Practice Areas

Construction and Real Estate Advisory

2026.06.09

Construction and real estate advisory aims to prevent legal disputes and risks that may arise in the course of construction projects and real estate transactions in advance, and to support stable project and asset management.

1. Construction and Real Estate Advisory | Overview

Construction and real estate advisory checklist, checking the need for advisory

Construction and real estate advisory reviews the legal issues that may arise across construction and real estate projects on the basis of the relevant statutes, and provides tailored legal services from contract drafting to dispute response.

In the construction and real estate field, where complex regulations and interests are intertwined, professional legal advisory is crucial to project success and dispute prevention.

Relevant Statutes

Major Construction-Related Statutes	Major Real Estate-Related Statutes
Framework Act on the Construction Industry	Act on the Registration of Real Estate under Actual Titleholder's Name
Fair Transactions in Subcontracting Act	Commercial Building Lease Protection Act
Building Act	Housing Lease Protection Act
Act on Planning and Use of National Territory	Licensed Real Estate Agents Act
Housing Act	Registration of Real Estate Act
Regulations on the Establishment and Operation of Regional Housing Associations	Act on Acquisition of and Compensation for Land for Public Works Projects
Construction Technology Promotion Act	Act on Report on Real Estate Transactions

Necessity of Advisory Services

Construction and real estate transactions involve high amounts, diverse stakeholders, and the application of complex laws, so careful review is needed when concluding a contract.

Various legal issues also arise frequently, such as lease disputes, defect repairs, key money disputes, title trusts, and land expropriation and compensation issues.

By clarifying the contract terms through prior advice and checking risk factors at each stage of the project, unnecessary litigation and costs may be prevented.

Advisory Procedures

∙ Review of basic status and contracts
: Analysis of related documents such as construction contracts, real estate sales contracts, and lease agreements

∙ Review of statutes and precedents
: Identification of applicability and risks under the Framework Act on the Construction Industry, the National Land Planning Act, the Act on the Registration of Real Estate under Actual Titleholder's Name, contract law, and other statutes

∙ Diagnosis of issues and proposal of response measures
: Review of key points of dispute such as construction payment issues, title trusts, defect repairs, and lease disputes

∙ Support for drafting contracts and settlement agreements and for negotiation
: Support for drafting tailored documents to allocate risk and protect rights

∙ Response to subsequent disputes
: Support for legal procedures such as auctions, registration of ownership transfer, eviction lawsuits, and defect repair lawsuits

2. Construction and Real Estate Advisory | Construction Sector

Scope of work in the construction field of construction and real estate advisory

Within construction and real estate advisory, the construction field aims to prevent the legal risks that may arise throughout the entire construction project, or, when a dispute occurs, to respond promptly and in a favorable direction.

In particular, the Framework Act on the Construction Industry and the National Land Planning Act are directly connected to a construction operator's qualifications, construction procedures, and permits and approvals, and a violation may lead to an administrative disposition or even criminal punishment, so prior advice is crucial.

Disputes over Construction Payment and Contract Termination

In the course of construction work, nonpayment of fees, unfair reductions, and disputes over grounds for contract termination are frequent causes of disputes.

Depending on the legal validity of the construction contract, the conditions for termination, and whether supporting evidence has been secured, gains or losses of hundreds of millions of won may be at stake.

Advisory points

∙ Review of the standard for calculating construction payment and whether supporting evidence has been secured

∙ Review of the grounds for contract termination and the legality of the termination procedure

∙ Analysis of whether a subcontract is included and of joint liability risk

∙ Preparation of a response strategy for issues such as construction performance guarantee insurance and liquidated damages for delay

Defect Repair and Allocation of Liability

For defects arising after completion of construction, disputes over liability between the ordering party and the contractor often continue, and disputes over limitation periods or the scope of repairs are also frequent.

Advisory Points

∙ Review of the scope of defects, repair costs, and the liability period (warranty liability under the Civil Act)

∙ Support in securing evidence such as resident representative meeting records and appraisal materials

∙ Response to defect repair lawsuits and claims for damages

Examining defect repair lawsuits and collateral liability periods
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Framework Act on the Construction Industry and the National Land Planning Act

Violations of contractor registration requirements, violations of subcontracting restriction rules, and unqualified construction can also entail criminal liability, and licensing and permit matters are directly tied to assessing business viability.

Advisory Points

∙ Review of construction business registration requirements and subcontracting restriction provisions

∙ Determination of whether there is unqualified construction, name lending, or name borrowing

∙ Establishment of a licensing and permit strategy related to urban planning changes and use-zone designation

∙ Review of whether the National Land Planning Act is violated and of the penalty provisions

Examining construction industry registration and standards according to the Framework Act on the Construction Industry
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Regional Housing Associations, Redevelopment, and Reconstruction

Various disputes arise in matters such as the establishment and operation of associations, sale of units, withdrawal of members, and contribution charges.

In particular, whether the contribution share of a withdrawing member is refundable and questions of the liability of association officers require legal review.

