2018.10.11
Luke Hung
The Ministry of the Interior issued the Tai-Nei-Ying-1070816473 Circular of October 11, 2018 (hereinafter, the “Circular”) to interpret the definition of “unwilling” to participate in a joint construction agreement under Article 25-1 of the Urban Renewal Statute (hereinafter, the “Statute”).
Article 25-1 of the Statute is summarized as follows. When using the method of joint construction agreement to carry out urban renewal business, if the implementation is not agreed by all the owners of the lands and legal buildings under Article 25-1 of the Statute but the agreement covering over 80% of private land area and private floor area of legal buildings is reached, joint construction agreement can be carried out with respect to the portions for which the joint construction agreement is reached. For owners of lands and legal buildings who are “unwilling” to participate in joint construction agreement, the rights transformation can be applied. Otherwise, implementers can also try to negotiate with owners and purchase the lands or buildings by themselves. If they cannot reach an agreement, the implementer may apply to the competent authorities in municipalities under the direct jurisdiction of the Executive Yuan or in county (city) governments for expropriation before the lands or buildings are sold to the implementer.
According to the Circular, for owners of land and legal buildings who are “unwilling” to participate in a joint construction agreement, and who are subject to the requirement “…the rights transformation can be applied. Otherwise, implementers can also try to negotiate with owners and purchase the lands or buildings by themselves. If they cannot reach an agreement, the implementer may apply to the competent authorities in municipalities under the direct jurisdiction of the Executive Yuan or in county (city) governments for expropriation before the lands or buildings are sold to the implementer,” the legal effect of the above provision on their rights and interests is profound and tremendous. If the legal provision is interpreted literally, those who are “unwilling” in the provision should mean those who are not willing to reach the joint construction agreement after their true intent is explored. As for circumstances of no inclusion into the percentage calculation or incomplete inheritance after the death of the owners under Article 12 of the Statute, it shall not be presumed that such owners are unwilling to reach a joint construction agreement.