Claim for Reimbursement of Useful Expenditures
Lessee's right to claim reimbursement of useful expenditures- If a lessee has made expenditures to increase the objective value of the leased house while he/she was using the leased house or taking profits therefrom in the relation of the lease, the lessee may exercise his/her right to claim reimbursement of useful expenditures. With this right, the lessee may demand the amount disbursed or the amount by which the value of the leased house has been increased from the lessor according to the lessor's choice, to the extent that the increase in value remains subsisting at the time when the lease terminates (Article 626 (2) of the Civil Act and Supreme Court Decision, August 27, 1991, 91 Da 15591 and Cross Action 15607).
※ Useful expenditures shall be the expenses paid by a lessee to increase the objective value of a leased object.
- In terms of the scope of a claim for reimbursement of useful expenditures, the lessee may receive either the amount disbursed by himself/herself as useful expenditures or the amount of the increased value remaining subsisting according to the lessor's choice (the former part of Article 626 (2) of the Civil Act).
Timing for and period of claim for reimbursement of useful expenditures- If a lessee has made useful expenditures, he/she may demand reimbursement of such expenditures after the lease terminates, unlike necessary expenditures (the former part of Article 626 (2) of the Civil Act).
· If the lessee demands reimbursement of useful expenditures, the lessor shall respond to it. The court may, upon the application of the lessor, allow him/her reasonable time for settlement with the lessee as a grace period (the latter part of Article 626 (2) of the Civil Act).
- The reimbursement of useful expenditures shall be claimed within 6 months from the date of the return of the leased house to the lessor (Application of Article 617 of the Civil Act under Article 654 of the same Act).
Renunciation of the right to claim reimbursement of useful expenditures- The lessee's right to claim reimbursement of useful expenditures is a special stipulation between the parties. A claim for reimbursement of useful expenditures may be renounced or restricted (Article 652 of the Civil Act).