Guide to Compulsory Execution Against Real Estate: Procedures and Precautions

Based on 179 consultation cases · Updated October 4, 2026 · Translated from the Korean original.

In a real estate auction, you must check not only the bidding procedure but also what is being sold, the rights affecting the property, the order of priority for distribution, and the rights of occupants. The requirements for enforcing against an unregistered building and the ways to challenge auction proceedings vary by case, so carefully review the relevant documents and deadlines.

People involved → Debtor → Auction court → Prospective purchaser → Real estate is being sold through compulsory auction → Do documents identify the unregistered building and match its actual details? → Yes — Civil Execution Act Article 81 and Civil Execution Rules Article 42 → Are the unit's land-use rights and any permission for separate disposition clear? → No — Civil Execution Act Article 81 and Civil Execution Rules Article 42 → Yes — Aggregate Buildings Act Article 20 → Has the debt secured by the mortgage already been repaid? → No — Aggregate Buildings Act Article 20 → Yes — Civil Execution Act Articles 265, 275, 86 and 46 → No — Civil Execution Act Articles 265, 275, 86 and 46 → Auction may proceed but check the property and rights → A problem may affect the sale or rights Consider a challenge if debt was repaid → Review sale items and inspection report → Check property condition…

Key points

In a date-of-sale bidding procedure, bidders submit the prescribed bid form and a deposit for the purchase offer. Once submitted, the bid form cannot be withdrawn, changed, or exchanged (Civil Execution Rules, Articles 62, 63, and 64 (민사집행규칙 제62조·제63조·제64조)).
A compulsory auction may be applied for in respect of an unregistered building if certain documents can establish that the building belongs to the debtor and identify its lot number, structure, and area. The application may be dismissed if the building is not found to match the details in the building permit or building notification documents (Civil Execution Act, Article 81 (민사집행법 제81조); Civil Execution Rules, Article 42 (민사집행규칙 제42조)).
As a general rule, the right to use the land appurtenant to a unit in a condominium building is disposed of together with the unit, unless special circumstances apply, such as a governing agreement or notarized deed allowing separate disposition. The auction court must examine whether the right to use the land exists and whether separate disposition is permitted (Act on the Ownership and Management of Aggregate Buildings, Article 20 (집합건물의 소유 및 관리에 관한 법률 제20조)).
The statement of sale items and the on-site inspection report are important materials that prospective purchasers use to understand the property's condition and the rights affecting it. A defect in preparing these materials does not always prevent the sale; the issue is assessed primarily by considering the effect it may have had on the decision to purchase or the price (Civil Execution Act, Articles 105, 121, and 123 (민사집행법 제105조·제121조·제123조)).
Even if a residential tenant has signed a confirmation of rent-free occupancy for a senior mortgagee, it may be contrary to the principle of good faith for the tenant to assert their rights against the purchaser if the purchaser relied on the notice in the statement of sale items and bought the property on the understanding that they would not assume the obligation to return the tenant's deposit.
If an auction begins even though the debt secured by a mortgage has been repaid, consider challenging the commencement order or filing an action disputing the debt. Filing an objection or an action does not, by itself, stay the auction, so check whether a separate stay order is needed (Civil Execution Act, Articles 265, 275, 86, and 46 (민사집행법 제265조·제275조·제86조·제46조)).
Whether rights are extinguished or assumed in an auction, and how proceeds are distributed, depend on factors such as the priority of the rights, when the auction was applied for, and whether a demand for distribution was filed. In particular, a creditor whose claim requires a demand for distribution must complete the procedure by the prescribed deadline to receive a distribution (Civil Execution Act, Article 88 (민사집행법 제88조)).

Frequently asked questions

Q. What should I be careful about when bidding in a court real estate auction?

Accurately enter the case number, property description, bidder information, and bid amount on the bid form. Unless the special conditions of sale provide otherwise, you must also submit a deposit for the purchase offer. Because a bid cannot be withdrawn, changed, or exchanged, it is important to review the relevant materials, including the statement of sale items, before deciding on your bid.

Case 1

Q. Can an unregistered building be sold at a compulsory auction?

You may apply for a compulsory auction of an unregistered building if you can establish that it belongs to the debtor and provide the building's lot number, structure, and area, as well as documents relating to the building permit or building notification. The application may be dismissed if the building's actual condition is not found to match the details in the permit or notification documents.

