Tenant Who Reversed Renewal Request... When Is the Lease Contract End Date?

Published 12 Feb.2024 16:13(KST)

Updated 12 Feb.2024 16:35(KST)

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Supreme Court Rules Termination Takes Effect '3 Months After Termination Notice'

If a tenant requests the renewal of a lease contract and then notifies the landlord of contract termination before the renewed contract period begins, when should the contract termination date be considered? In such cases, the Supreme Court has issued its first ruling that the effective date of termination is "3 months after the termination notice."

In other words, even if the intention to terminate reaches the landlord before the renewed lease contract period starts, the termination does not take effect until 3 months have passed from the start of the renewed lease contract period.

[Image source=Beomryul News]

The Supreme Court Civil Division 1 (Presiding Justice Seo Kyunghwan) on January 11 overturned and remanded the lower court's ruling that had favored the plaintiff in the case where Mr. A (represented by lawyers Park Chanho, Son Wonwoo, and Jeon Byeongmo of the law firm Weon) filed a lawsuit against Mr. B for the return of the lease deposit, etc. (2023Da258672).

Mr. A entered into a lease contract with Mr. B for an apartment from March 10, 2019, to March 9, 2021. Mr. A notified Mr. B of his request to renew the lease contract, which reached Mr. B on January 5, 2021. However, Mr. A suddenly notified the termination of the renewed lease contract on January 28, 2021, and this notice reached Mr. B the next day.

Mr. A paid rent until April 30, 2021, which is 3 months after his termination notice was received, and then vacated the apartment. However, Mr. B, assuming that the lease contract was terminated 3 months after the renewed lease period began on March 10, i.e., on June 9, returned the lease deposit and long-term repair reserve fund to Mr. A after deducting the rent accrued until then. Mr. A then filed a lawsuit.

The court stated, "Article 6-3(1) of the Housing Lease Protection Act stipulates that 'the landlord may not refuse the tenant's request for contract renewal without justifiable grounds if the request is made within the period specified in Article 6(1) first sentence,' thereby establishing the tenant's right to request contract renewal. Paragraph 4 of the same article provides that 'Article 6-2 shall apply mutatis mutandis to the termination of leases renewed pursuant to paragraph 1.' Article 6-2(1) of the Housing Lease Protection Act states that 'if the contract is renewed pursuant to Article 6(1), notwithstanding Article 6(2), the tenant may notify the landlord of contract termination at any time,' and paragraph 2 states that 'the termination pursuant to paragraph 1 shall take effect 3 months after the landlord receives the notice,'" the court ruled.

It further explained, "Considering these provisions together, if the tenant requests the renewal of the lease contract pursuant to Article 6-3(1) of the Housing Lease Protection Act, and there are no grounds for the landlord to refuse the renewal, the renewal takes effect when the renewal request reaches the landlord. Once the renewal takes effect, the tenant may notify the landlord of contract termination at any time under Article 6-2(1), and the termination takes effect 3 months after the notice is received. This applies even if the termination notice reaches the landlord before the renewed lease contract period begins."

It added, "Since Mr. A's notice of termination of the renewed lease contract reached Mr. B on January 29, 2021, the termination took effect 3 months later on April 29, 2021. The lower court should have ruled that, based on April 29, 2021, as the effective date of termination, any unpaid rent should be deducted, and the remaining lease deposit and long-term repair reserve fund should be returned to Mr. A by Mr. B," the court said.

Previously, the first trial partially ruled in favor of the plaintiff, while the second trial ruled against the plaintiff.