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"Lease Ending Soon but Landlord Unreachable: How to Handle Deposit Refunds"

Advance Notice of Lease Termination via Certified Mail or Public Delivery
If Immediate Moving Is Necessary, Apply for 'Imchagwondeunggi Myeongryeong'
Consider 'Jigeum Myeongryeong' When Litigation Costs and Time Are Burdensome

"Lease Ending Soon but Landlord Unreachable: How to Handle Deposit Refunds" Apartment Complexes in Seoul City


"My jeonse lease is about to expire soon, but the landlord is not responding. I need to get my deposit back before I can move out. What should I do?"


According to a real estate specialized law firm on the 1st, inquiries about lawsuits for the return of jeonse deposits have been increasing in the outskirts of the Seoul metropolitan area, where gap investment has been rampant this year. As warnings about falling house prices grow louder, concerns about landlords absconding with deposits amid a 'Kkangtong Jeonse' crisis are also rising.


What should tenants do to get their deposits back on time and minimize damage? Experts advise that if the landlord continuously avoids inquiries about deposit returns and refuses to communicate, tenants should notify the termination of the lease contract through legal means.


Real estate attorney Eom Jeong-sook said, "It is important to attempt legal communication methods with the intention of filing a jeonse deposit return lawsuit and to keep records." Methods of notifying termination include ▲certified mail ▲public notice of declaration ▲visiting in person ▲text messages ▲KakaoTalk ▲email, among others.


For terminating the lease contract, it is crucial that the termination notice reaches the landlord at least two months before the jeonse contract expires. If the sent certified mail is returned, tenants can go to the community service center with the return envelope and their ID to obtain the landlord’s resident registration abstract. Then, they can resend the certified mail to the address on the abstract. If the certified mail continues to be returned, tenants can apply to the court for public notice of declaration.


Another method is to visit the landlord in person and verbally state "I am terminating the lease contract" while recording the conversation. Additionally, sending termination notices via text message, KakaoTalk, or email and checking whether the landlord has confirmed receipt is recommended.


If the tenant has conveyed the intention to get the deposit back through various termination notice methods but the landlord still refuses to pay, the tenant can respond by filing a jeonse deposit return lawsuit. In this case, the six types of termination notices serve as important evidence in court.


Attorney Eom advised, "It is safer to choose the method that is easiest to prove in court first," and recommended contacting in the order of certified mail - public notice of declaration - verbal recording - electronic messages.


If the tenant needs to move out first, it is advisable to apply for an 'Order for Registration of Leasehold Rights' (Imchakwon Deunggi Myeongryeong). This order maintains the tenant’s status even after moving out. Even if other creditors auction off the landlord’s property, the tenant is recognized as a prior claimant and can recover the deposit from the auction proceeds.


◆If lawsuits are burdensome, consider 'Payment Order' = Lawsuits involve significant costs and time, which can be a considerable burden for tenants. Some landlords exploit this reality. In such cases, tenants can use the 'Payment Order system.'


A payment order is a special litigation procedure where a decision is made based solely on the tenant’s application. It is also called a demand procedure. The court fees and delivery charges are only one-tenth of those for a lawsuit. Article 462 of the Civil Procedure Act states, "The court may issue a payment order upon the creditor’s (tenant’s) application."


However, the conditions to receive a payment order are strict. The landlord must receive the mail sent by the court and must not raise an objection within two weeks. If the landlord does not receive the payment order mail from the court, no decision will be issued. Even if the landlord receives the mail, reviews the content, and raises an objection to the court, the same applies. In this case, the cost, which was one-tenth, increases to the original lawsuit cost.


Attorney Eom said, "In practice, negotiations are attempted before filing a lawsuit when the deposit is not returned," and added, "Sending a certified mail for deposit return under a lawyer’s name can psychologically pressure the landlord, sometimes resulting in immediate deposit repayment."




© The Asia Business Daily(www.asiae.co.kr). All rights reserved.


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