This study is to discuss the lien in real estate auction. Lien is a kind of secured real right allowing the lien holder to occupy other's property until the debtor repay his debt. Lien is the real right granted by way of security providing by law which naturally occurs when conditions are settled without declaration of intention. This is approved from the rules of equity so the one who has lien forces debtor to implement the obligation by detaining the objects. Although lien is a kind of secured real right, it does not ensure preferred repayment. But actually it does guarantee first have repayment by retaining the real estate until the debtor repay his debt. Lienor can claim his right against anyone that acquires the property from the debtor.
Lien has a preferential repayment effect to other secured real right even though it is not announced publicly. It is regarded that a real estate lien is established by only occupation without registration. Especially in the case of real estates, lien does not need the way of official announcement such as registration as it is a real right glinted by way of security, so this will be regarded unfair as the third one who took over the object gets the unexpected damage. This problem has been criticized as being against the principle of establishment of a real property right and public announcement, which intend to protect a right by a order of establishment of a real property right. Therefore, in the real estate auction it is difficult to know if the lien is real or false. As a result, there are many cases one makes abuse or misuse of the lien. This causes the buyer to give up bidding and causes unexpected damage to the creditor.
This study presented the following scheme for improving the problem of this lien system. To prevent such problems, the law on real estate registration system needs to be revised to allow registration of real estate lien. And the lienor should be obligated to report his right to the execution court. So it makes it possible to forecast whether the lien has been established. Also, exemption of a buyer's additional responsibility to reimburse to a lienor can secure participation on auction at a appropriate price. It is necessary to introduce the deposit system. In case the lienor reports his rights to the execution court and in case he is required to deposit the security money, it is expected that the report of false liens will reduce as the number of liens reported reduces. Accordingly, interests of a prior ordered creditor, a lienor, a buyer, an obligator can be reasonably adjusted.
For radical improvement of problems caused by this lien system, it is thought that more studies and trials to lien should be done.