8 Things you MUST check to Avoid Jeonse Fraud 

Jeonse (security deposit) fraud, where the deposit is not returned

due to existing liens against lessor’s rights such as a foreclosure, tax delinquency, etc. 

or jeonse prices that are excessively higher than the sales price!

Let's take a look at 8 things you must check to avoid jeonse fraud!

8 things you must check before signing a jeonse contract

1. Check the proper jeonse price

▶ 서울시 전세가격상담센터

(※ A center where professional appraisers consult on the appropriateness of the jeonse contract price compared to the sales price with the consideration of the loan set amount compared to the current real estate market price, total deposit amount, etc.)

○ Candidates: Those who are to sign a jeonse contract for a property in Seoul

○ How to Apply: Apply online at the Seoul Real Estate Information Square (land.seoul.go.kr)

○ Consultation process: After applying online, application result will be sent via text →Telephone consultation with an appraiser within 2 business days 

○ Inquiry

- Consultation on jeonse price

Inquiries for application: Seoul Land Management Division 02-2133-4675

Inquiries for results: Korea Association of Property Appraisers 02-3465-9882

- Legal consultation related to housing lease

 Korean Legal Aid Corporation: Tel. 132

 전월세종합지원센터: Tel. 02-2133-1200~8

(※ A center that provides counseling and support for all matters related to housing and deposit recovery and to protect tenants’ housing rights)

2. Check the percentage of jeonse price

○ If the percentage of jeonse price (jeonse price/sale price) exceeds 80%, it is likely a red flag!

3. Check the Certified Copy of Register 

① Check whether there is excessive loan such as a mortgage/collateral security on a rented house

② Check whether there are existing liens against lessor’s rights such as property seizure, prohibition of disposition, etc.

③ Check whether the rental house is registered as a trust and the details of the trust register

- Check by visiting the registry office, using the Internet registry office (iros.go.kr) or the automated civil application issuance machine!

4. Check the building register

○ Check whether the building is registered as an unauthorized or an illegal building, and whether the use of a building is for housing

○ Information available on GOV.KR (www.gov.kr), mobile devices, etc.

- It is NOT a housing property if there is a ‘neighborhood living facility’ in the building register!

Be sure to check if the real estate is a residential building!

5. Check the lessor’s tax delinquency, etc.

▶ Application for inspection of delinquency in national tax liability of a lessor

If the lessor has delinquency in national tax liability, there may be no funds left to return rental deposit when the building is sold through a public auction!

○ Application period: Before signing the lease contract, or from the date of signing the lease contract to the start of the lease period

○ How to apply: Visit the National Tax Office with the application form for inspection, identification card, and lease contract, etc. → Application for inspection

- If the rental deposit exceeds KRW 10 million, it can be viewed without the consent of the lessor after signing the lease contract

* Consent from the lessor is required before signing a lease contract or in the case of a contract with a deposit of less than KRW 10 million

6. Check the legitimacy of real estate agents and lessor’s identity

- Check whether the related real estate agent is operating with a legal realtor’s license after registration of credentials (it can be checked at the Korea Association of Realestators)

- Check whether the contracting party is the same as the owner on the Certified Copy of Registry or the building register 

7. Check the registration of the brokerage property

- Check whether the house is registered with multiple real estate agencies in the region

8. Check the guarantee insurance

- Check whether it is possible to apply for a guarantee provided by HUG (Korea Housing & Urban Guarantee Corporation), etc.

전월세종합지원센터

(※ A center that provides counseling and support for all matters related to housing and deposit recovery and to protect tenants’ housing rights)

○ Consultation service: Full-time professionals such as lawyers, judicial scriveners, and licensed real estate agents provide free consultation services related to jeonse fraud or high-risk jeonse

○ Guidance for issuance and receipt service of the jeonse fraud victim confirmation: Lessees who have received a confirmation as the victims of jeonse frauds can qualify for the government’s low-interest loans (interest rate of 1-2%) and emergency housing support

○ Location: Counseling Room on the 1st FL, Seosomun Annex Building 1, Seoul City Hall (15 Deoksugung-gil, Jung-gu, Seoul)

○ Tel. No.: 02-2133-1200~8

○ Operating hours 

-Weekdays: 9:00 a.m. - 8:00 p.m.

-Weekends/holidays: 10:00 a.m. - 4:00 p.m.

*Excluding lunch time (12:00 - 1:00 p.m.)

Seoul Foreign Residents Support Center

○ Consultation and translation services: Lawyers and multi-language counselors provide free consultation and translation services (Korean, English, Chinese, Vietnamese, Mongolian, Russian, Uzbekistan, Urdu)

○ Tel. No.: 02-2229-4900

○ Operating hours 

- Weekdays/Sunday: 9:00 a.m. - 6:00 p.m.

*Excluding lunch time (12:00 - 1:00 p.m.)

- Closed on Saturday

*Source: ‘Seoul in My Hand’ News by Seoul Metropolitan Government

*Translation: Seoul Foreign Resident Center Tel. 02-2229-4907 (2023. 6. 16.)