Check the rights that come with a property before choosing a bid
This Korean auction baseline-right and assumed-liability calculator compares registered rights, receipt dates, tenant move-in registration and handover dates.
It separates rights expected to be extinguished on sale from rights the purchaser may assume and matters requiring individual review.
A home offered below its appraised value may still exceed the acquisition budget when a senior tenant deposit survives.
Start with the underlying rights, then deduct the unpaid deposit estimated under the distribution assumptions from the total acquisition budget.
Korea-based residential court-auction planning
This page uses Korean rules and precedents checked on 2026-11-07, with all monetary inputs in KRW.
It is a preliminary review for one residential property, not a court determination, official distribution schedule or assurance that a bid is safe.
Land, fractional interests, public auctions, unregistered land rights and special rights need separate review.
Unknown information is not replaced with zero; unresolved evidence withholds the assumed-liability total and bid ceiling.
How the baseline right is selected
The baseline right, often called malso-gijun-gwonri, is not simply the oldest entry in the register.
This model looks for the earliest currently effective mortgage or maximum-amount mortgage, attachment, provisional attachment, auction commencement registration, security provisional registration, or qualifying registered jeonse right.
A cancelled or otherwise ineffective entry can change the result if mistakenly included as a live right, so check its current status first.
For an auction commencement, also check the earlier attachment effect of debtor service or registration under Article 83(4) of the Civil Execution Act.
An active commencement row requires a separate checkbox confirming review of debtor service and competing auctions and that registration-receipt chronology applies to this case.
Without that confirmation, the assumed-liability total and final ceiling remain pending.
Receipt numbers resolve same-day registrations
Two rights registered on the same date can have different receipt order.
If the necessary receipt numbers are missing, the calculator does not substitute the order of rows entered.
Review the actual register against Article 4 of the Registration of Real Estate Act.
Changed priorities, joint collateral and different land and building registrations require more than a date comparison.
Distinguish jeonse and provisional-registration rights
A registered jeonse right can qualify as a baseline candidate depending on whether it covers the whole building and has a valid distribution demand.
Where an auction application by the jeonse holder establishes participation, confirm that specific procedural fact separately.
A security provisional registration differs from a provisional registration securing a claim to ownership transfer.
The latter is not automatically marked extinguished merely because it was registered later.
What extinguishment, assumption and review mean
Article 91 of the Civil Execution Act distinguishes mortgage extinguishment, the priority of certain use rights, a jeonse distribution demand and possessory-lien responsibility.
The following treatments assume ordinary statutory sale conditions.
An extinguishment label does not mean that the debtor owes nothing further or that the creditor receives full payment.
Model treatment of registered rights in a Korean court auction| Right or situation | Model treatment | Further evidence |
|---|
| Mortgage or maximum-amount mortgage | Expected to extinguish on sale | Registered maximum is not added as purchaser debt |
| Attachment, provisional attachment, commencement or security provisional registration | Expected extinguishment under ordinary sale conditions | Current effect and actual legal nature |
| Superficies or easement | Extinguishment if subordinate; assumption if senior | A surviving nonmonetary right withholds the bid ceiling |
| Registered jeonse right | Compare priority and valid distribution demand | Separate tenancy may survive jeonse extinguishment |
| Registered lease or lease-registration order | Individual review | Preserved earlier opposition and duplicate deposits |
| Ownership-claim provisional registration, injunction or repurchase | Individual review regardless of date | Claim substance and effect on purchaser title |
A surviving use right does not cease to matter because someone assigns it a zero monetary value.
Review the scope of permitted land or building use, duration and possible cancellation before treating the deposit subtotal as the complete acquisition burden.
Tenant opposition starts the day after both requirements are met
Opposition effective date = max(resident-registration move-in date, dwelling handover date) + 1 day
Maintained opposition effective date ≤ baseline registration date indicates expected senior opposition
Article 3(1) of the Housing Lease Protection Act provides opposition against third parties from the day after both handover and resident registration are completed.
Moving the registration first without receiving the dwelling, or receiving the dwelling without registering, does not complete both requirements.
Find the date on which both were satisfied.
A fixed date is separate evidence for preferential repayment; an earlier fixed date does not bring opposition forward.
The midnight boundary matters
If move-in registration and handover are completed on 2020-05-31, opposition begins at midnight on 2020-06-01.
It can therefore precede a mortgage registered during 2020-06-01.
