Securement of Execution Title
Securement of execution title
- Where a lessor does not return the deposit even after the term of the lease has expired, the lessee may collect the deposit by filing an application for auction of the leased house based on the final and conclusive judgment on the lawsuit demanding the repayment of deposit or execution title corresponding thereto (Article 3-2 (1) of the Housing Lease Protection Act).
※ The term "execution title" means a notarial document that indicates the existence and scope of the right of claim to be realized by the compulsory power of the State and has been granted an executive force.
Preparations before Securing Execution Title
Sending a content-certified mail
- Where the lessor does not return the deposit even after the lease has expired, the lessee may urge the lessor to repay the deposit by sending him/her a content-certified mail stating the fact of a lease contract, the amount of the deposit to be returned at the time of termination of the lease, etc.
Request for provisional seizure
- It is advised that a lessee requests a provisional seizure of the properties of the lessor before filing a lawsuit demanding the repayment of deposit.
※ Provisional seizure is a procedure to preserve the current status by attaching the properties of the debtor in advance which are general security and to preserve compulsory execution for the future by prohibiting the current status from changing, where it is impossible or difficult to execute the compulsory execution for the future if money or a claim convertible into money is left as it is (Article 276 (1) of the Civil Execution Act).
Request for Payment Order
Concept of payment order
- A payment order is a trial to order a debtor to pay without interrogating him/her where a creditor makes an ex parte request for a claim aiming at the payment of a specific amount of money or other fungibles or securities (Article 462 of the Civil Procedure Act).
Request for payment order
- Any lessee who intends to make a request for a payment order shall fill out an application for a payment order including the following information and file it with the court having the jurisdiction over the address of the lessor (Articles 463, 464 and 468 of the Civil Procedure Act):
· Names of the lessor and the lessee;
· Address and contact required for sending an authentic copy of the payment order;
· The amount claimed;
· Purport and causes for the claim.
Effect of payment order
- When no objection has been raised by the lessor against a payment order, or an objection has been withdrawn, or a ruling of rejection on an illegal objection has become final and conclusive, the said payment order shall take the same effect as a final and conclusive judgment (Article 474 of the Civil Procedure Act).
Application for Civil Conciliation
Concept of the civil conciliation system
- In the civil conciliation system, a conciliation judge, standing conciliation committee member or the conciliation committee suggests a proposal of conciliation in accordance with the conciliation procedure, instead of making a ruling, after hearing the arguments of the parties to a dispute and taking various circumstances into consideration, and appropriately, fairly, speedily and efficiently resolve the dispute while respecting the parties' efforts for independent, voluntary dispute resolution (Article 1 of the Judicial Conciliation of Civil Disputes Act).
Procedure of civil conciliation
① Submission of an application for conciliation
- A lessee shall fill out an application for civil conciliation and file it with the court having the jurisdiction over the address of the lessor. An application for conciliation may be filed orally as well. In cases of an oral application, an applicant shall make a statement in the presence of a court official of Grade IV, etc. (Articles 3 and 5 (1) and (2) of the Judicial Conciliation of Civil Disputes Act)
· Information of the parties to a dispute and their agents, the purport of the application and the details of the dispute shall be clearly written in an application for conciliation. Where there is any evidentiary document, it shall be submitted at the time of the application. In such cases, its copies shall be submitted as many as the number of respondents (Article 2 of the Regulation on Judicial Conciliation of Civil Disputes).
② Appearance for a hearing for conciliation (Article 15 (1) of the Judicial Conciliation of Civil Disputes Act).
③ Deliberation on conciliation (Article 8 of the Regulation on Judicial Conciliation of Civil Disputes).
④ Completion of conciliation (Article 28 of the Judicial Conciliation of Civil Disputes Act).
⑤ Where agreement has not been made or where the terms of agreement reached by the parties are unreasonable, decision in lieu of conciliation (Article 30 of the Judicial Conciliation of Civil Disputes Act).
⑥ Rulings not to be proceeded with conciliation (Article 26 (1) of the Judicial Conciliation of Civil Disputes Act).
