CONTENTS
- 1. The Client Seeking to File a Regional Housing Association Lawsuit
- - Details of the Client's Case
- 2. Regional Housing Association Lawsuit: What Is a Regional Housing Association
- - Points of Caution Regarding Regional Housing Associations
- 3. The Specialized Lawyer Who Assisted in Filing the Regional Housing Association Lawsuit
- 4. Regional Housing Association Lawsuit Result: “Granted in Full for 100 Million Won”
1. The Client Seeking to File a Regional Housing Association Lawsuit
The client, who sought to file a regional housing association lawsuit, wished to recover the down payment and interim payment paid upon joining the regional housing association.
The client, who resides in a provincial area, had considerable concern about whether to retain a firm located in the metropolitan area. The client stated that, upon learning that this firm maintains branch offices throughout the country and provides legal services of the same quality as its main office, the client chose the firm without hesitation.
Details of the Client's Case
The specialist attorney listened to the reasons the client wished to file a regional housing association lawsuit.
The client stated that the client had concluded a membership agreement with a regional housing association that was promoting a new apartment construction project.
The client stated that, after applying for a subscription to the apartment scheduled to be built, the client paid 70 million won as the first and second down payments.
In addition, the client subsequently deposited 30 million won, a part of the interim payment, for a total of 100 million won paid to the regional housing association.
Upon concluding this contract, the client, at the proposal of the regional housing association, signed an assurance letter confirming that, if the client wished to withdraw membership on grounds of dissatisfaction with the building and unit number, the full amount paid would be refunded.
Some time later, the client was assigned an apartment building and unit number, and, having been assigned a low-floor, west-facing unit, the client decided to withdraw membership.
However, although the client expressed an intention to withdraw membership, the regional housing association disregarded this and did not refund the down payment and interim payment.
The client therefore came to this firm's specialist attorney in order to file a regional housing association lawsuit and recover the client's money.
2. Regional Housing Association Lawsuit: What Is a Regional Housing Association
A regional housing association refers to an association formed to supply housing to a head of household who owns no housing or owns only one housing unit with an exclusive residential area of 85m2 or less, in order to obtain a home of their own, by accepting them as a member if they meet certain qualification requirements, regardless of whether they hold a housing subscription savings account.
Many people confuse a regional housing association with 🔗redevelopment·reconstruction, but there is a clear distinction between them.
Regional housing association | Category | Redevelopment, reconstruction |
Members | Project entity | Construction companies, real estate developers, etc. |
Before association establishment approval, additional recruitment after association establishment approval and | Member | After project plan approval and commencement of construction |
Undetermined | Completion timing | Determined at the time of occupant recruitment |
A head of household who, as of the date of application for association establishment approval, | Member | An owner of land or a building within the redevelopment project zone, or the holder of a superficies right thereon |
Points of Caution Regarding Regional Housing Associations
1. Voluntary withdrawal from the association is not permitted, and obtaining a refund of contributions upon voluntary withdrawal is difficult
2. Business plans, land acquisition rates, and similar figures are sometimes exaggerated, so careful review is necessary
3. If there is a possibility of misconduct by the association or its business agent, participation in the management of the association through measures such as requests for disclosure of information is necessary
4. If land purchase is not completed, the project may be prolonged or fall through
5. Building and unit numbers and sale prices are determined after approval of the business plan, so they are not fixed in advance
6. Because members are recruited while matters such as land purchase and contractor agreements remain unsettled, additional contributions may arise
7. Before joining, you should carefully review the contract and the bylaws and check whether there are any unfavorable terms
🔗A regional housing association carries a risk of property loss in this way, so the progress of the project must be reviewed without fail.
If you obtain advice from a specialized attorney before joining as a regional housing association member, you can review in advance whether there are any legal risks.
3. The Specialized Lawyer Who Assisted in Filing the Regional Housing Association Lawsuit
The attorney assisted the client in filing a regional housing association lawsuit and argued as follows.
Based on the guarantee assurance agreement prepared between the association and the client as well as on judicial precedent, the attorney argued that the contract in this case was void.
The guarantee assurance agreement provided that, if a member wished to withdraw on grounds of dissatisfaction with the building and unit number assigned after approval of the housing project plan, the full amount of the member contributions already paid would be refunded.
▶Supreme Court, March 17, 2022, Judgment No. 2020Da288375
Accordingly, if the above refund guarantee agreement is void as a disposition of collectively owned property carried out without a resolution of the general meeting, then under the legal principle of partial invalidity of a juristic act, the association membership agreement concluded as an integrated whole with it also becomes void as a rule.
On this basis, the attorney argued that, because the contract in this case was void, the association was obligated to return the 100 million won that the client had paid as the down payment and interim payments as unjust enrichment.
4. Regional Housing Association Lawsuit Result: “Granted in Full for 100 Million Won”
After hearing the attorney's arguments, the court rendered a judgment ordering the association to pay the client 100 million won.
In addition, the court ordered the association to bear all the costs incurred in this litigation, and the client expressed gratitude to the attorney, stating that thanks to the attorney she had been able to recover her money.
Regional housing associations have the advantage of allowing a person to acquire a home at a relatively low price, but, as with the client in this case, they carry a high risk of becoming caught up in disputes.
The firm has its real estate attorneys, civil litigation attorneys, and the Evidence Investigation Center collaborate to review and analyze cases and prepare a response strategy so that the client can obtain the desired result.
If you are about to file a regional housing association lawsuit and need assistance, please proceed with a 🔗legal consultation reservation right away.
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.
