[Q&A] 03. Worried about losing my deposit in a multi-family house with many senior tenants. How does priority work?

The Dilemma

"I'm renting a unit in a multi-family house (Dagagu), but I found out there are many other tenants in the building. If the building goes to auction, I heard people get paid in order of their 'Fixed Date.' Am I at risk of losing my money?"

The Legal Reality: The 'First Come, First Served' Rule in Multi-Family Houses

In a standard multi-family house (Dagagu주택), the building has only one owner, but multiple tenants. This creates a high-stakes competition for the building's auction proceeds if the landlord faces financial ruin.

1. How Auction Proceeds Are Distributed

When a Dagagu house is auctioned, the court pays creditors and tenants strictly based on their legal priority:

• Taxes and Senior Mortgages: Government taxes (with prior dates) and bank mortgages registered before your lease take precedence over everyone.
• Tenant Priority (Opposing Power + Fixed Date): Among tenants, those who completed their 'Move-in + Residence Report + Fixed Date' earliest get paid first in full. Once the auction money runs out, the remaining tenants get nothing.

2. The Danger of Dagagu Houses

Unlike an apartment building (where each unit has its own separate title/deed), a Dagagu house is registered under a single title.

• You are competing with all other tenants in the building for the total sale price.
• If there are 10 tenants before you, and the building sells for a low price, tenants #1 through #6 might get their deposits back, while tenants #7 through #10 lose everything.

3. How to Check Your Standing Before Signing

Before signing a lease in a Dagagu house, you must demand that the landlord provide a 'Confirmation of Lease Status' (Im-dae-dae-cha-gwan-gye H확인서) showing:

• The total number of existing tenants.
• Their exact deposit amounts.
• Their respective 'Fixed Dates.' If the landlord refuses, or if the math shows the total building debt + all deposits exceeds 70% of the building value, do not sign.

4. What If You Are Already Living There?

If you are already in a Dagagu house and worried:

• Verify your exact date of securing priority.
• If an auction starts, you must file a 'Demand for Distribution' (Baedang-yog-gu) within the court's strict deadline. If you fail to file, you receive zero money even if you have priority.

5. Why Hoam Law Firm?

Dagagu house auctions are notoriously complex. Hoam Law Firm conducts a thorough 'Multi-Family Risk Assessment' before you sign, calculating the exact safety margin of the building. If your building is in distress, we guide you through the court distribution process to ensure your voice and priority rank are forcefully protected.

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