Claims and debts attorney, is it safe to use a jeonse deposit as security?

Hello. This is a claims and debts attorney at Daeryun Law LLC.

A jeonse deposit is a monetary claim that the tenant can have returned from the landlord when the lease terminates.

Therefore, lending money using this jeonse deposit return claim as security is legally possible.

However, simply keeping the jeonse contract does not, in itself, create the effect of security.

In order to use a jeonse deposit as security, a claim assignment agreement for the jeonse deposit return claim must be concluded, and one of the following procedures must be gone through for the effect to be recognized against a third party.

- Where the landlord has explicitly consented to the fact of the claim assignment

- Where the tenant notifies the landlord of the fact of the claim assignment by certified mail

If these procedures are not carried out, it is difficult to exercise the return of the jeonse deposit as security even if the debtor actually fails to make repayment.

In addition, where the jeonse deposit return claim has already been assigned to another person, or where a restriction on rights, such as attachment or provisional attachment, has been established, it may have no value as security, so prior confirmation is essential.

For detailed matters, you may wish to confirm through a consultation with a claims and debts attorney.

A claims and debts attorney comprehensively reviews the legality, priority, and recoverability of the security arrangement according to the individual case, and presents measures for securing the claim safely.