Case 3, Case 8

Q. If only the unit in an apartment building is being auctioned, can I also acquire the right to use the land?

Even if the land-right has not yet been registered, the right to use the land may be included in the auction of the unit if circumstances support its existence—for example, where the unit and a share of the land were purchased together and paid for in full—and there are no special circumstances, such as a governing agreement, permitting separate disposition. You should check the specific rights affecting the property and whether separate disposition is permitted.

Case 2, Case 4

Q. If a residential tenant has signed a confirmation of rent-free occupancy, can the tenant assert their rights against the purchaser at auction?

The fact that a tenant signed a confirmation of rent-free occupancy for a mortgagee does not, by itself, mean that the tenant can always assert their rights against the purchaser. If the purchaser relied on the tenant's rights and priority for distribution as stated in the statement of sale items, and bought the property on the understanding that they would not assume the obligation to return the tenant's deposit, the tenant's assertion of rights against the purchaser may violate the principle of good faith.

Case 7

Q. What should I do if a mortgage auction begins even though I have repaid the secured debt in full?

You may consider challenging the commencement order on the grounds that the security right does not exist or has been extinguished, or filing an action disputing the debt. However, filing an objection or an action does not, by itself, stop the auction proceedings. You may need to apply separately for an auction stay order or similar relief.

Case 19

Q. Will a leasehold right that ranks behind a mortgage be assumed by the purchaser after the auction?

According to the ruling in the case, if the leasehold right ranks behind a senior mortgage and that mortgage is extinguished through the auction, the leasehold right is also extinguished by the sale and cannot be asserted against the purchaser. In practice, however, you should check the priority of each right and the conditions of sale.

Case 21

Q. Can a mortgagee receive a distribution on a claim exceeding the maximum secured amount?

The portion exceeding the maximum secured amount is not entitled to priority payment under the mortgage. To receive a distribution on that excess portion at the same priority as other provisional attachment creditors, the mortgagee must meet separate requirements, such as making a valid demand for distribution in respect of the excess.

Case 13

Q. I bought property at auction and resold it to the former owner. Can I apply for an order to deliver possession?

If the purchaser resells the property to the former owner after paying the purchase price, the seller is obliged to transfer possession to the purchaser, making it difficult to apply for an order to deliver possession while the sale contract remains in effect. The applicant must establish that the basis for the occupant's possession has ceased, for example, because the contract was rescinded.

Case 15

Relevant laws

Civil Execution Act, Article 16 (민사집행법 제16조)
Civil Execution Act, Article 34 (민사집행법 제34조)
Civil Execution Act, Article 44 (민사집행법 제44조)
Civil Execution Act, Article 46 (민사집행법 제46조)
Civil Execution Act, Article 78 (민사집행법 제78조)
Civil Execution Act, Article 81 (민사집행법 제81조)
Civil Execution Act, Article 84 (민사집행법 제84조)
Civil Execution Act, Article 85 (민사집행법 제85조)
Civil Execution Act, Article 86 (민사집행법 제86조)
Civil Execution Act, Article 87 (민사집행법 제87조)
Civil Execution Act, Article 88 (민사집행법 제88조)
Civil Execution Act, Article 90 (민사집행법 제90조)
Civil Execution Act, Article 91 (민사집행법 제91조)
Civil Execution Act, Article 96 (민사집행법 제96조)
Civil Execution Act, Article 98 (민사집행법 제98조)

Watch out for

A bid form cannot be withdrawn, changed, or exchanged after submission. Check the bid amount, deposit for the purchase offer, documents proving authority to act as a representative, and other materials before submitting them.
For an unregistered building, check the ownership and the building's lot number, structure, and area, and confirm that these match the details in the building permit or building notification documents.
A creditor whose claim requires a demand for distribution must complete the procedure by the deadline for demands for distribution. According to the case, even national tax claims attached after registration of the auction commencement order require a request for payment by that deadline.
An objection or lawsuit concerning an auction does not automatically stay the proceedings. Separately check whether an auction stay order is required and what the application requirements are.

Source cases

This guide was compiled by AI from the following Korea Legal Aid Corporation consultation cases (in Korean).

This guide is general legal information about Korean law, not legal advice for your situation. For a specific case, consult a lawyer or the Korea Legal Aid Corporation (call 132 in Korea).