Paju-si Investigates Suspected False Real Estate Transaction Reports... 94 Cases Detected

3.3 Billion KRW Fine Imposed on 100 Subjects Following 784 Investigations
Establishing Sound and Transparent Real Estate Transaction Order Through Thorough Investigation

Paju City, Gyeonggi Province (Mayor Kim Kyung-il) announced on the 24th that it investigated 784 cases suspected of false reporting due to discrepancies with surrounding market prices among real estate transaction reports filed this year to establish a sound and transparent real estate transaction order, and detected 94 cases, imposing a total fine of 330 million KRW on 100 individuals.

Paju City Completes Intensive Investigation of Suspected False Real Estate Transaction Reports. Provided by Paju City

The subjects of the fines include cases where the transaction amount was reported higher than the actual price (up contract) or lower than the actual price (down contract) to manipulate market prices, increase housing mortgage loan limits, or reduce capital gains tax, as well as transactions that were not reported within 30 days after contract signing.

During the investigation, many cases of fines imposed due to false reporting of transaction prices were also confirmed. These involved transaction reports based on insufficiently objective documents such as agreements between parties on unpaid transaction amounts or promissory notes where debts were not fulfilled as agreed, which constitute false reporting of transaction prices.

Additionally, for transactions reported at prices lower than the surrounding market prices, it was confirmed that the real estate sellers and buyers were special relations such as family or relatives. Suspecting disguised gifts through transactions reported at lower prices than the market, the tax authorities were requested to conduct an investigation.

The most common violation among the fined cases was delayed reporting of the contract date, mostly where the contract signing date was recorded as the contract document preparation date. City officials emphasized that the contract signing date is not the contract document preparation date, but the date when key parts of the contract, such as payment of the purchase price or balance, are agreed upon (in writing or verbally) and part of the deposit is paid.

A Paju City official stated, “Illegal acts such as market price manipulation and tax evasion during real estate transactions are serious problems that disrupt the order of the real estate market,” and added, “Based on the results of this investigation, we will continue to strictly crack down on activities that disturb the real estate market to establish a sound and transparent real estate transaction order.”

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