Summary A client signed a lease for a commercial unit to open a clinic and paid the contract deposit, then discovered that the floor area had been misdescribed. The landlord refused to return the deposit. After we sent formal demand letters to the landlord and the brokers and spoke with them, the deposit was returned the next day.
Background
Our client, who had just completed military service, signed a lease for a commercial unit to open a traditional Korean medicine clinic and paid the contract deposit. The contract had been signed on the basis of an incorrectly described floor area, which the client discovered only afterwards. When the client asked for the deposit back, the landlord refused and pointed to his own connections with lawyers.
What we did
1) Reviewed the contract, the listing information and the actual floor area to establish how the description differed from reality.
2) Sent formal demand letters (naeyong jeungmyeong, certified-content mail) to the landlord and to the real estate brokers involved, setting out the legal basis for returning the deposit.
3) Followed up by phone with the landlord and brokers, who had initially objected strongly.
Result
The day after our call, the landlord returned the contract deposit. No lawsuit was needed.
Key takeaways
1) Before signing a commercial lease in Korea, check the floor area on the building register, not just the listing.
2) A clear demand letter that sets out the legal grounds can resolve a dispute before litigation.
3) Brokers may also bear responsibility for inaccurate explanations of the property.
Names are pseudonyms and some details have been changed to protect client confidentiality. Every case is different, and past results do not guarantee a similar outcome.
Related guides
• Debt Collection in Korea
• Choosing Who Should Collect Your Debt in Korea
Deposit not returned?
We review your contract and pursue the deposit through demand letters, payment orders or lawsuits, with advice in English.
Request a consultation ➔
Summary A client signed a lease for a commercial unit to open a clinic and paid the contract deposit, then discovered that the floor area had been misdescribed. The landlord refused to return the deposit. After we sent formal demand letters to the landlord and the brokers and spoke with them, the deposit was returned the next day.
Background
Our client, who had just completed military service, signed a lease for a commercial unit to open a traditional Korean medicine clinic and paid the contract deposit. The contract had been signed on the basis of an incorrectly described floor area, which the client discovered only afterwards. When the client asked for the deposit back, the landlord refused and pointed to his own connections with lawyers.
What we did
1) Reviewed the contract, the listing information and the actual floor area to establish how the description differed from reality.
2) Sent formal demand letters (naeyong jeungmyeong, certified-content mail) to the landlord and to the real estate brokers involved, setting out the legal basis for returning the deposit.
3) Followed up by phone with the landlord and brokers, who had initially objected strongly.
Result
The day after our call, the landlord returned the contract deposit. No lawsuit was needed.
Key takeaways
1) Before signing a commercial lease in Korea, check the floor area on the building register, not just the listing.
2) A clear demand letter that sets out the legal grounds can resolve a dispute before litigation.
3) Brokers may also bear responsibility for inaccurate explanations of the property.
Names are pseudonyms and some details have been changed to protect client confidentiality. Every case is different, and past results do not guarantee a similar outcome.
Related guides
• Debt Collection in Korea
• Choosing Who Should Collect Your Debt in Korea
Deposit not returned?
We review your contract and pursue the deposit through demand letters, payment orders or lawsuits, with advice in English.
Request a consultation ➔