‘Tongtong jeonse’ fraud damage increases rapidly… What are the types and prevention methods?

[Anchor]
Cases of not receiving rental deposits due to lease fraud are increasing.
Recently, a case was reported where one person committed fraud worth 48 billion won.
Including this case, the damage in Gwangju and Jeonnam alone in the second half of the year amounted to 55 billion won.
Today on ‘Issue Talk’ we will talk about the types of lease fraud and how to prevent them with lawyer Kim So-yul.
welcome.

First of all, it is called a ‘canny jeonse’ scam.
Could you please explain what it is?

[answer]
When a landlord intentionally or colludes with a licensed real estate agent to create a contract that prevents the tenant from returning the deposit, it is called a lease fraud or a tin-can fraud.
In the case of newly built villas where the market price is not established, they sign a lease contract with an inflated deposit, hand over ownership and disappear, or when real estate prices fall like now, there is a tin lease that occurs when the lease deposit is higher than the sale price.

[Anchor]
How is that possible? Is there an institutional loophole?

[answer]
In fact, it is true that tenants lack information.
So, a lot of it is derived from the difference in access to information.
The biggest reason for such cases is that the tenant does not know the appropriate rental price on his own, does not know whether he is in arrears with the landlord, and is not sure how much the senior deposit is set. Secondly, in a situation like now where real estate prices are falling, landlords weigh profits and losses and sometimes come to the conclusion that it is better to give up the house than to return the deposit.

The third is to take advantage of loopholes in counterattacking power.
According to the current Housing Rent Guarantee Act, the counter is issued at midnight on the 1st.
So, since it takes effect the next day, if a lease contract is signed on that day and the landlord sets up a lien on the house and takes out a loan using the collateral, the tenant will eventually be pushed to the bottom of the list.

[Anchor]
So, ultimately, I think the policies for tenants, that is, people who rent houses, should be more thoroughly supplemented. What do you think?

[answer]
So, the Ministry of Land, Infrastructure and Transport recently issued a press release about a tenant protection system.
So, you said that the biggest cause is the lack of tenant information.
So, we are building something called a ‘self-diagnosis safe charter app’.
This will be released in January next year.
It is said that within this app, information such as the appropriate rent for the residence you wish to move into, information on malicious landlords, and information on whether it is an illegal or unlicensed building is also provided here.
Management of rental business operators has been strengthened, and since this happens a lot in the case of new villas, a fair price calculation system for new villas is also being established.
And legally, as we mentioned earlier, the amendment to the Housing Lease Protection Act has been announced as legislation.
Therefore, the tenant's right to request consent to request the landlord to provide information about the senior deposit has been stipulated, and the landlord has been revised to make it obligatory to agree to this.

Second, you can ask your landlord for a tax payment certificate.
This is done to confirm tax payment or whether national or local taxes are delinquent, and thirdly, the top priority repayment amount is adjusted upward for small tenants.
Currently, in the case of Gwangju Metropolitan City, it is less than 70 million won, but it is being adjusted upward to less than 85 million won, and the priority repayment amount is less than 23 million won, but it is increased by 5 million won to less than 28 million won.
In line with this, the standard housing rental contract is also being revised, and in order to prevent fraud using that opposing force, it is stipulated that the landlord is prohibited from establishing a lien on the house until the day after the tenant decides to report the move-in.

[Anchor]
As mentioned earlier, I think it is important to carefully examine the contract from the start.
So, what are some things tenants should carefully consider before signing a contract?

[answer]
What is more important than the legal and institutional systems is for tenants to carefully inspect the property.
You should visit several real estate properties to check information on surrounding market prices, and then carefully look at the real estate register to check information about the senior deposit.
Since you need to check whether it is an illegal building, check the building ledger, and if the sale price and the lease price are similar, the lessor is often registered as a rental business.

In such a case, it is mandatory to sign up for warranty insurance, so please check whether the lessor and the landlord are the same person, and even if they are the same person, check their ID cards. If there is a separate building manager, you should also carefully look at the extent to which they have been delegated by the landlord.

[Anchor]
You talked about a number of things that need to be carefully looked into. Even though you paid such attention, what should you do if you do not receive the deposit or the house is put up for auction?

[answer]
In fact, if you hide like this, there is no way you can find it.
Then, as consumers, we have no choice but to rely on the police investigation.
Once the police files a complaint for fraud and, fortunately, the whereabouts are identified, a civil lawsuit may be possible, but even if possible, there are many cases where recovery will not be possible.
So, a one-stop support center was recently established for victims of such jeonse fraud.
So, they say they provide emergency loans at low interest rates for people who haven't received a deposit, and provide temporary housing for tenants who don't have a place to live right now.

[Anchor]
Lastly, could you please tell me what kind of punishment is possible for this kind of planned real estate fraud and how much responsibility can be imposed?

[answer]
So, in terms of criminal law, ‘fraud’ or, depending on the type, ‘forgery of private documents’ are also possible.
Fraud is a very serious crime punishable by up to 10 years in prison or a fine of up to 20 million won under the Criminal Act.
If a licensed real estate agent participates in this act, he or she may be considered a co-principal or accomplice to the crime of fraud. Separately, under the Licensed Real Estate Agent Act, a licensed real estate agent may be subject to imprisonment for up to 3 years or a fine of up to 30 million won, and may even be subject to suspension of qualifications or cancellation of registration, in addition to separate liability for damages.

[Anchor]
Since it is truly a crime targeting the common people, it seems that strict punishment is needed.
I'll listen to today's story here.
Thank you.

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