“If the contract renewal is requested, the new landlord for the purpose of living will not be able to vacate.

August sales contract-September charter contract renewal claim exercise-November ownership transfer

Court “request for contract renewal before registration of ownership, contract extension valid” Raise the tenant’s hand

(Suwon = Yonhap News) Reporter Kang Young-hoon = A court ruling came out saying that if the former landlord exercised his right to request a contract renewal for the extension of the jeonse contract, even the new landlord for the purpose of living in the house could not ask the tenant to vacate the house.

This ruling is the first judgment of the court regarding the exercise of the right to apply for contract renewal after the enforcement of the revised Lease Protection Act, which predicted a conflict between landlords and tenants over jeonse contracts.

Lease Dispute (PG)
Lease Dispute (PG)

[김민아 제작] illustration

According to the legal community on the 24th, Mr. A signed a sale contract for an apartment in Gyeonggi-do owned by Mr. B in August of last year, and in November of the same year, the registration of ownership transfer was completed.

He is known to have bought this apartment for the purpose of living, believing that tenant C, who signed a two-year charter contract with a lease deposit of 350 million won in February 2019, will live and move only until February this year.

However, a problem occurred suddenly in the process of trading and registration.

Tenant C exercised the right to request the renewal of the charter contract with Mr. B in September last year, two months before the registration of the transfer of ownership.

Requests for renewal of the contract can be requested from 6 months to 2 months before the expiration of the lease, but C’s charter contract expired in February of the following year.

Mr. C sent a text message to Mr. B, the former landlord, saying, “It is possible to request a renewal of the jeonse contract. I hope that the contract will be extended because it is unfavorable.”

In response, Mr. B said, “It is a relationship with the new owner because it has become a trading contract. The buyer (plaintiff) is very embarrassed because the tenant (defendant) is not going out,” he said. “When I signed a contract and called in the evening, I asked to find out the house before expiration. I thought it was going on, but please think again.”

Mr. C, however, refused to move, saying, “Our situation is very difficult. That is why we exercised the right to request contract renewal.”

From the point of view of Mr. A, even if he bought a new house, he couldn’t move because of the original tenant who said he would keep the charter contract.

The Housing Lease Protection Act stipulates that the landlord and his immediate descendant may refuse to renew the contract if they actually live in the house.

According to this, Mr. A repeatedly announced that he would buy real estate for the purpose of living, and Mr. C filed a lawsuit saying that he believed that he would move to the end of the lease period and bought a house.

Judge Yoo Hyeon-jeong, who was solely responsible for the Civil Affairs 2 of the Suwon District Law, ruled that the new landlord A dismissed the plaintiff’s claim in a lawsuit filed against tenant C for the building delivery.

Judge Yoo said, “The defendant exercised the right to request contract renewal before the plaintiff completed the registration of the transfer of ownership of the real estate in this case. “Therefore, the contract would be renewed, and the plaintiff who transferred the house after that could not refuse it because of actual residence.”

In addition, he added, “It is not enough to say that the evidence submitted by the plaintiff gave confidence by agreeing to move out on the contract expiration date even though the defendant knows that he can acquire and exercise the right to request contract renewal.”

This ruling is known to be the first judgment of the court on the right to apply for contract renewal after the revised Housing Lease Protection Act came into effect on July 31 of last year.

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