March 19, 2019, 01:28:03 PM


Author Topic: Pulling out of a signed lease before moving in  (Read 283 times)

Online obwannabe

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Pulling out of a signed lease before moving in
« on: March 03, 2019, 04:57:35 PM »
I'm wondering what the financial loss would be for canceling a lease before even moving in to the apartment?

I've paid 500k won of a 5 million  deposit to hold the apartment till a certain date(3 weeks from now) and it will be vacant until then.
We have agreed that they will change the wall paper, paint doors and frames, take out some furniture and leave other pieces for me, change the kitchen floor and some other minor superficial improvements.

If I were to cancel today, would I only lose the 500k? I assume I would lose the 300k realtor fee which isnt payable until my move in date. Would I be able to avoid the loss of the realtor fee if I use the same realtor to find a new place?
I'm sure they would have no problem renting it to someone else....but woukd I be on the hook for rent until they found a new tenant? It may even be advantageous for the landlord as he could find someone to move in right away.

Oh, would I be financially responsible for the minor improvements they are making as some of those Improvements were requested by me?

Would there be any additional losses?
I've since found a much better apartment where I know I would be much happier.  I'd be willing to take a financial loss to get it as long the loss is reasonable.

Thanks :)

Online SanderB

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Re: Pulling out of a signed lease before moving in
« Reply #1 on: March 03, 2019, 05:50:42 PM »
I have no idea, it sort of comes down to how good your Korean negotiator is. I have never been in your place, certainly would not give anyone any money until I am given the key so that is advice no.1. The deposit should be yours to keep but you are dependent on their cooperation. They are going to be fairly annoyed so best to do it asap. It could be they will insist on charging you for 1 month rent which is probably around 4-500k?

I think I would not pay the realtor anything unless he is helping me with the new apartment. No cure no pay in that case. What can he do? Take you to court? You will not be using his services and he is not a lawyer who gets paid by the hour.
I'm unaware of the Korean laws but realtors only get  paid by one party and are not allowed to get paid by the 2 parties simultaneously. Sounds logical to me that that should also be the case in Korea. You would be much better off asking for a 6-month lease and sit that one out and then negotiate a clean exit after 6 months if possible.

Also, I do not know your situation but the no.1 thing about apartments is noise, if you have neighbours who beat their wives regularly which has happened to me a LOT or have upstair neighbours throwing their trash out of the windows (Also happened twice) or worse, have smoking ajossis living under or next to you, your beautiful apartment will feel like a whole different version of a personal hell. Oh, come to think of it, if your apartment has been left empty for a while then cockroaches are a real possibility. I remember living on the first floor and the apt. next door had been empty for the entire summer and when the new neighbours came in they witnessed a horror show because the previous tenant had left food and trash there. #MyBeautifulSeoulLife :P
-Fiat voluntas tua-

Online JNM

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Re: Pulling out of a signed lease before moving in
« Reply #2 on: March 03, 2019, 06:06:45 PM »
I am not a lawyer, but...

Do you have a signed contract? If you do, and the hold deposit is included in the contract, then the contract is “live”.

Online Lazio

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Re: Pulling out of a signed lease before moving in
« Reply #3 on: March 03, 2019, 06:33:41 PM »
I have never been in your place, certainly would not give anyone any money until I am given the key so that is advice no.1.

It doesn't work like that. You have to put down 10% when signing the contract. Whether it's purchase, jeonse or monthly rent.

Quote
I'm unaware of the Korean laws but realtors only get  paid by one party and are not allowed to get paid by the 2 parties simultaneously. Sounds logical to me that that should also be the case in Korea.

Both parties pay to the realtor.

As for the OP's problem: Get a Korean co-worker, friend etc. drop by any random budongsan, describe your situation and see what they say. 

Online hangook77

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Re: Pulling out of a signed lease before moving in
« Reply #4 on: March 04, 2019, 12:22:44 PM »
You may be able to negotiate something if you are apologetic and have a good reason.  But they could keep the 500 K.  I had to put down 2 million last fall on a 10 million deposit 2 year lease.  The other 8 million and monthly rent I didn't have to pay until I moved in. 

Online OnNut81

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Re: Pulling out of a signed lease before moving in
« Reply #5 on: March 04, 2019, 03:35:35 PM »
Ignore what SanderB wrote in regards to regulations.  When I put down a million won for my current place to hold it, it was my understanding that I would forfeit that if I backed out but I wouldn't owe anything beyond that.  I had a separate contract for the deposit and when I moved in a new one was made for the 10 million key deposit.  As Lazio mentioned, both the tenant and landlord pay the realtor a fee.