[Ryu Taemin's Real Estate A to Z] What Is the Difference Between Fixed Date Registration and Jeonse Right Registration?

[Asia Economy Reporter Ryu Tae-min] Recently, the number of tenants who fail to receive their jeonse deposit back from landlords on time has surged. This is because the housing prices have dropped by hundreds of millions of won this year, leading to the spread of so-called ‘empty-can jeonse’ (Kkangtong Jeonse). In August alone, the amount of jeonse deposits not returned exceeded 100 billion won for the first time ever, increasing tenants' interest in ways to protect their jeonse deposits.

According to the Housing and Urban Guarantee Corporation (HUG) on the 21st, the amount of jeonse deposit return guarantee insurance claims last month was 109.8 billion won, with 523 cases reported. This marks the highest figures since the product was launched in September 2013. From January to September this year, the cumulative claim amount reached 646.6 billion won with 3,050 cases, already surpassing last year's total cumulative figures (579 billion won, 2,799 cases).

Besides the jeonse deposit guarantee insurance, representative methods to protect valuable jeonse deposits include obtaining a fixed date (hwakjeong ilja) and registering a jeonse right (jeonse-gwon seoljeong deunggi). First, a fixed date is the date entered on the lease contract. When this date is verified by the court or local community office and stamped on the lease contract, it is legally recognized.

Registering a jeonse right means recording the fact that you are a jeonse tenant in the official registry certificate (deunggisahang jeonbu jeungmyeongseo). Through this, tenants receive priority repayment of their jeonse deposit over subordinate rights holders and other creditors concerning the entire real estate.

The biggest difference between a fixed date and registering a jeonse right lies in whether the landlord’s consent is required and the cost involved. Obtaining a fixed date does not require the landlord’s consent, whereas registering a jeonse right absolutely requires the landlord’s consent. Regarding costs, a fixed date requires a fee of 600 won, while registering a jeonse right generally involves paying tens of thousands of won, including legal representative fees, depending on the deposit amount. Due to these differences, the relatively simple and inexpensive fixed date is usually preferred.

However, if the jeonse deposit is not properly returned, registering a jeonse right may be more advantageous. Tenants with a fixed date must separately file a lawsuit against the landlord to claim the return of the deposit and win the case before proceeding with enforcement procedures. If a mortgage right (geunjeodang), which is a cancellation standard right, is registered, tenants may not be able to recover 100% of their deposit. On the other hand, tenants who have registered a jeonse right can directly apply for auction without a separate court ruling.

The compensation for the deposit during auction also differs. Tenants with a fixed date can be compensated from the combined value of the building and land, but those who only registered a jeonse right can be compensated based on the building’s value.

The necessity of moving-in registration (jeonip singo) also differs. A fixed date can be obtained after moving in and registering the move, but registering a jeonse right can be applied for even before moving or registering the move. Additionally, a fixed date takes effect from the day after the application date, whereas a jeonse right takes effect from the day of application, which is another difference.