The calculator does not mark that tenant junior simply because the effective date and registration date are equal, following Supreme Court case 99Da9981.
If both requirements are instead completed on 2020-06-01, opposition begins on 2020-06-02 and follows the 2020-06-01 baseline registration.
An interruption of resident registration or possession, or a problem with the registered address or unit, requires further review.
The first recorded date alone does not establish maintained opposition today.
A lease-registration order can preserve earlier rights and is therefore reviewed individually rather than classified solely by its registration date.
Which records support the inputs?
Registered rights and sale conditions
Copy each type, receipt date, receipt number and current status from a recent register.
Use the sale specification and current-condition investigation for purchaser assumptions, possession and special sale conditions.
The model allows up to 10 rights.
A calculation omitting rights cannot represent the entire property.
Tenants and deposits
For up to 3 tenants, record registration, handover, fixed date, maintained requirements and the deposit still unpaid.
Use the remaining deposit after payments already returned, rather than automatically reusing the original contract amount.
Renewals, increases and succession can have different relevant dates and should not be collapsed into one date without review.
Distribution demands and ledger
Confirm a valid demand in the relevant legal capacity from court records.
Enter actual claim balances and priorities checked for that case; up to 3 other claims can accompany the tenants.
A jeonse-holder demand and a demand as a residential tenant do not automatically substitute for one another.
Auction price and acquisition budget
The expected auction price and enforcement costs determine the distribution pool.
The total acquisition budget and other acquisition costs determine the budget ceiling.
Other costs can include checked acquisition tax, delivery expenses and management charges.
This calculator does not determine tax rates or which management charges legally bind the purchaser.
Blank means unknown; zero means that no amount is present.
Entering zero merely because a statement has not arrived can understate both liabilities and the funding gap.
Record the evidence review and ledger-completeness status truthfully even after every numeric field has been filled.
Distribution uses priorities checked for the actual case
The pool equals expected auction price minus enforcement costs, floored at zero.
The existing auction-distribution engine pays entered priority groups 1 through 6 in order and allocates a shortage within the same group in proportion to claim amounts.
These groups are user-confirmed case inputs, not legal priorities generated automatically from dates.
Current small-tenant tables and tax dates are insufficient on their own
Small-tenant eligibility and protected amounts require the applicable region, the earlier security-right establishment date and amendment history.
National and local tax statutory dates, wage claims, provisional attachments and tenant rights also resist a simple chronological ranking.
If the protected part of a deposit and the remainder need different priorities, obtain a separate distribution review and withhold final reliance on this single-priority model.
A maximum-amount mortgage registration is not necessarily the actual crystallized claim eligible for distribution.
Entering a registered right does not automatically create an equal distribution claim.
Include every participating actual claim in the ledger.
Guessing a demand status or priority while evidence is missing also makes the residual-deposit estimate unreliable.
Residual deposits and the bid-ceiling formulas
Expected senior tenant liability = max(0, unpaid deposit − simulated distribution)
Senior tenant without a valid distribution demand: expected liability = entire unpaid deposit
Raw bid ceiling = total acquisition budget − other acquisition costs − total assumed liabilities
Budget shortfall at entered auction price = max(0, expected auction price + other acquisition costs + current assumed liabilities − total acquisition budget)
Article 3-5 of the Housing Lease Protection Act distinguishes ordinary lease extinguishment at auction from the exception for an opposable tenancy whose deposit has not been repaid in full.
A senior tenant demand alone does not eliminate purchaser exposure.
Review what remains after distribution under the entered assumptions.
A zero purchaser liability for a junior tenant does not mean the tenant recovers the entire deposit.
A negative raw ceiling produces a zero candidate, but the ceiling itself can be withheld if recalculated liabilities at the candidate price exceed the budget.
The shortfall compares total burdens at the currently entered auction price; it is not merely the negative part of the raw ceiling.
The total acquisition budget is the user-selected limit for all acquisition burdens, not an appraisal or expected resale price.
If return on investment is the objective, continue with the existing auction-profit calculator to include financing, holding and exit costs.
Changing the auction price changes distribution
The calculator first derives a candidate ceiling from distributions and assumptions at the entered auction price.
If that candidate is lower than the entered price, it recalculates distributions and residual deposits at the candidate price.
A lower distribution can increase purchaser liabilities; if total burdens at the candidate exceed the budget, the ceiling is withheld.
This consistency check does not search for an optimal bid, so change the price scenario and review the complete result and actual case records again.
