Mr. Hong, an office worker in her 20s, tried to book an officetel located in Mapo-gu, Seoul last month, but gave up because the rental price was not much different from the sale price. It was because I was worried that it might not be a controversial can charter. Concerned, he signed a contract for a rented room in another neighborhood that is 50 million won more expensive. Mr. Hong confessed, “Recently, jeonse fraud has been rampant, so I was stressed throughout the whole search for a house.” .
The aftermath of the 2nd Lease Act, which was unreasonably passed by the previous government, is raising conflicts in the cheonsei and monthly rental markets. Charter fraud due to soaring jeonse prices and jeonse loans made by rule-of-thumb has emerged as a social problem, and the right to apply for contract renewal is acting as an irrational legal system that fosters distrust between landlords and tenants. Experts point out that there is a need for fundamental improvement in the cheonsei and monthly rental system, which exposes loopholes everywhere.
▶”I’ll give you guarantee insurance” Reassurance and charter fraud = The can charter charter and subsequent charter scams, which have recently come under fire due to social problems, have clearly exposed the limits of charter guarantee insurance. This is because charter fraud continues even though the charter guarantee insurance is in place.
Jeonse guarantee insurance is a system in which, if the landlord does not return the deposit after the contract expires, the Housing City Guarantee Corporation (HUG) pays the deposit to the tenant and charges the landlord for the deposit.
However, in the recent case of charter fraud, it is clear that the landlord abused it. This is because, after reassuring the tenants that they would provide guarantee insurance, only the tenants were harmed when it was eventually found to be a canned jeonse.
In particular, in the case of Mr. Kim, the so-called ‘villa king’, who died without returning the jeonse deposit despite having 1,139 villas and officetels in the metropolitan area, 614 tenants were covered by guarantee insurance, but 139 people had their deposits returned by the end of last year. It is known that only
The deposit returned by HUG on behalf of the landlord is rapidly increasing from ▷ 283.6 billion won in 2019 ▷ 441.5 billion won in 2020 ▷ 504 billion won in 2021 ▷ 924.1 billion won in 2022, but the process of getting the deposit back is not easy. One victim of charter fraud said, “It took about five months to get the deposit,” and “I was very stressed because this process consumed not only time but also energy.”
Experts suggest that proactive measures and strengthening of tenant rights are necessary. In the current guarantee insurance system, subscription is made after a charter contract, so it is not known in advance whether it will be a requirement for insurance subscription. Kwon Dae-jung, a professor of real estate at Myongji University, explained, “We need to review the property in advance and let the tenant know how much protection it can afford, so that the tenant can sign a contract.”
It was also pointed out that the current public price recognition rate of 140% should be lowered. In the case of newly built villas where it is difficult to check the current market price, HUG applies the guarantee subscription standard to 140% of the official price, which is why there are cases in which landlords raise the jeonse price according to the ratio. Professor Kwon evaluated, “In a situation where it is difficult for HUG to inspect all items on-site, the public announcement price of 140% as a guarantee subscription standard is too high.”
▶The Lease Protection Act is again sparked by conflict = As the rental price has fallen, disputes between landlords and tenants are being witnessed in various places even over the ‘right to apply for contract renewal’ as stipulated in the Housing Lease Protection Act. In fact, criticism is pouring in that the system is instigating conflict.
Article 토토사이트 6(2) of the Lease Protection Act amended in 2009 allowed the lessee to unilaterally notify of termination of the contract only when the contract was renewed through implicit renewal. However, in the Lease Protection Act, which was revised again in 2020, the provisions of Article 6, Paragraph 2 were also applied mutatis mutandis to contracts concluded through the right to request contract renewal. In other words, if a formal contract is signed with the owner through a 5% renewal contract, the tenant can request the return of the deposit from the landlord at any time for reasons such as moving, even if the contract period remains.
As this clause makes it easier for tenants to change their lease, there are also tenants who make unreasonable demands on the landlord. Mr. B, who is renting a house in Mapo-gu, recently signed a lease renewal contract for 400 million won, but was informed that the lessee had demanded, “I will leave if 50 million won is not reduced” through the real estate agent. Because this lessee also used the 5% renewal request right, he made this request by citing an early termination clause.
There are also cases where landlords are struggling to return hundreds of millions of won in deposits. One landlord lamented, saying, “It is difficult to return the deposit because there is no loan,” and “I have asked for the tenant’s understanding to look at the situation, but at this rate, I have to think about even an auction.”
▶The government belatedly started revamping the system = The government is belatedly coming up with countermeasures to prevent damage from charter fraud, which is gradually increasing in scale, through law revision.
First, the plan is to promote the revision of the Housing Lease Protection Act so that the lessee can check the landlord’s priority rights and tax payment certificate.
Even now, a prospective lessee can request rental information such as ‘senior deposit’ from an institution that grants a fixed date with the consent of the landlord, but the relevant regulations are ambiguous, and confirmation is impossible if the landlord refuses. In other words, when the building was sold for auction, it was not possible to know exactly the amount of the remaining deposit that he could receive after subtracting the deposit from the tenant who had moved in first. If the law is amended, the lessee may request consent from the landlord to provide information such as seniority deposit, and the landlord is obliged to consent.
In addition, the government plans to start a pilot project to grant commercial banks the authority to confirm the fixed date from this month to prevent landlords from receiving senior mortgage loans without the knowledge of tenants.
Son Jae-young, a professor at the Graduate School of Real Estate at Konkuk University, said, “Because there are blind spots in the law everywhere, the government needs to adjust the law in consideration of the current situation.”