[Real Estate AtoZ] What If the Existing Tenant Does Not Move Out After Lease Expiration?

[Asia Economy Reporter Ryu Tae-min] "It has been almost a month since the lease contract ended and the tenant moved out, but the previous tenant is refusing to register their move to the new residence. It is difficult to contact them properly to urge them, and because of this, people who come to view the house feel uneasy and are reluctant to sign a contract, making it hard to find a new tenant."

There are often cases where landlords struggle because the previous tenant continues to maintain their resident registration even after the contract period has ended. If the former tenant who has moved out remains registered for a long time, it can cause disadvantages for new tenants, deepening landlords' concerns.

According to the Resident Registration Act, anyone moving to a new residence must register their move within 14 days after moving. If the move-in registration is not completed within 14 days without a valid reason, a fine of up to 50,000 KRW may be imposed. If the former tenant continues to maintain their resident registration after 14 days, the new tenant may suffer disadvantages.

First, difficulties may arise when applying for a mortgage loan. During mortgage loan screening, financial institutions review the registered residents, and the more registered residents there are, the more tenants are assumed to be present. If the former tenant who has moved out remains registered, the new tenant’s loan limit may be reduced or, depending on the situation, loan approval may be difficult.

The tenant’s rights are also threatened. According to the Housing Lease Protection Act, tenants who complete the move-in registration and fixed-date procedures are guaranteed priority repayment rights. If the previous tenant’s resident registration remains, the new tenant’s move-in registration may not be properly completed, resulting in the loss of priority repayment rights. Even if the new tenant’s move-in registration is completed, if multiple tenants are registered at the same address, full protection of their rights may not be guaranteed, causing prospective new tenants to hesitate to sign contracts.

If the previous tenant continues not to deregister their move or cannot be properly contacted, a ‘residence unknown registration’ can be applied for. This is a system similar to the resident registration cancellation system that operated until 2009, which forcibly removes the resident registration of those registered at a specific residence without legitimate rights. Applying for residence unknown registration takes about three weeks, including verification of actual residence, public notice procedures, and the official residence unknown registration action.

Meanwhile, if confirmed as a residence unknown registrant, a fine of 10,000 to 100,000 KRW may be imposed depending on the period until re-registration. In addition, once registered as residence unknown, health insurance qualifications are lost because insurance premium notices cannot be issued. Also, necessary documents such as resident registration certificates, transcripts, and seal certificates cannot be issued.