Notification of Intent Sent by Certified Mail
Psychological Pressure, Possibility of Quick Resolution
However, No Legal Enforcement Power
"If Unresolved, Proceed with Jeonse Deposit Refund Lawsuit"
The number of tenants who fail to receive their jeonse deposit back on time is rapidly increasing. When such a situation actually occurs, tenants become even more confused because they do not know what procedures to follow immediately. Experts advise that tenants should first send a certified letter, and if there is no sign of resolution even after that, they should prepare for a jeonse deposit refund lawsuit.
A certified letter is a system that proves through a third party and a public institution, the post office, who sent a document containing certain intentions or claims to whom. By conveying a firm intention, it exerts psychological pressure on the other party.
There is no special format required; it is sufficient to write the main points concisely and clearly. In cases related to non-refund of the jeonse deposit, the tenant can write a letter notifying the landlord of contract termination and requesting the return of the jeonse deposit.
When three copies of the document are prepared and submitted to the post office, the post office stamps the letter with a seal stating "Certified mail submission confirmed," keeps one copy, sends one copy to the other party, and returns one copy to the submitter (sender). The certified letter must be sent by registered mail.
The advantages of a certified letter include ▲very low cost compared to litigation procedures ▲faster problem resolution compared to eviction lawsuits ▲legally clear expression and proof of intention compared to phone calls, texts, or KakaoTalk messages.
Real estate specialist lawyer Eom Jeong-sook said, "The lawsuit to recover the jeonse deposit is a jeonse deposit refund lawsuit, but in practice, there are cases where the deposit is recovered just by sending a certified letter," and advised, "It is important to first notify the landlord through a certified letter that the contract will not be renewed."
However, a certified letter does not have legal effect. The recipient of the certified letter is not obligated to respond, and there is a possibility of return due to the recipient’s absence. Lawyer Eom said, "In practice, a certified letter has the advantage of resolving jeonse deposit disputes quickly and at low cost, but it does not have legal enforceability."
If the jeonse deposit is not returned even after sending a certified letter, legally binding procedures must be initiated. Lawyer Eom said, "If you do not receive the deposit back through a certified letter, you should prepare for a jeonse deposit refund lawsuit."
A jeonse deposit refund lawsuit refers to a lawsuit filed by a tenant against a landlord who refuses to return the jeonse deposit. According to the "2022 Jeonse Deposit Statistics" from the Jeonse Deposit Refund Lawsuit Center, which provides specialized legal consultations for jeonse deposit lawsuits, the average litigation period is about four months.
The advantages of a jeonse deposit refund lawsuit include ▲enforcement through an execution order against the landlord if a favorable judgment is made ▲psychological pressure on the landlord simply by filing the lawsuit ▲possibility of resolving the issue from a favorable position during settlement ▲the ability to impose litigation costs on the losing party (landlord) under Article 98 of the Civil Procedure Act.
However, the disadvantages include ▲higher costs such as attorney fees and court fees compared to a certified letter ▲longer time to resolve the issue compared to a certified letter ▲possibility of an appeal process if the other party disputes the judgment.
Meanwhile, the amount of incidents where landlords fail to return the jeonse deposit to tenants after the expiration of the jeonse contract reached a record high last year on an annual basis. According to the Housing and Urban Guarantee Corporation (HUG), the amount of jeonse deposit refund guarantee incidents last year was recorded at 579 billion KRW. The number of cases was 2,799.
The jeonse deposit refund guarantee insurance is a system where HUG pays the deposit to the subscriber (tenant) on behalf of the landlord who fails to return the jeonse deposit after the contract period expires (subrogation payment), and later exercises the right of recourse to claim the amount from the landlord.
The jeonse deposit refund guarantee insurance product was first launched in September 2013 and is currently handled by public guarantee institutions such as HUG and the Korea Housing Finance Corporation (HF), as well as the private guarantee institution SGI Seoul Guarantee.
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