“Temporary Special Law Provides Support for Victims of Charter Fraud in Real Estate Market”

As cases of charter fraud victims are pouring in across the country, the government has enacted a temporary special law to support victims of charter fraud. In the real estate market, both evaluation as the best response and concerns over effectiveness are coming out at the same time.

According to the real estate industry on the 29th, the Ministry of Land, Infrastructure and Transport recently announced the ‘Special Act on Support for Victims of Charter Fraud and Housing Stabilization’. It contains the legal basis for government measures to help victims of charter fraud. Considering that charter contracts are usually for two years, this special law is also temporarily enforced for two years.

In the future, victims of jeonse fraud will be able to exercise their right to purchase the house they live in, as well as to suspend or suspend auctions and public auctions. In addition, victims of charter fraud are regarded as the same qualifications as those affected by disasters and disasters, and up to 1.02 million won per month for one-person households is paid for living and housing expenses for six months. Low-interest loans and rental housing are also provided.

Specifically, when a house is won through an auction or public sale, financial and tax support is provided. When a stepping stone loan is executed to raise funds for a home purchase, a grace period of 3 years is applied to the maximum requirements (limit of 400 million won, interest rate of 1.85-2.7%, maturity of 30 years). The income standard must be less than 70 million won.

Special Bogeumjari Loan (Limit of 500 million won, interest rate of 3.65-3.95%) with no income standard is also available. Loan regulations such as mortgage loan ratio (LTV) and total debt repayment ratio (DSR) will also be temporarily eased for one year. Acquisition tax and property tax are also exempted or reduced.

If you give up the right to purchase, the Korea Land and Housing Corporation (LH) purchases the house and rents it to the victim as a purchased rental house at a low price compared to the market price. If it is difficult for LH to purchase a fraudulent house on a charter basis, it grants priority to move into a public rental house close to the victim’s living radius.

Experts generally reacted positively. Although there were no special benefits such as refund of deposit at the public level, it was determined that a practical plan was prepared to reduce the risk of tenant eviction by preparing comprehensive pan-governmental measures so that victims could continue to live in the house where they lived.

Seo Jin-hyung, professor of business administration at Kyungin Women’s University, said, “Of course, it would be best for victims of charter fraud to make up for the entire deposit, but it is desirable in that the state has come up with a solution to prevent tenants from being driven to the streets through a special law.” It is expected that there will be an effect of offsetting the damage to the lessee.”

However, some point out that it is difficult to be recognized as a victim of charter fraud. The targets of this special law support are ▲Move-in notification and securing a fixed date ▲Auction or public auction execution rights or progress for rental housing ▲Satisfaction of common house standards considering area and deposit ▲Initiation of investigation, etc. Victims who meet all six requirements, such as fear of becoming a victim and fear that a significant amount of the deposit will not be returned.

It is expected that there will be controversy over the interpretation of the Ministry of Land, Infrastructure and Transport’s charter fraud damage support committee as the criteria for some items, such as the number of victims or the amount of the deposit, are ambiguous. Even in cases where the deposit amount is lower than in the previous contract due to the housing market contraction and oversupply issues, or in cases where it is difficult to reveal that the landlord intended to commit fraud from the beginning, it is unlikely to receive the benefits of the special law, so it may be a way out for fraudsters.

In fact, in the case of suspected damage from the Dongtan officetel charter fraud in Hwaseong-si, Gyeonggi-do, it is difficult to determine that it is a planned charter fraud, considering that the landlord and his wife went through bankruptcy procedures for non-payment of taxes and sent a message to the tenants asking them to register the transfer of ownership of the officetel, causing controversy. is spreading

The National Countermeasure Committee for Victims of Charter Fraud and Canned Charter Rentals also held a press conference in front of the National Assembly building on the 28th and announced its position that it could not accept the special law proposed by the ruling party. They insisted that the bill be scrapped, saying that it was merely a showpiece.

Lee Kang-hoon, chairman of the People’s Livelihood Economy Committee of Lawyers for a Democratic Society, said, “Victims of charter fraud will continue to appear in the future, but setting the deadline for the special law is an act of ignoring the suffering of the victims.” Since it seems likely, we must also come up with a plan for victims who are not eligible for relief.”

Criticism is also raised that there is a lack of fairness from some. It is explained that if the perception that the government takes responsibility even if damage occurs after moving into a problem house without careful consideration is fixed, the probability of being abused for other crimes increases. In addition, dissatisfaction arose everywhere because the government had never offered a large-scale remedy for voice phishing crimes that bruised society.

There are also growing voices that LH’s budget is focused on supporting damages from charter fraud, which can act as reverse discrimination by preventing other projects from proceeding. In other words, the financial resources to be used for policies for consumers who are not victims of charter fraud are bound to naturally decrease.

Ham Yeong-jin, head of Jikbang Big Data Lab, said, “With the expiration of the charter fraud contract concluded in the past, constant monitoring of the related market is necessary as damage from charter fraud can continue for the time being.” As much as possible, education on the use of special contracts in standard lease agreements and deposit escrow systems should be introduced.”