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A large-scale public auction occurred in an apartment complex in Yongin City due to trust lease (jeonse) / pre-sale frauds involving 159 households. The apartment had a secured trust contract with the Korea Land Trust in 2011, and the lease (jeonse) / pre-sale contracts were executed without the consent of the trustee, resulting in tens of billions of Korean Won in damages, with an estimated 400 or more victims.
This case was caused by a breach of contract between the developer of the complex and the Daehan Land Trust, and since the victims did not receive the consent of the trust, it is difficult to conclude that they signed an enforceable lease. Unlike other lease fraud cases, this case does not have a right of first refusal under the House Lease Protection Act, making it more difficult to recover damages, so it is recommended to be cautious when contracting for properties registered in trust, and to seek qualified expert advice to prevent such damages.
Ji Su Choi, an attorney at Lin's Construction & Real Estate Team, said, "When contracting for real estate with a trust contract, it is essential to check the original trust deed and have it verified by an expert." She added, "As there have been recent cases of trust fraud, it is also necessary to establish a safety measure to easily check the original trust deed issued by the registry office."
The original article can be found below.
Suyeon Byun·Donghoon Han, The Seoul Economic Times
View original article▼
https://www.sedaily.com/NewsView/29X7HORNV3
This case was caused by a breach of contract between the developer of the complex and the Daehan Land Trust, and since the victims did not receive the consent of the trust, it is difficult to conclude that they signed an enforceable lease. Unlike other lease fraud cases, this case does not have a right of first refusal under the House Lease Protection Act, making it more difficult to recover damages, so it is recommended to be cautious when contracting for properties registered in trust, and to seek qualified expert advice to prevent such damages.
Ji Su Choi, an attorney at Lin's Construction & Real Estate Team, said, "When contracting for real estate with a trust contract, it is essential to check the original trust deed and have it verified by an expert." She added, "As there have been recent cases of trust fraud, it is also necessary to establish a safety measure to easily check the original trust deed issued by the registry office."
The original article can be found below.
Suyeon Byun·Donghoon Han, The Seoul Economic Times
View original article▼
https://www.sedaily.com/NewsView/29X7HORNV3