Advisory points

∙ Legal review of association establishment authorization, operating procedures, and sale conditions

∙ Response to disputes over payment and refund of contribution shares

∙ Advisory on land expropriation, partition of co-owned property, and appraisal related to redevelopment and reconstruction

∙ Remedies such as a provisional injunction suspending the performance of duties by the association head

3. Construction and Real Estate Advisory | Real Estate Sector

Construction and real estate advisory support provided by Daeryun LLC's attorneys specializing in real estate

Within construction and real estate advisory, the real estate field addresses legal issues that may arise throughout the entire process of acquiring, holding, transferring, possessing, and developing real estate, with a focus on protecting asset value, preventing disputes, and promptly restoring rights.

In particular, matters such as title trust by contract, violations of the Real Estate Real Name Act, and disputes over key money and leases may lead not only to civil liability but also to criminal liability, so legal review from the early stage is crucial.

Title Trust by Contract and Violation of the Act on the Registration of Real Estate under Actual Titleholder's Name

A real estate transaction conducted through title trust is void as a violation of the Act on the Registration of Real Estate under Actual Titleholder's Name, and may be subject to criminal punishment and a penalty surcharge.

Level of Criminal Punishment

Act on the Registration of Real Estate under Actual Titleholder's Name, Article 7, paragraphs 1 and 2	Level of Punishment
Title Truster	Imprisonment for up to 5 years or a fine of up to 200 million won
Title Trustee	Imprisonment for up to 3 years or a fine of up to 100 million won

Advisory Points

∙ Determining whether title trust exists and identifying actual ownership

∙ Reviewing whether a lawful exception under the Real Name Act applies

∙ Responding to real name conversion procedures and penalty surcharge imposition

∙ Advising on termination of title trust and procedures for recovering ownership

Disputes over Real Estate Sales and Leases

Disputes frequently arise in practice, such as nonpayment of the purchase price, rescission of contracts, return of lease deposits, and refusal to renew contracts, and the issue of premium (key money) also becomes a major point of contention.

Advisory Points

∙ Determining whether to file a claim for return of the purchase price and whether the contract is void or may be rescinded

∙ Review and interpretation of the requirements for commercial and residential lease contracts

∙ Advice on claims for damages related to premium (key money) contracts

∙ Checking the applicability of the Commercial Building Lease Protection Act and the right to preferential reimbursement

Ownership and Possessory Rights

Disputes are common regarding the recovery of substantive rights, such as the transfer of real estate registration, claims for eviction, whether acquisitive prescription by possession has been established, and the release of mortgages and mortgages to secure a maximum amount.

Advisory Points

∙ Handling litigation for claims for registration of ownership transfer

∙ Support for real estate eviction lawsuits and execution procedures

∙ Analysis of the requirements and facts of acquisitive prescription of land by possession

∙ Claims for cancellation of mortgages and mortgages to secure a maximum amount and the cancellation registration procedure

Other Real Estate Legal Issues

Partition of co-owned property arising from joint ownership, disputes over grave site rights caused by unauthorized graves, and issues concerning the right of passage over surrounding land regarding the use of adjacent land also often lead to litigation.

Advisory Points

∙ Strategy for a partition of co-owned property lawsuit and review of the possibility of agreement

∙ Response to the establishment of grave site rights and demands for relocation

∙ Whether the right of passage over surrounding land is recognized and calculation of the usage fee

∙ Advice on defects in auction procedures and the raising of objections

4. Construction and Real Estate Advisory | Preparations

Required materials to prepare for construction and real estate advisory

To obtain practical assistance through construction and real estate advisory, sufficient preparation is needed.

Data and Purpose of Use

It is advisable to prepare the following materials thoroughly.

Category	Required Materials	Purpose of Use
Contract Documents	Construction contracts, real estate sales and lease contracts, and similar documents	Review of contract terms and conditions
Registration-Related Materials	Certified copy of the ownership transfer register, title trust-related documents	Confirmation of ownership status and review of real name registration
Construction-Related Materials	Records of construction payment and records of defect repairs	Analysis of payment and defect-related issues
Dispute-Related Materials	Litigation documents, mediation and arbitration-related materials	Assessment of dispute status and formulation of a response strategy

5. Construction and Real Estate Advisory | Checklist

Construction and real estate advisory, relevant statutes and the need for advisory

Construction and real estate advisory is recommended in particular in the following situations.

▷ When issues arise regarding payment of construction project funds and termination of a contract

▷ When there are suspected cases involving real estate title trusts and the Real Name Act

▷ When a legal response is needed for lease contract disputes or premium (key money) issues

▷ When a legal review is needed for land expropriation, compensation issues, or matters related to regional housing associations

▷ When issues arise in securing rights, such as transfer of real estate ownership or an eviction lawsuit

Support System of Construction and Real Estate Attorneys

This law firm includes attorneys specializing in construction and real estate who are registered with the Korean Bar Association, as well as a number of experienced attorneys with an average of more than 10 years of practice.

As a result, practical and systematic legal support can be provided for matters ranging from construction payment disputes, title trusts, lease disputes, land expropriation and compensation, to complex matters involving redevelopment and reconstruction.

If you require support across the entire process, from drafting contracts at the early stage of a project to dispute resolution and responding to litigation and administrative procedures, you may request assistance from an attorney specializing in construction and real estate.