Lessor of the lease agreements for afforestation land shall notify the lessee to apply for renewal of the lease, in conjunction with the transferee, within one-months’ time. If the lessee fails to comply accordingly, the lease shall be terminated.
(2) For leases other than the preceding Paragraph, unless otherwise provided by law, the Lessor shall notify the lessee to pay the overdue penalties within one-months’ time, and apply for the lease renewal in conjunction with the transferee. If the lessee fails to comply accordingly, the lease shall be terminated.
The basis for the calculation of the overdue penalties stated in the preceding Paragraph shall be an additional one-month rent for every month overdue for the transfer of lease rights, or change of the name of the lessee, up to a maximum of five months' rent.
Article 43
If the lessee dies during the period when the leasehold relation is still in force, the successor shall apply for a succession renewal of lease within six months from the date of commencement of the succession. However, if the successor cannot be held responsible or approved by the responsible authorities, he or she may apply for an extension of the period.
Violation of the provisions in the preceding Paragraph shall be handled in the following manner:
(1) The Lessor shall notify the successor to apply for succession renewal of lease, within one-months’ time, for the lease agreements for afforestation land.
(2) For leases other than the preceding Paragraph, unless otherwise provided by law, the Lessor shall notify the inheritors to pay the overdue penalties, within one-months’ time, and all inheritors shall apply for the succession renewal of lease in conjunction. If the inheritors fail to comply accordingly, the lease shall be terminated.
If not all of the inheritors are able to apply for the succession renewal of lease in conjunction, unless otherwise provided by law, some of the inheritors may make the application in the name of all of the inheritors.
The basis for the calculation of the overdue penalties stated in Subparagraph 2, Paragraph 2 shall be an additional one-months’ rent of the month the succession commences for every month overdue, up to a maximum of five months' rent.
Article 44
When the lease is terminated or extinguished, the lessee shall not demand any compensation for the removal and vacating of the non-national property, and the return of the leased property, unless otherwise provided by law.
Article 45
If the lessee applies for a lease and the supporting documents attached are discrepant, the Lessor shall revoke or terminate the lease, and the rent paid and the compensation payment for the occupying period shall not be refunded.