Real Estate Litigation Assistance | Prevailing in a Building Delivery Lawsuit Based on Unpaid Rent and Unauthorized Possession

The client who pursued the real estate litigation was the owner and lessor of a commercial building, and because the lessee continued to occupy the building while failing to pay rent for a prolonged period, the client's exercise of property rights was restricted.

The lessee initially delayed paying rent, citing temporary financial circumstances, and repeatedly conveyed that the rent would soon be settled.

Wishing to maintain the lease relationship, the client waited for the rent for a certain period, but as the period of delinquency accumulated, the situation reached the point where the maintenance fees also went unpaid.

Thereafter, the frequency of the lessee's contact sharply decreased, and the lessee maintained what was effectively a state of unauthorized possession while avoiding any discussion of the contract itself.

The client determined that real estate litigation was necessary in order to bring about the proper termination of the lease and the recovery of the building, and the client came to consider legal measures with the assistance of a real estate attorney.

During the consultation, the client conveyed the practical burden that “the situation of allowing the building to be used without even receiving rent is becoming prolonged.”

Because the key issues in real estate litigation are whether the lease has terminated and whether the lessee has a title to possession, the real estate attorney established a response strategy centered on organizing the facts and selecting the appropriate procedure.

In the real estate litigation conducted with the assistance of the real estate attorney, the court accepted the lessor's claim and rendered a judgment ordering the lessee to deliver the building.

The court cited as grounds for its determination that the lessee's rent delinquency satisfied the requirements for termination of the contract and that the possession continued even after the lease had terminated.

In addition, the court took into account that the notice of termination of the contract had been confirmed through objective materials and that the lessee retained no separate title to possession.

The litigation costs were also determined to be borne by the lessee, and after the judgment the client responded that “a burden that had continued for a long time has been resolved.”

Among real estate litigation, a building delivery lawsuit is a representative civil procedure brought where a building is not returned even though the lease has terminated.

The legal basis is divided into the obligation to return arising upon termination of the lease and the right to claim the return of owned property under Article 213 of the Civil Act.

▶ Article 213 of the Civil Act (Right to Claim the Return of Owned Property)

In particular, in the case of a commercial building, termination of the contract becomes possible once rent delinquency exceeds a certain level, so organizing the period and amount of the delinquency is important.

▶ Article 10-8 of the Commercial Building Lease Protection Act (Rent Delinquency and Termination)

A building delivery real estate litigation generally proceeds in the following order.

▶ Flow of the Building Eviction Procedure

Where real estate litigation is pursued while the contract term still remains, a principal issue becomes whether the manifestation of intent to terminate the contract reached the lessee.

For this reason, a process of comprehensively considering various materials, such as text messages, messenger records, and certified mail, to establish the circumstances of the termination is necessary.

Real estate litigation related to the delivery of a building proceeds through several procedures in stages, from notice of termination of the contract by sending certified mail, to a provisional injunction prohibiting the transfer of possession, the filing of suit, the trial, and compulsory execution.

Although each stage appears to proceed independently, the determinations and the organization of materials at the preceding stages directly affect the results of the subsequent trial and execution.

In particular, at the contract termination stage, the ground and timing of termination must be clearly organized, and at the litigation stage, the circumstances of the rent delinquency, the state of possession, and the fact of termination of the contract need to be organized.

In addition, even after the judgment, if voluntary delivery is not made, a response that takes the compulsory execution procedure into account is necessary.

This firm has many real estate specialist attorneys registered with the Korean Bar Association, and it assists clients with a consistent response, conducting the review of building delivery and real estate contracts in general alongside litigation.

Drawing on data accumulated through experience in a wide range of real estate litigation, the firm establishes strategies suited to the circumstances of each case.

If you need legal assistance in a situation similar to the case above, we invite you to prepare a response strategy through a 🔗legal consultation reservation.