I'm afraid of lease fraud, so I moved to a monthly rent, but is this also a scam?

A newlywed couple who fell victim to a rental scam and signed a monthly lease has revealed their astonishing story.

 

The newlywed couple's house, which they rented with a monthly rent instead of a jeonse deposit, was a 25-pyeong newly built officetel with a 30 million won deposit and a monthly rent of 430,000 won.

 

They had heard of jeonse scams well, but they had hardly heard of monthly rent scams and did not know about them.

 

They, who were enjoying a dreamlike newlywed life, received a shocking public auction notice just three months after moving in.

 

I found a house through a licensed real estate agent and carefully checked the registration certificate, but this kind of thing happened.

 

The registration certificate included the word "trust," but the real estate agent said, "It's safer because it's managed by a trust company."

 

They said they made a deal.

 

It turns out that the officetel had a debt of 6 billion won.

 

A collateral trust is when the homeowner transfers ownership of the building to a real estate trust company and borrows money from a bank.

 

The ownership of the building remains with the trust company until the debt is repaid.

 

Therefore, the trust company will hold all rights such as leasing authority and disposal authority.

 

However, if the landlord enters into a contract with the tenant without the trust company's consent, the security deposit will belong to the landlord.

 

Trust companies can request tenants to vacate the house due to illegal occupancy and cannot receive legal protection.

 

You find yourself in a situation.

 

If the auction proceeds and you win the bid, it will be considered illegal occupancy, and you will not be able to recover your deposit and will have to leave the house.

 

Amid the increasing interest and actual transaction volume in monthly rent deals due to the fallout from lease fraud, a warning about 'monthly rent fraud' has been issued.

 

According to Big Data Platform Asil on the 25th, the proportion of monthly rent transactions in Seoul this month is 38%, up 5 percentage points from 33% the previous month.

 

The transaction ratio for sales and jeonse was 10% and 51%, respectively.

 

According to the Seoul Real Estate Information Plaza on this day, the monthly rent transactions in Seoul in December of last year totaled 8,871 cases, compared to 7,028 cases in September of the previous year.

 

It has steadily increased since then. In terms of trading volume, it has maintained around 3,000 transactions consistently since September of last year.

 

Researcher Kim Ji-yeon from Real Estate R114 stated, "The suppressed purchasing demand due to comprehensive loan regulations is choosing to remain in the rental market."

 

Amidst this, due to the fallout from the 2022 jeonse scam and the rise in jeonse prices, there is a shift toward the monthly rent market.

 

He said that the demand is increasing.

 

Professor Seo Jin-hyung of Kwangwoon University Department of Real Estate Law said, "As the guarantee ratio decreases, tenants are lowering their deposits and some..."

 

It is expected that there is a possibility of shifting to a deposit-based monthly rent that covers the rent burden.

 

 

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If the homeowner receives rent while having a debt in the trust under a collateral trust arrangement

 

What does it mean that the landlord takes the deposit and the trust has the right to ask the contractor to leave?

 

Is this a crappy law? I came to a monthly rent to avoid a lease scam, but I feel really sorry for the couple who was scammed out of their monthly rent.

 

There are many people suffering like this, really... it's a big problem.

 

Delegate more direct responsibility to the real estate agent to better handle situations like this when issues arise.

 

I hope you have definitely considered it. It's really fascinating how real estate always seems to be leaving.