Deposit-based lease (jeonse)
- A deposit-based lease is one type of way to lease a house. The lessee makes a lump-sum deposit on a rental space to the property owner and uses the house for a period of one or two years, according to the lease contract. The lessee shall pay 10% of the security deposit for the lease as a down payment when concluding the contract, and settle the balance when moving in.
- The lessee shall maintain the original house conditions during the term of the lease. If he/she wants interior work done, he/she shall obtain consent from the property owner in advance.
- The property owner shall return the full amount of the security deposit to the lessee at the end of the lease.
- Under a monthly lease contract with a term of one or two years, the lessee may use the house by paying a deposit up front and rent every month. The amount of the deposit is generally 10 to 20 times the monthly rent.
- The lessee shall pay 10% of the security deposit for the lease as a down payment and settle the balance when moving in. If the lessee cancels the lease during the term of the contract, the down payment shall not be returned. If the property owner cancels the contract, he/she shall pay twice the amount of the down payment to the lessee.
- In principle, the full amount of the security deposit is returned after termination of the contract. In special cases, such as arrears of monthly rent or utility charges, these expenditures are deducted from the security deposit, and the remaining amount is returned.
- Real estate agent commissions vary depending on the type of residence and area, as well as the transaction amount. You can find real estate agencies that provide services in foreign languages (mainly English, Chinese, and Japanese) via the Seoul Metropolitan Government's Real Estate Information Center website (http://land.seoul.go.kr).