The lien is the real right granted by way of security legally admitted as a matter or course if a given requirement is established regardless of the will of the parties to contract. It is to realize a 'principle of fairness that laws admit this syste...
The lien is the real right granted by way of security legally admitted as a matter or course if a given requirement is established regardless of the will of the parties to contract. It is to realize a 'principle of fairness that laws admit this system. But it has been positioned as the system never fair in practical affairs, becoming a serious problem. Especially, the auction procedures are delayed due to the allegation of the unfair lien in the practical affairs of the auction or rather the unjust lienor come to get profits in some cases.
The false/ exaggerated lien, the lien contrary to Prinzip von Treu und Glauben, and the allegation of the unjust lien by the claim of the lessee frequently come to occur because the deficiencies of this system are misapplied.
To improve the problem of this lien, it is necessary to investigate it by dividing it in terms of the substantial law and the procedural law.
Its problems in terms of the substantial law include the problem of unstability of the disclosure system, the problem of Abernahmeprinzip and the repayment of the highest priority and the like. Its problems in terms of the procedural law include the perfunctory investigation of the present situation, the deficiency of appraisal, the lack of public confidence of the list of objects for sale, the declaration of the right to the lien and the like.
These problems in terms of substantial and procedural laws cause the following reverse effects: the phenomenon of reduction of the successful price tendered; the delay of the transfer and eviction suit; the avoidance of participation in the bid due to the declaration of the lien; the seller's burden of transfer of secured receivables; the economic loss of the interested parties, national loss; and the like.
To resolve these problems and reverse effects, this study attempted to investigate the plan to improve the lien system in terms of the substantial law.
First, it is necessary to introduce the lien registration system.
Second, it is necessary to introduce the legal mortgage system.
Third, it is necessary to improve the problem of Abernahmeprinzip.
Fourth, it is necessary to apply the prior lien.
Improvements of the problem in terms of the procedural law are as follows: First, it is necessary to make a real investigation of the present situation.
Second, it is necessary to improve the system of lien appraisal.
Third, it is necessary to enhance the public confidence of the list of objects for sale.
Fourth, it is necessary to introduce the system of the tentatively named ‘lien decision injunction’.
Fifth, it is necessary to obligate a person to declare his lien.
Sixth, it is necessary to obligate the lien declarant to submit the deposit or deposit guarantee insurance.
The introduction of the improvements presented above would give an opportunity to attempt the procedural stability of the auction.
This study has some limitation in that it failed to make an in-depth investigation due to the lack of court precedents and material. But the types of unjust liens extend to the lien contrary to Prinzip von Treu und Glauben and the unjust lien by the lessee's claim as well as the false and exaggerated lien. And this study has its significance in that it attempted to investigate it by dividing it in terms of the substantial law and the procedural law, thereby laying the foundation for take a look at the improvements of the lien system in the auction procedure of real estate both in a long-term period and in a short-term period.