A Landlord Who "Returns Only Part of the Jeonse Deposit"... 3 Ways to Get the Remaining Balance Back

[Asia Economy Reporter Ryu Tae-min] “The landlord says they don’t have money and will only return part of the jeonse deposit now, promising to pay the rest later. Although I can move with just the partial deposit, I don’t know when the remaining amount will be returned. Is there a safe way to receive the rest of the deposit from the landlord?”

Many tenants face difficulties when landlords refuse to return the full jeonse deposit or return only part of it, citing lack of funds. If the landlord has not returned the entire deposit, various legal procedures exist, but the situation is more complicated when only part of the deposit has been returned.

Real estate attorney Eom Jeong-sook (Beopdo Comprehensive Law Office) said, “Many people are confused about whether they can file a lawsuit if the landlord has returned only part of the jeonse deposit,” adding, “To safely receive the remaining balance after receiving only part of the deposit, various legal procedures must be explored.” She further advised, “Even if only part of the deposit has been returned, you can recover the deposit through three methods: filing a lawsuit, establishing a mortgage, or notarization.”

First, filing a jeonse deposit return lawsuit is the most certain method. Even if the landlord has returned only part of the deposit, a lawsuit can proceed. A ‘jeonse deposit return lawsuit’ refers to a lawsuit filed by the tenant against the landlord who refuses to return the jeonse deposit. Attorney Eom explained, “Tenants often have the misconception that a jeonse deposit return lawsuit is only filed when the entire deposit is not returned. However, even if only part of the deposit is returned, legally the landlord is considered to have failed to fulfill the obligation to return the deposit, providing grounds to file a lawsuit.”

However, since a jeonse deposit return lawsuit can take several months until judgment and involves costs such as hiring a lawyer, tenants often hesitate to sue when only part of the deposit is unpaid. Attorney Eom advised, “If the unpaid deposit amount is not large, considering a mortgage or notarization is also a good option.” A mortgage refers to setting the landlord’s real estate as collateral, allowing the creditor to be repaid before other creditors in case of problems.

Attorney Eom emphasized, “Unlike a general mortgage, a mortgage right includes the right to apply for auction, so if the landlord does not return the deposit, the collateralized real estate can be auctioned off. Even if delay interest increases due to non-return or real estate prices change, there is no need to set the mortgage again.”

Notarization has the same effect as a court judgment and is advantageous in terms of time and cost compared to litigation. Attorney Eom said, “Notarization can be carried out simply by mutual agreement,” adding, “If even that is burdensome, it is good to keep evidence of the landlord’s promise through text messages, KakaoTalk messages, or recorded phone calls.”

Meanwhile, there is also a method using simultaneous performance instead of legal procedures. Simultaneous performance means fulfilling obligations at the same time; in housing lease contracts, the tenant must return the house to the landlord, and the landlord must return the jeonse deposit to the tenant. Attorney Eom said, “If the landlord has not returned part of the deposit, the tenant has the right to reside in the house until the deposit is returned,” but added, “If moving is necessary, maintaining the resident registration of some family members at the original residence preserves both the tenant’s priority right and the right to claim repayment for both the new and old houses, so this method is worth considering.”