CONTENTS
- 1. The Client Who Requested a Real Estate Attorney Consultation
- - Background of the Case
- - Assistance Provided Through the Real Estate Attorney Consultation
- - Result of the Assistance Through the Real Estate Attorney Consultation: Favorable Judgment in the Building Surrender Lawsuit
- 2. Real Estate Attorney Consultation: Points to Consider in a Building Surrender Lawsuit
- - Points to Consider in a Building Surrender Lawsuit
- 3. The Response Strategy Proposed by the Real Estate Attorney Consultation
- - Response Strategy
1. The Client Who Requested a Real Estate Attorney Consultation
The client who requested a real estate attorney consultation was the representative of a commercial cooperative that operated and managed buildings it owned.
Background of the Case
The client entered into a lease agreement with tenant A (hereinafter the defendant) and agreed to lease the building in exchange for a deposit of 100 million won and monthly rent of 4 million won.
The defendant renovated the leased building, installing interior fixtures and kitchen equipment, among other things, and used the premises to operate a cafe.
In the early part of the lease period, the defendant paid the rent faithfully every month, and the client therefore came to trust the defendant and implicitly extended the contract for one year after the two-year term expired.
After the extension, however, the defendant abruptly stopped paying rent, repeatedly saying things such as "operating costs are short" and "I will definitely pay later."
The defendant failed to properly pay rent for approximately 20 months, and the amount reached 80 million won.
The matter concerning the defendant was placed on the agenda at a cooperative meeting, and the client, representing the cooperative, notified the defendant of the termination of the lease agreement for nonperformance of the contract.
The defendant, however, asserted that the beneficial expenses for the interior renovations and the premium had to be returned, and continued operating the business while occupying the building.
The client therefore requested a real estate attorney consultation in order to lawfully terminate the contract through a building surrender lawsuit.
Assistance Provided Through the Real Estate Attorney Consultation
1) Rebutting the Defendant's Claim to Recover the Premium Under the Commercial Building Lease Protection Act
(1) From six months before the lease period ends until the lease terminates, the lessor shall not, by engaging in any of the acts falling under any of the following subparagraphs, obstruct the lessee from receiving a premium from a person who intends to become a new lessee introduced by the lessee under a premium contract. However, this shall not apply where any of the grounds under any subparagraph of Article 10 (1) exists.
(1) Where the lessee requests renewal of the contract during the period from six months to one month before the lease period expires, the lessor shall not refuse without justifiable grounds. However, this shall not apply in any of the following cases.
1. Where the lessee has defaulted on rent in an amount reaching three months' worth of rent
The real estate attorney organized the rent payment records and the period of arrears, making clear that the defendant had defaulted on rent equivalent to three months or more over a prolonged period.
On this basis, the attorney emphasized that the termination of the lease agreement constituted a justifiable ground under the Commercial Building Lease Protection Act and that the defendant could not assert protection of the opportunity to recover the premium.
2) Rebutting the Claims Regarding Interior Costs and Beneficial Expenses
The real estate attorney emphasized that the interior fixtures and furnishings installed by the defendant had been installed for the defendant's own business and could not be the subject of a claim for reimbursement of beneficial expenses.
In addition, the attorney made clear that because a lessee bears the obligation to restore the property to its original condition upon termination of the lease, the lessee cannot, on that premise, claim from the lessor beneficial expenses or an amount equivalent to a premium.
Result of the Assistance Through the Real Estate Attorney Consultation: Favorable Judgment in the Building Surrender Lawsuit
As a result of the assistance provided through the real estate attorney consultation, the court found that the lease agreement had been lawfully terminated and that the defendant's claims regarding the premium and the beneficial expenses were without merit.
Accordingly, the court ordered the defendant to surrender the building on the condition that the defendant be refunded 20 million won, the amount remaining after deducting 80 million won in unpaid rent from the deposit.
2. Real Estate Attorney Consultation: Points to Consider in a Building Surrender Lawsuit
A building surrender lawsuit is a civil action filed when a property owner has demanded that an occupant vacate the premises for a justifiable reason, such as the termination of a lease agreement or the recovery of ownership, but the occupant refuses and continues to reside in or use the real estate.
Points to Consider in a Building Surrender Lawsuit
In a building surrender lawsuit, the most important issues are whether the tenant breached the lease agreement and whether the contract was lawfully terminated.
If the tenant defaulted on rent or failed to perform the obligations set out in the contract, this may constitute grounds for eviction, but those facts must be clearly proven with objective evidence.
In addition, even where grounds for the expiration or termination of the contract exist, whether the procedure for terminating the lease agreement was legally proper is also evaluated.
If preparation on these points is insufficient, the building surrender lawsuit may be prolonged or lead to an unfavorable result, so careful review is necessary from the stage before litigation begins.
3. The Response Strategy Proposed by the Real Estate Attorney Consultation
In a building surrender lawsuit, the key issues are the fact of the tenant's breach of contract and whether the lease agreement was lawfully terminated.
Therefore, before litigation, it is important to organize the facts and evidence systematically and to carefully review whether the legal requirements have been satisfied.
Response Strategy
Matters to Confirm | Direction of Response |
Organizing the lease agreement and special terms | Review the contract clauses and special terms to clearly identify whether the tenant breached any obligation |
Proving rent arrears and unpaid amounts | Secure objective evidence of the rent payment records, the period of arrears, and the unpaid amount |
Confirming the legality of the contract termination | Prepare materials proving the notice of termination or the fact that the contract has expired |
Reviewing the occupant and the feasibility of execution | Identify the actual occupant and assess in advance the feasibility of surrender and execution after judgment |
If you need advice on a building surrender lawsuit, it can be helpful to consult a specialist attorney through a real estate attorney consultation.
Through the consultation, the real estate attorney organizes the contractual relationship and the issues in dispute and assists you in proceeding with the building surrender lawsuit while reducing unnecessary disputes.
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This content is based on actual case studies of Daeryun Law LLC with some adaptations, and the copyright belongs to our firm.
Unauthorized reproduction, duplication, or distribution and other copyright infringements may result in legal action under applicable laws.
