Tenants are experiencing great anxiety as damage from lease fraud is rapidly increasing. As cases of not receiving the deposit back continue to increase, real estate lawyer Eom Jeong-sook (Beopdo Law Firm) presented five essential checks on the 5th to avoid lease fraud.
First, the identity of the lessor and the condition of the house must be thoroughly confirmed at the pre-contract stage. You must check the mortgage set by the landlord or the market price of the house to avoid the risk of a tin-can-lease, and be especially careful about houses whose ownership is unclear or whether they are illegally built. Attorney Eom said, “It is essential to carefully check the condition of the house, including the lessor’s auction history and illegal construction,” and added, “The risk of lease fraud can be significantly reduced just by conducting a preliminary investigation.”
Using a standard contract when signing a contract is the first step to ensuring safety. Attorney Eom said, “It is also necessary to specify special provisions in the contract to protect the tenant’s rights. “For example, if a landlord establishes a mortgage, the tenant’s rights can be protected by adding a clause that allows the contract to be terminated,” he said. Because a double contract or a contract with a fake landlord is likely to cause damage to the deposit, identity verification by a licensed real estate agent and use of a standard contract serve as safety measures.
After signing the contract, receiving the move-in report and confirmation date immediately is an important step in securing legal defense. This is an important device that can take priority in deposit return lawsuits and strengthens tenants’ legal rights. Attorney Eom explained, “Reporting the move-in and confirming the date are steps that tenants must take to protect their deposit.”
Additionally, you should consider signing up for rental deposit return guarantee insurance. This is insurance in case the deposit is not returned due to problems with the landlord, and provides additional safety measures to the tenant. Attorney Eom explained, “Lease deposit return guarantee insurance is an important means for tenants to protect their deposits even in unexpected situations.”
Lastly, a thorough investigation is necessary before signing the contract to prevent malicious actions by the landlord. Jeonse fraud can occur in a variety of ways, including malicious actions by the landlord. These include tin can leases in which the tenant’s deposit and the landlord’s debt are excessively intertwined, contracts with fake landlords, and cases where monthly rent is disguised as a jeonse. Attorney Eom emphasized that this type of fraud must be prevented through sufficient investigation before signing a contract.
If damage occurs, legal action must be taken quickly. It is important to maintain possession for the return of the deposit and to maintain the confirmed date and move-in status, and if necessary, it is effective to simultaneously file a criminal complaint for fraud and file a lawsuit for the return of the deposit. Attorney Eom added, “If you have been a victim of a lease fraud, you must respond proactively by filing both civil and criminal lawsuits,” and added, “It is necessary to find a practical way to recover from fraud damage through legal procedures.”
Lastly, Attorney Eom emphasized, “The most important way to avoid lease fraud is prevention,” and “Thoroughly verifying the credibility of the landlord and faithfully following the post-contract procedures are the basics of protecting tenants.”
Song Chi-hoon, Donga.com reporter sch53@donga.com
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