The Ministry of Land, Infrastructure and Transport announced on the 28th that it has published a 'Comprehensive Guide for Preventing Jeonse Fraud' containing essential points to check during the jeonse contract process and major types of jeonse (fraud) damage to prevent prospective tenants from becoming victims.
This guide compiles precautions for every stage of the entire contract process, countermeasures in case of damage, and types of damage based on actual victim cases. It also provides a 'Checklist for Safe Jeonse Contracts' as an appendix.
The checklist introduces three key points that prospective tenants must check before, during, and after the contract process to prevent damage, known as the '3-3-3 Rule for Safe Contracts.'
According to the 3-3-3 Rule for Safe Contracts, before the contract, it is essential to research the local market prices sufficiently and carefully verify the rights related to the dwellings to be rented through the full certificate of registered matters (land registration certificate). It is also important to inquire through a guarantee company whether it is possible to subscribe to jeonse guarantee insurance.
During the contract, it is necessary to check the normal business status of the certified real estate agent through platforms like V World. It is important to thoroughly examine whether the contracting party and the landlord are the same person through the land registry and identification documents. It is safer to use a detailed contract such as the standard rental contract for dwellings or the contract provided by the Korea Association of Realtors (KAR).
After the contract, it is crucial to immediately report the rental contract or obtain a confirmed date and recheck the land registry before paying the remaining balance to examine any changes in the rights relationships. Completing the move-in report on the day of the move is also important.
This checklist is a follow-up action from the government meeting chaired by the Prime Minister regarding current national issues. It was created in collaboration with relevant agencies, including the Korean National Police Agency and the Korea Association of Realtors (KAR). The damage prevention checklist consists of essential points to check for each stage of the jeonse contract process, condensed into one page, so that prospective tenants can carry it. It includes a QR code at the top to download the guide.
The ministry has enabled citizens to receive physical copies of the checklist when they visit community centers, banks, and real estate offices for matters related to jeonse contracts. It is also continuously seeking cooperation from private enterprises and public organizations to ensure that the checklist is consistently displayed on main screens of online platforms like Zigbang, Dabang, Hanbang, Naver Real Estate, and Real Estate Tech.
Additionally, the ministry plans to incorporate aspects related to fraud prevention and the checklist in the legal training for certified real estate agents. It is closely consulting with the Korea Association of Realtors (KAR) so that agents can check the items on the checklist with prospective tenants.
Lee Seong-su, head of the investigation support team at the Ministry of Land, Infrastructure and Transport, said, 'As preventing damage has become even more important following the recent revisions to the law for victims of jeonse fraud, I hope that citizens will carefully check the essential items through the fraud prevention guide and checklist when looking for a jeonse house to avoid unfortunate damages.'