[Real Estate AtoZ] Landlord Disappears Without Returning Deposit?… Now Tenant Registration Is OK

“I applied for a leasehold registration because I couldn't get my jeonse deposit back, but the landlord is avoiding the leasehold registration order. Time is just passing by, and my anxiety is growing.”

From now on, tenants will no longer face difficulties in setting up leasehold registration due to the landlord not receiving the leasehold registration order. This is because a measure to simplify the leasehold registration process will be implemented starting from the 19th of this month, as the number of tenants unable to recover their jeonse deposits has increased due to the recent reverse jeonse crisis and the spread of jeonse fraud.

What exactly is leasehold registration?

Leasehold registration is a process where, if a tenant fails to recover their jeonse or monthly rent deposit after the lease contract ends, they apply to the court to maintain their rights. By indicating on the registration that there is an unreturned deposit claim on the property, tenants can be recognized for their opposability and priority repayment rights even if they no longer occupy the residence.

In fact, the number of tenants seeking to set up leasehold registration has steadily increased. According to the Supreme Court’s Registry Information Plaza, there were 19,201 cases in the first half of this year. This exceeds the combined total of 4,231 cases in the first half and 7,807 cases in the second half of last year. The increase in leasehold registrations, which serve as a tenant’s last line of defense, indicates that more tenants are unable to recover their jeonse deposits on time.

The problem is that landlords exploit loopholes in the system to obstruct the leasehold registration. Even if a tenant obtains a leasehold registration order from the court, the landlord must receive the order for the registration to be completed. Therefore, if the landlord deliberately avoids service by disappearing or if the landlord’s address is unknown, the registration cannot be finalized. As a result, tenants had to remain in the expired leased property without moving out.

Leasehold registration possible without landlord notification.

The key point of the amendment effective from the 19th is that once the court issues a leasehold registration order, the registration can proceed without serving the landlord.

It is important to note that once leasehold registration is set, the landlord can suffer significant disadvantages. Even if the registration later expires, the fact that the leasehold was registered remains on the official registry. In other words, it officially records that the landlord failed to return the deposit to the tenant on time. This can make it difficult for the landlord to find new tenants later. From the landlord’s perspective, this creates an incentive to return the jeonse deposit promptly to avoid leasehold registration.

Tenants who have completed leasehold registration can continue living in the property until they receive their deposit. The landlord must return the full deposit to the tenant before they can cancel the leasehold registration. If the tenant vacates the property fulfilling their obligation to surrender possession, they can also claim delayed interest for losses incurred until the deposit is returned.