When the leased house is put up for auction
Q. I heard that the leased house I live in was put up for auction. Can I get my deposit back?
A. A lessee with opposing power and fixed date has preferential payment right; in this case, when the leased house is put up for auction or public sale, the lessee may receive a refund of the deposit from the amount obtained at the auction in preference to other junior creditors.
◇ Preferential repayment right
☞ A preferential repayment right refers to the right of the lessee to receive the payment of the deposit in preference to other creditors.
☞ The lessee has preferential repayment right if he/she has ① requirements for opposing power (provision of the house and the resident registration) and ② fixed date in the lease contract.
◇ Fixed date
☞ Fixed date refers to a legally recognized date to prove that a housing lease contract exists on the date the deed is written.
☞ A holder of a housing lease contract, such as the lessee and the lessee's proxy, may receive a fixed date at the office of Eup/Myeon/Dong or Si/Gun/Gu where the house is located.
☞ To receive a fixed date, ① the personal information of the lessor and the lessee, object of the lease, lease period, deposit, etc. must be written, and ② the document must be completed with the signatures or seals of the parties to the contract.
☞ If you receive a fixed date on a receipt that does not indicate the house and period of the housing lease, please note that the preferential repayment right is not constituted.
◇ Occurrence of preferential repayment right
☞ If a lessee has a fixed date in the housing lease contract on or before the day the house is provided and the resident registration is completed, the preferential payment right takes effect from 0:00 a.m. on the day after the provision of the house and resident registration.
*Source: 100 Q&A for Easy to Find, Practical Law ( www.easylaw.go.kr )
*This information was prepared as of April 15, 2023.
*Translation: Seoul Foreign Resident Center 02-2229-4907 (June 19, 2023)
*Counseling and inquiry: Seoul Foreign Resident Center 02-2229-4900
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