How should I respond to real estate jeonse fraud...?

Hello. This is an attorney experienced in real estate cases at Daeryun Law LLC.

The situation you described appears to be one of the typical types of real estate jeonse fraud.

If an excessive mortgage to secure a maximum amount has already been established and contact with the landlord has been cut off, there is a high likelihood that the matter will develop not into a contractual dispute but into a criminal fraud offense.

In the case of real estate jeonse fraud, a prompt response is the key to recovering your losses. Please keep the following steps in mind.

1. Immediately check the certified copy of the register and the lease agreement

You must review the certified copy of the register to check for a mortgage to secure a maximum amount, a provisional attachment, and any transfer of ownership registration. If the amount of the mortgage exceeds the jeonse deposit, the holder of the security interest already has priority, so recovering the deposit becomes difficult. In addition, you must check whether the landlord is the actual owner or merely a nominal titleholder.

2. Report to the police and file a criminal complaint on suspicion of real estate jeonse fraud

If the landlord entered into the jeonse contract despite having no intention from the outset to return the deposit, this constitutes the crime of fraud under the Criminal Act. The victim can file a criminal complaint for jeonse fraud with the competent police station and must also submit materials that prove the landlord's intent and any false statements (the contract, bank transaction records, text message records, etc.).

If necessary, an attorney experienced in real estate cases can represent you in preparing statements, organizing evidence, and responding to the investigative agency.

3. Check whether a deposit return guarantee with the Korea Housing and Urban Guarantee Corporation (HUG) has been obtained

If HUG guarantee insurance was obtained at the time of concluding the contract, a claim for the return of the deposit is possible upon the landlord's default. Even if it was not obtained, there is room for relief through the ex post facto guarantee system if certain requirements are met, so you must confirm the possibility through a consultation with an attorney experienced in real estate cases.

4. Secure opposing power by applying for an order for registration of the right of lease

If the landlord is unreachable, you must maintain your rights as a lessee through an order for registration of the right of lease.

This can be applied for at the court with simple documents, and once the registration is completed, you can preserve your opposing power and your right of priority repayment. Even if the house is later transferred to a judicial auction, you can receive priority repayment of part of the deposit.

5. The victim relief procedure and the need for legal assistance

Under the 「Special Act on Support for Victims of Jeonse Fraud」, victims of jeonse fraud can apply for housing stability, loan support, and a suspension of the auction procedure, among other things.

However, since the legal requirements are strict and the documents to be submitted are complex, it is important to respond systematically, from the application for recognition as a victim to a lawsuit for the return of the deposit and compulsory execution, with the assistance of an attorney experienced in real estate cases.

At our firm, attorneys experienced in real estate cases and attorneys experienced in criminal cases collaborate to represent clients throughout the response procedures, including complaints for real estate jeonse fraud, civil claims for damages, and applications for provisional injunctions.