Page title background (PC version)Page title background (mobile version)

Deals & Cases

Return of deposit

Real Estate Attorney Assistance Case | Full Return of the Deposit for a Client in a Jeonse Fraud Case Through a Jeonse Fraud Attorney's Assistance

The client who sought out the real estate attorney decided to file suit after being unable to recover part of a jeonse deposit, and requested assistance from a jeonse fraud attorney who had handled jeonse fraud and real estate cases.

CONTENTS
  • 1. The Client Who Sought a Real Estate Attorney
    • - Why the Client Became Involved in Jeonse Fraud
  • 2. Jeonse Fraud Explained by a Real Estate Attorney
    • - What Is Jeonse Fraud?
    • - What Are the Types of Jeonse Fraud?
  • 3. Three Areas of the Attorney's Assistance
    • - The Jeonse Fraud Attorney's Representation 1. Clear Intent to Move Out
    • - The Jeonse Fraud Attorney's Representation 2. The Landlord's Attitude
    • - The Jeonse Fraud Attorney's Representation 3. The Obligation to Return the Deposit
  • 4. Result of the Attorney's Assistance: Full Return
    • - When Involved in a Jeonse Fraud Case

1. The Client Who Sought a Real Estate Attorney

Daeryun real estate specialist attorney jeonse fraud return of deposit case study

The client of the real estate specialist attorney decided to file a lawsuit after failing to recover part of a jeonse deposit of 200 million won, and with the assistance of a specialist attorney who has handled many real estate lawsuits related to jeonse fraud, obtained the return of the full amount.

Why the Client Became Involved in Jeonse Fraud

The client of the jeonse fraud attorney entered into a contract for a house on the condition of paying a 200 million won deposit and residing in the house for two years.

Before the contract, the client learned that the house was subject to a large mortgage and hesitated to enter into the contract.

However, the brokerage assistant persuaded the client by saying that a special clause would be added stating that the brokerage office would take responsibility for ensuring the return of the deposit.

The client also proceeded with the contract upon being told that, because the office was enrolled in the mutual aid association of the Korea Association of Realtors, any loss could also be compensated.

However, two years later, the lessor failed to return part of the deposit, citing financial circumstances, and the client requested the assistance of the jeonse fraud specialist attorney in order to recover the remaining deposit.

2. Jeonse Fraud Explained by a Real Estate Attorney

Case in which a real estate specialist attorney assisted with a jeonse deposit return lawsuit

As with the client of the real estate specialist attorney, cases of jeonse fraud often occur because tenants are unaware of the landlord's debts or of a mortgage on the building.

So what does jeonse fraud mean?

What Is Jeonse Fraud?

Jeonse fraud is a crime established when parties involved in the jeonse contract, such as the lessor, the building owner, or the broker, intentionally deceive the tenant and fail to return the jeonse deposit.

In addition, situations in which it can be reasonably suspected that the lessor had no intention of returning the deposit may also be included in jeonse fraud.

What Are the Types of Jeonse Fraud?

Jeonse fraud has been spreading harm to victims through various methods.

▶ Fraud arising from the lessor's debt

A building whose value is largely sustained by tenants' deposits or by debt, because the lessor has a large amount of debt, is referred to as a so-called underwater house.

If the contracted building is an underwater house and the deposit is subsequently not returned, this may constitute jeonse fraud.

▶ Fraud using trust real estate

Where the lessor has placed the house in trust as collateral, ownership of the real estate belongs to the trust company.

Therefore, if a contract is concluded without the agreement of the trust company, the contract itself may be void, so verification is critical before the contract.

▶ Fraud by an illegal broker

Recently, methods of jeonse fraud have been detected in which the lessor, a licensed real estate agent, and an assistant induce an underwater jeonse contract.

Illegal acts have also been found, such as operating an office by borrowing another agent's registration certificate even after filing a notice of business closure.

To guard against illegal brokers, it is advisable to confirm that the person is a duly registered licensed real estate agent before proceeding with a transaction.

3. Three Areas of the Attorney's Assistance

After hearing the client's account, the real estate law attorney established a strategy to assist the client together with attorneys who have handled numerous real estate cases.

In addition, by analyzing the relevant precedents and statutes, they prepared measures that could respond to the jeonse fraud.

The Jeonse Fraud Attorney's Representation 1. Clear Intent to Move Out

The client clearly expressed an intent to vacate three months before the expiration of the lease.

However, although the lessor received notice of this intent to vacate, the lessor failed to prepare the deposit.

Accordingly, the client argued that a clear intent to vacate had been expressed, and that the lessor had failed to prepare the deposit despite a sufficient preparation period.

The Jeonse Fraud Attorney's Representation 2. The Landlord's Attitude

The client contacted the lessor several times, but the lessor intentionally avoided the client's contact.

Unable to wait any longer for a response, the client eventually prepared and sent a certified mail to the lessor.

On this basis, it was argued that the lessor had intentionally avoided the client's contact in order to avoid returning the deposit.

The Jeonse Fraud Attorney's Representation 3. The Obligation to Return the Deposit

Although the landlord had become obligated to return the deposit to the client, the landlord did not perform this obligation.

The brokerage assistant also failed to honor a special agreement to ensure repayment of the client's deposit.

Accordingly, the attorney argued that not only the landlord but also the brokerage assistant had an obligation to return the client's deposit.

4. Result of the Attorney's Assistance: Full Return

Having heard the argument of the real estate attorney, the court rendered a judgment ordering the lessor, the brokerage assistant, and the Korea Association of Realtors to jointly pay the entire remaining deposit.

The client, who had been unjustly caught up in jeonse fraud and had nearly failed to recover the deposit, conveyed deep thanks to the jeonse fraud attorney.

When Involved in a Jeonse Fraud Case

This was the story of a client who nearly failed to recover the deposit due to jeonse fraud but was able to recover the full deposit with the assistance of a real estate specialist attorney.

As this case shows, with jeonse fraud one cannot feel secure simply because there were no problems before the contract, and because harm can arise even after the contract, particular caution is required.

At Daeryun LLC, attorneys who have handled various cases in the real estate field provide tailored strategies based on legal analysis, suited to each client's circumstances.

If you need legal assistance due to jeonse fraud, please request help from a real estate specialist attorney through a 🔗legal consultation reservation.

부동산전문변호사

This content is based on actual case studies of Daeryun Law LLC with some adaptations, and the copyright belongs to our firm.
Unauthorized reproduction, duplication, or distribution and other copyright infringements may result in legal action under applicable laws.

Related Information
Background

Daeryun's Key Strengths

Daeryun's exclusive AI · IT
litigation strategies
Over 260
key members
1,200+ cases
handled monthly

* January 2026 Bar Association Transit Permit Issuance Criteria

*Complies with Korean Bar Association Advertising Regulations Article 4 Paragraph 1

Attorney
Legal consultation booking

All consultations are conducted by specialized lawyers after reviewing the case. It is carried out on a reservation basis to ensure a professional process.We encourage you to make an early reservation for consultation, and request adherence to the scheduled time. We will do our best to provide a satisfying consultation.

Phone
consultation 1800-7905

Available 24/7, 365 days
for consultation requests

Phone booking

KakaoTalk
consultation

KakaoTalk channel

Daeryun Law Firm Attorneys

KakaoTalk booking

Online
consultation

We provide tailored
legal services.

Online booking
Quick Menu

KakaoTalk