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Leasehold Registration Order System

Concept of leasehold registration order system

- The leasehold registration order system allows a lessee to freely move out of a leased house with maintaining his/her opposing power and preferential repayment right once he/she completes the registration following the court's order of execution.

Application for Leasehold Registration Order

Requirements for application

- ① If no deposit is refunded② after the termination of a lease, the lessee may file an application for a leasehold registration order with the district court, the branch of the district court, or the Si/Gun court having jurisdiction over the location of the leased house (Article 3-3 (1) of the Housing Lease Protection Act).

· The lessee may file an application for a leasehold registration order after the lease is terminated. Thus, the lessee may file an application for a leasehold registration order where the lease is terminated following a notice of rescission or rescinded by agreement as well as where the lease is terminated by the expiration of the contract period.

Procedure of application

- Any lessee who intends to file an application for a leasehold registration order shall fill out an application including the following information, put his/her name and seal, or sign it, and then submit the application with the relevant documents to the district court, the branch of the district court, or the Si/Gun court having jurisdiction over the location of the leased house (Article 3-3 (1) of the Housing Lease Protection Act):

· Marking of the case;

· The lessee and lessor's names and addresses, and the lessee's resident registration number (if the lessee or the lessor is a corporation or a group other than a corporation, the name of such corporation or group, the name of its representative, the corporate registration number, and the location of the main office and business premises);

· If an agent files an application, his/her name and address;

· Indication of the house or building which is the object of the lease (where the object of the lease is a part of the house or building, the drawing indicating such part shall be attached.);

· The security deposit for lease which has not been returned, and rent (in cases of a contract for unregistered lease on a deposit basis, security money for lease on a deposit basis);

· Purport and reasons for the application.

※ Documents to be submitted when filing an application for a leasehold registration order (Article 3 of the Regulation on Procedure of Leasehold Registration Order)

· A certificate of registered matters of the house or building registered as a possession of the lessor;

· A document proving that a house or a building not owned by the lessor can be registered for ownership preservation immediately in the lessor's own name;

· A written lease contract;

· In cases of a lessee who has obtained the opposing power at the time of application, a document stating the occupation date of the leased house and the completion date of resident registration;

· In cases of a lessee who has obtained the preferential repayment right at the time of application, a document stating the occupation date of the leased house and the completion date of resident registration, and a lease contract written as a notarial document or stamped with the fixed date;

· Where the registered purpose of the subject matter of the lease is not a residential facility, a document proving that the leased house has been used for residence from the time of the lease contract concluded to the present.

- The lessee may request the lessor to reimburse expenses incurred in filing an application for a leasehold registration order and completing the lease registration (Article 3-3 (8) of the Housing Lease Protection Act).

Effect of Registration of Leasehold

Maintenance of opposing power and preferential repayment right

- Where the lessee has already obtained the opposing power or the preferential repayment right before the registration of leasehold, the opposing power or the preferential repayment right shall be maintained as it is, and even if he/she has lost the requirements for opposing power after the registration of leasehold, the opposing power or the preferential repayment right which he/she has already obtained shall not be lost (the proviso to Article 3-3 (5) of the Housing Lease Protection Act).

Acquisition of opposing power and preferential repayment right

- If the lessee has not obtained the opposing power or the preferential repayment right before a leasehold registration order, he/she may obtain the opposing power and the preferential repayment right by completing the registration of leasehold (the main body of Article 3-3 (5) of the Housing Lease Protection Act).

Small deposit excluded from preferential repayment right of top priority

- The lessee who has leased a house after its leasehold registration had been completed shall not have the right to receive the preferential repayment of a small deposit (Article 3-3 (6) of the Housing Lease Protection Act).

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