Ulsan City Launches 2nd Special Inspection for Preemptive Prevention of 'Jeonse Fraud'

Following February, Encouraging Real Estate Agencies to Use the

‘Lease Safety Contract Consultation Center’

Ulsan City will conduct a second special inspection of real estate brokerage offices around suspected scam areas from the 25th of this month to June 23rd to prevent 'jeonse fraud' damage.

The inspection targets include certified real estate agents who brokered transactions for houses owned by malicious landlords involved in Housing and Urban Guarantee Corporation (HUG) guarantee accidents, as well as agents in areas densely populated with one-room, multi-family, and officetel units.

As jeonse fraud cases have been increasing recently in the Ulsan area, especially involving trust company-owned building scams and double contracts, there is a growing need to prevent jeonse fraud damage.

The trust company-owned building scam is a typical fraud type where the building owner (trustor) independently contracts with tenants without prior consent from the trust company, and if unauthorized occupancy is later confirmed, eviction orders or public auctions by the trust company prevent the return of the jeonse deposit.

Related jeonse deposit guarantee accidents in Ulsan have increased significantly to 17 cases by March this year, compared to 10 cases in the second half of last year.

To prevent jeonse fraud and ensure safe contracts, it is essential to actively use the 'Jeonse Fraud Prevention Method,' which allows checking priority rights relationships, surrounding market prices, and other verification items before, on the day of, and after the contract, as well as during the balance payment and move-in.

Additionally, even after the contract, subscribing to the 'Jeonse Deposit Return Guarantee Insurance' should be done to protect the jeonse deposit.

An official from Ulsan City stated, "The best way to safely protect the jeonse deposit is through prior prevention. We urge people to reduce risks and safely enter lease contracts by consulting the 'Housing Lease Safe Contract Counseling Center.'"

As a measure to prevent jeonse fraud, Ulsan City has been operating the 'Housing Lease Safe Contract Counseling Center' since February this year, and considering citizen accessibility, district offices and the Ulsan branch of the Korea Association of Realtors also provide in-person and telephone consultations.

Furthermore, in February, a proactive first special inspection was conducted on 101 real estate brokerage offices in one-room and multi-family dense areas with a high risk of jeonse fraud.

This content was produced with the assistance of AI translation services.