Fictional case where the candidate ceiling is withheld
Change the basic example below to an expected price of KRW 300,000,000 and another priority-1 claim of KRW 250,000,000, keeping the other inputs unchanged.
Current distribution is KRW 40,000,000 and residual liability is KRW 60,000,000, giving a simple candidate ceiling of KRW 220,000,000.
At that candidate price, the KRW 210,000,000 distribution pool goes entirely to the other claim, leaving tenant distribution of zero and residual liability of KRW 100,000,000.
Total burdens at the candidate are KRW 340,000,000 against a KRW 300,000,000 budget, so the ceiling is withheld.
The shortfall at the currently entered price is 300,000,000 + 20,000,000 + 60,000,000 − 300,000,000 = KRW 80,000,000.
Step-by-step use
- Confirm scope and special conditions. Check that this is one residential court-auction property and investigate special rights and sale conditions.
Unknown is not the same as absent.
- Enter currently effective registrations. Record type, receipt date and number, with separate confirmation of whole-building jeonse scope and a valid demand.
- Reconcile tenant dates. Identify when both registration and handover were complete, whether requirements continued, and the deposit still unpaid.
- Check the distribution ledger. Enter actual participating tenant and other claims with verified priorities.
A case requiring split priorities needs a separate distribution review.
- Read pending reasons first. Review the baseline, each registered right, tenant opposition date, simulated distribution and remaining deposit in order.
- Adjust the budget and recheck records. Compare the ceiling with the proposed bid and retain a TXT review report for court-record checks or discussion with an adviser.
The example is fictional and illustrates where information belongs and how the arithmetic flows.
Its checked evidence states do not verify any real property.
Replace every item with the actual case information.
Recalculate when a specification or rights filing changes instead of relying on an earlier report.
Fictional example: KRW 60 million remains from a KRW 100 million deposit
Assume a baseline mortgage registered on 2020-06-01 and both tenant registration and handover completed on 2020-05-31.
Opposition begins at midnight on 2020-06-01 and precedes that day’s baseline registration in this comparison.
The tenant has an unpaid deposit of KRW 100,000,000, a valid demand and checked priority 2.
Another participating claim of KRW 150,000,000 has checked priority 1.
These amounts and priorities are a fictional ledger for arithmetic, not a declaration of legal priority for a real case.
Distribution, residual-deposit liability and budget ceiling at a fictional KRW 200 million auction price| Item | Amount in KRW |
|---|
| Expected auction price | 200,000,000 |
| Enforcement costs | 10,000,000 |
| Distribution pool | 190,000,000 |
| Other claim, checked priority 1 | 150,000,000 |
| Simulated tenant distribution | 40,000,000 |
| Expected senior tenant liability | 60,000,000 |
| Total acquisition budget | 300,000,000 |
| Other acquisition costs | 20,000,000 |
| Bid ceiling under the current distribution assumptions | 220,000,000 |
Without a valid tenant demand
If the same senior tenant did not make a valid demand, simulated distribution is zero and the full KRW 100,000,000 deposit is assumed in this model.
With other budget inputs unchanged, the ceiling falls to KRW 180,000,000.
If both tenant requirements are one day later
Moving registration and handover to 2020-06-01 makes opposition effective on 2020-06-02.
Purchaser liability for that junior tenant is compared as zero, while distribution rights, unrecovered claims and possession proceedings remain separate matters.
How to interpret a pending result
- Baseline pending: confirm current effect, dates, receipt order or jeonse qualification.
The first entered row is not an automatic baseline.
- Tenant liability pending: registration, handover, continued requirements, demand or distribution evidence is incomplete.
An unknown residual is not a zero residual.
- Total or ceiling pending: surviving nonmonetary rights, registered leases, special rights or conditions, or missing evidence prevent a complete burden calculation.
Do not add only the calculated rows and use that subtotal as a bid decision.
A calculated result remains conditional on the records and assumptions entered.
If the sale specification lists an assumption that conflicts with the calculator, reconcile the register, possession and distribution records before proceeding.
A change in the baseline or discharge of an earlier right can change the conclusion for the same property.
Review overlapping jeonse and tenancy rights and special rights separately
One contract with both a registered jeonse right and an opposable tenancy
A demand as a registered jeonse holder differs from a demand as a residential tenant.
Supreme Court case 2009Da40790 and decision 2010Ma900 show why extinguishment of jeonse following a demand does not necessarily settle the unpaid balance under a separate opposable tenancy.