⑦ If an agreement fails to be reached between the parties or if it is deemed that details of agreement are inappropriate, failure of conciliation (Article 27 of the Judicial Conciliation of Civil Disputes Act).
⑧ Shifting to civil procedure
- Where there is a ruling not to proceed with conciliation even if an applicant has filed an application for conciliation, where agreement on conciliation fails to be reached, and where an objection is filed against the decision in lieu of conciliation, a suit shall be regarded to have been filed at the time an application for conciliation is filed and the case shall be automatically deliberated in the legal proceedings even though the party concerned has not filed an application (Article 36 (1) of the Judicial Conciliation of Civil Disputes Act).
Institution of Trial of Small Claims
Concept of trial of small claims
- A trial of small claims deals with small claims aiming at the payment of a specified amount of money or other fungibles or securities not exceeding 30 million won rapidly by using simple procedures (Articles 1 and 2 of the Trial of Small Claims Act and Article 1-2 of the Regulation on Trial of Small Claims).
Timing of decision on small claims
- A decision on whether a case is deemed a small claim or not shall be based on the time when the lawsuit has been filed (Supreme Court Decision, May 27, 1986, 86 Da 137 and 86 Da 138).
Authentication of Promissory Note
Authentication of promissory note issued by the lessor
- Where a lessor issues a lessee a promissory note for repayment of the security deposit for lease, it is safe for the lessee to have the promissory note notarized. A notarized promissory note which is legally deemed a public and competent evidence prevents a dispute between the parties in advance.
Procedure of authentication
- The lessee and the lessor shall visit an authentication agency together such as joint notarization and law offices and law firms handling notarial affairs in order to have a promissory note notarized. In areas where there is no authentication agency, they may have a promissory note notarized at a district public prosecutor's branch office (Article 8 of the Notary Public Act).
· Where one of the lessor or the lessee intends to go through the authentication procedure, he/she shall bring his/her identification and seal and the other party's power of delegation and certificate of personal seal impression.
- A notarial document stating the intention to recognize and accept the compulsory execution shall be attached to a notarized promissory note (Article 56-2 (1) of the Notary Public Act).
Effect of authentication
- Where a lessor does not pay money even after the due date of payment of the promissory note has passed or does not keep his/her promise, etc., the lessee may request a compulsory auction by being issued an execution clause from an authentication agency that has prepared a notarial document.
Institution of Lawsuit Demanding Repayment of Deposit
Lawsuit demanding the repayment of deposit
- Where a lessor does not return the deposit even after the term of the lease has expired, the lessee may collect the deposit by filing an application for auction of the leased house based on the final and conclusive judgment on the lawsuit demanding the repayment of deposit (Article 3-2 (1) of the Housing Lease Protection Act).
Institution of lawsuit demanding the repayment of deposit
- A lessee may file a lawsuit demanding the repayment of deposit of the leased house in the court having the jurisdiction over his/her address or that of the lessor (Article 29 of the Civil Procedure Act).
Exceptional case on lawsuit demanding the repayment of deposit
- A lawsuit demanding the repayment of deposit of a leased house may be dealt with rapidly pursuant to the Trial of Small Claims Act even when the deposit exceeds KRW 30 million (Article 13 of the Housing Lease Protection Act and Articles 6, 7, 10 and 11-2 of the Trial of Small Claims Act).
Effect of the final and conclusive judgment on the lawsuit demanding the repayment of deposit
- Any lessee who has met the requirements for opposing power and obtained the fixed date on the written lease contract shall be entitled to receive the repayment of the deposit from the converted price of the leased house (including the site thereof), in preference to any junior obligees and other creditors, at the time of an auction and a public sale. Any lessee who has paid a small deposit may exercise the preferential repayment right of top priority (Articles 3-2 (2) and 8 (1) of the Housing Lease Protection Act).
- The lessee shall deliver the leased house to the assignee in order to receive the apportioned amount from the converted price of the leased house (Article 3-2 (3) of the Housing Lease Protection Act).