1. All appeals by the Defendants are dismissed.

2. The costs of appeal are assessed against the Defendants.

Purport of claim and appeal

1.

1. The reasoning of the judgment of the court of first instance concerning this case is as follows: (a) the term “former Act on the Maintenance and Improvement of Urban Areas (amended by Act No. 12738, Jun. 4, 2015; hereinafter “former Act”)” shall be “former Act on the Maintenance and Improvement of Urban Areas (wholly amended by Act No. 14567, Feb. 8, 2017; hereinafter “former Act on the Maintenance and Improvement of Urban Areas”)” from March 12 through 13, 3 of the judgment of the court of first instance; and (b) the term “former Act on the Maintenance and Improvement of Urban Areas (wholly amended by Act No. 14567, Feb. 8, 2017; hereinafter “former Act on the Maintenance and Improvement of Urban Areas”) is identical to the part

2. Additional determination

A. As to the period of exercise of the right to demand sale, the Plaintiff’s summary of the Defendants’ assertion must be given the Defendants’ consent to the establishment of the association at the time several months elapsed since the authorization was granted. In addition, the Plaintiff exercised the right to demand sale at the time when six months elapsed since the establishment registration was completed, which is not effective after the lapse of the period of exercise of the right to demand sale (two months). According to Article 39 of the former Act and Article 48 of the Aggregate Buildings Act, where the Plaintiff becomes the other party to the establishment agreement, such as the owner of a building and its appurtenant land in a housing complex, it is necessary to give an opportunity to consider whether to consent to the establishment of the association for the protection of the right to demand sale. In such a case, the period of exercise of the right to demand sale (two months) should be calculated from the expiration date of the answer period of two months as stipulated in Article 48(2) of the Aggregate Buildings Act (see, e.g., Supreme Court Decision 2005Da579, May 29, 2007).