Do not count the same deposit twice or infer that every tenancy right disappears with the registered jeonse.
If dual capacity exists or is unconfirmed, individual tenant priority and assumed-liability results are withheld along with the total and ceiling.
Possessory liens, statutory superficies, graves and injunctions
A declared amount or registration date cannot establish a possessory lien, statutory superficies, grave-base right or the effect of an injunction.
An ownership-claim provisional registration or injunction can affect the purchaser depending on the underlying claim even when registered later.
Review possession, claim origin, land and building ownership and related litigation.
A housing lease-registration order also cannot be classified solely by its receipt date.
Article 3-3(5) of the Housing Lease Protection Act can preserve earlier opposition and preferential repayment rights.
Check those rights and the remaining contractual balance.
Putting an arbitrary value for a surviving right into other costs does not resolve the underlying legal issue.
Practical review scenarios
Preparing an owner-occupied apartment bid
Compare registered security rights with actual occupying tenants and include residual deposits and delivery costs in the acquisition budget.
Your intended move-in date, financing and payment deadlines are separate from legal extinguishment.
Check when possession can actually be delivered.
Comparing several properties
Use the same budget assumptions to compare liabilities and unresolved evidence rather than relying only on auction price as a percentage of appraisal.
Do not turn a pending result into a zero-cost property.
Identify which documents would permit another calculation after the uncertainty is resolved.
Before a final bid, recheck the latest sale specification, resident-registration evidence, demands, creditor filings and changes in the register.
Keeping document dates and unresolved questions alongside the report makes discussion with a qualified Korean legal adviser more precise.
Limit tenant names and other personal details when sharing a TXT review report.
Frequently asked questions
Is the earliest registered right always the baseline?
No.
The right must belong to an eligible category and remain effective.
An earlier superficies or ownership-claim provisional registration is treated separately as a surviving or review right rather than automatically becoming the baseline.
What if opposition and the mortgage registration have the same date?
Opposition arising at midnight after both tenant requirements were completed the previous day can precede a mortgage registered that day.
Equal calendar dates are therefore not automatically classified as junior.
The actual requirements and their continuation still need evidence.
Does an early fixed date automatically create assumed deposit liability?
A fixed date does not replace the opposition requirements.
Review registration, handover, continuity, baseline priority, demand and distribution together.
The calculator does not generate senior status or legal distribution priority from the fixed date alone.
Does a senior tenant demand eliminate the purchaser liability?
Check whether the deposit is repaid in full.
An unpaid balance under an opposable tenancy can remain relevant to purchaser assumption.
Do not change an unknown demand to completed or infer distribution solely from a registered mortgage maximum.
Are jeonse-holder and tenant distribution demands interchangeable?
They require separate confirmation because the capacities and rights differ.
One person can hold both, and extinguishing jeonse does not automatically extinguish every unpaid balance under a tenancy.
Dual-capacity cases need individual review to avoid counting a deposit twice.
Why are small-tenant protected amounts not applied automatically?
A current regional table alone misses amendment history tied to the security-right establishment date and the case conditions.
Use checked amounts and priorities.
Where protected and remaining deposit portions need different priorities, obtain a separate distribution review.
What should I do when the total or ceiling is pending?
Resolve the displayed missing information against court records and actual documents, then recalculate.
A calculated row does not turn all unresolved information into zero.
Nonmonetary and special rights require separate professional review.
Is a bid below the ceiling safe?
The ceiling is arithmetic under the entered distribution and acquisition-budget assumptions.
A price change can alter distribution and residual liability, while condition, financing, possession and resale risks remain separate.
Recheck current records and use the auction-profit calculator to compare the full cash flow.
Official sources and rule dates
Current legislation and precedent texts were checked through the National Law Information Center OPEN API on 2026-11-07.
The Civil Execution Act version is MST 268837, effective 2026-02-01; the Housing Lease Protection Act version is MST 276291, effective 2026-01-02.
The Provisional Registration Security Act version is MST 188538, effective 2017-03-28; the Registration of Real Estate Act version is MST 265377, effective 2025-01-31.
Recheck amendments, case-specific sale conditions and later rights filings when reviewing an actual property.
Continue with profit, distribution and possession planning
After resolving the rights and distribution assumptions, carry the expected assumed deposit into the senior-deposit input of the auction-profit calculator.
Then compare the bid, repair, loan and holding costs together.
Use the related distribution or delivery-order calculator alongside the actual court records where those issues require more detail.