Real estate contracts are not something that people often do, so there are often many confusing and worrying parts even when doing it in one's own country. If you have to do it in a foreign country, the anxiety can increase several times more. If you know everything about real estate contracts, from checking the property to the documents that must be checked when signing the contract and the precautions to take after moving in, you can sign the contract much more safely. Today, we have prepared content for foreign students who have been studying in Korea for more than a semester and want to find a house outside the school dormitory. If you are planning to sign a contract or need to, please be sure to read this!
Korean Homes
The homes introduced here are called 'jachwi' in Korean, a residential style where individuals rent a room and solve their meals, laundry, and other living needs. So what types are there?
- Types of Jachwi
- One-room: The larger the size and the closer it is to the subway station or school, the higher the price. Also, some come fully equipped with furniture such as a desk, wardrobe, and bed, as well as appliances such as a washing machine, refrigerator, and air conditioners.
- Ordinary house: In most cases, renting a floor when it is a single-family house or a multi-story building is common.
- Villa: High-end villas are excluded, and there are usually two rooms, a living room, a veranda, and a bathroom.
- Apartment: It is called an apartment complex or an apartment village with many buildings.
- Payment Method for Rent
- Monthly rent: Rent is paid based on a one-month period. There are two methods of paying monthly rent: paying a certain amount of deposit and monthly rent, or just paying monthly rent without a deposit. The contract period is usually one year.
- Jeonse: Jeonse refers to a situation where a tenant gives money to the landlord for a period of time without paying monthly rent, and receives the Jeonse deposit back at the end of the contract period. The contract period is usually two years.
Let's take a look at the actual real estate contract steps!
Real Estate Contract Procedures
Searching for a House to Contract
Source: Seoul Real Estate Information Plaza
You can search for market prices and house listings on real estate and online brokerage websites. Nowadays, you can get a general idea of market prices through mobile apps, but you can find more information, such as exclusive floor space and transaction amounts, by checking Seoul Real Estate Information Plaza for Seoul or Ministry of Land, Infrastructure and Transport for other regions.
Choosing a Real Estate Property
If you want to ensure a secure guarantee, it is advantageous to trade through a real estate agent. In addition, as they hold many properties, it can save you the effort of searching for good listings, and they can indirectly communicate any difficult negotiations with the landlord. If you want to find a good real estate agent, there are cases where they operate a blog or website directly from a real estate company, so you can check to see if they are trustworthy. Generally, if there are many false listings, they are less likely to recommend good listings. You can also visit the language schools of universities and get recommendations there. If you are not fluent in Korean, we recommend "Ziptoss". They provide services from consultation to contract with real estate agents who are fluent in foreign languages, so even foreign customers who cannot speak Korean can find a house without any problems. (Ziptoss reservation page)
When inspecting facilities such as water, electricity, gas, firefighting, and drainage in a building, the guarantor plays a role in signing a rental agreement for a house. However, when choosing a real estate agent, it is important to check rather than trust them completely, as this reduces the possibility of problems. Also, there may be cases where the person is not a real estate agent, so it is a good idea to check if they have a license and whether the license photo matches the broker.
Check the Property
Even if you see the property you want online, there may be a difference between seeing it with your own eyes. It is recommended to check at least three different properties before making a contract.
Also, if you find a property you like, you need to go to that area in person and carefully check the surrounding facilities. When you make sure, you must check how close the public transportation facilities such as subway or bus stops are, how close the mart is, and how close the police station is if you are in an area with many entertainment facilities, you may be bothered by noise at midnight, so please be careful!
Useful information to check before signing a contract for the desired property:
Depending on the area, in the case of monthly rent, there are cases where the homeowner pays the full commission to the real estate agent instead of the tenant. Therefore, it is also important to know whether the commission is paid or not.
According to the Housing Lease Protection Act, even if a one-year contract is signed, it is possible to renew the lease automatically for one year under the same conditions. If you plan to reside for only one year and move, you must notify at least one month before the end of the lease contract for termination.
Check the Information
There are essential items that must be checked first before proceeding with the contract.
The first is the procedure for confirming the registration certificate of the property, and the second is the procedure for confirming the identity of the homeowner.
First of all, through the registration certificate, you can find out whether the desired property is under a mortgage or a seizure. Especially in cities like Seoul where the value of houses is very high, there are many monthly rent houses that go to auction because the homeowners cannot repay their loans, so if you want to safely sign a monthly rent, it is good to have a clean registration certificate without a loan. Also, when signing a contract, you must confirm whether the person writing the contract is the homeowner or a representative, and if it is a representative, you must request that his or her ID card, seal certificate, and power of attorney be presented. It is best to directly contract with the owner on the registration certificate, if possible.
Writing a Contract
1. Lessor
The lessor prepares documents such as an ID card, stamp (or signature, fingerprint), registration right certificate, registration certificate, and building management ledger. However, when dealing through a real estate agent, many cases are handled by just signing the contract and paying the deposit.
2. Lessee (yourself)
| Length of Stay | Remarks |
| Common items to prepare: ID card, stamp (or signature, fingerprint), and deposit | |
| Stay of 90 days or less | If staying for 90 days or less, identification is confirmed with a passport, and personal information on the passport is used as is. Generally, this applies to short-term leases or sales contracts that are less than three months. |
| Stay of more than 90 days | Identification is confirmed with an alien registration card. Foreigners who have registered their residence, such as Korean citizens, have the same rights as locals in financial transactions, real estate transactions, etc. |
| No domestic residency permit | The contract is written based on the passport, and the tenant's personal information is changed to the standard of the residency permit when the residency permit is issued later. |
If international students have signed a lease agreement legally, they are subject to the Housing Lease Protection Act just like Korean nationals.
- Be sure to obtain an alien registration card (residency permit) and create a lease agreement based on it.
- If there is a change of residence to the address where the lease was signed, a residence change report must be submitted within 14 days of the change.
- Obtain the date of finalization of the lease agreement from the local government office.
If you have completed all of the above, you can guarantee the tenant's rights and deposit.
3. Writing a lease agreement
When creating a lease agreement, it is important to clearly state the personal information of the parties involved, the purpose of the lease, the date of the contract, the rent amount, the date of rent payment, the rental period, and any other conditions. When signing a lease agreement, it is customary to pay a contract deposit of 10% of the rental security deposit. This deposit serves as a basis for calculating damages in case the lease agreement is terminated before the performance of the contract, so please keep this in mind.
4. Moving in after payment of the balance
The balance is usually paid on the day of move-in. When paying the balance, it is recommended to check the real estate registration again to see if there have been any changes in the property rights after the lease agreement. Also, it is safer to pay the balance through a bank transfer, which leaves a record, rather than cash. We recommend that you always receive a receipt after paying the balance.
Things to Keep in Mind after moving in:
The 'change of residence report' is a notification of a change of residence. When you move in, you must receive a confirmation date and a change of residence report within 14 days. The confirmation date is the date on which a stamp is affixed to the empty space on the lease agreement to verify the date of the lease agreement, such as in a court or local office. Once again, under the Rental Protection Act, if the house is auctioned off, having a confirmation date will ensure that you receive your security deposit first.
Therefore, these procedures are important for protecting your security deposit, just like a real estate registration certificate. Don't forget to check them!
Today, we looked at the A to Z of real estate contracts, from before signing the contract, to during the contract, and after the contract. Please read it carefully and we hope you have a safe and convenient study abroad experience in the future!
Reference and Source
Legal Information for Daily Life https://easylaw.go.kr/CSP/CnpClsMain.laf?popMenu=ov&csmSeq=508&ccfNo=3&cciNo=2&cnpClsNo=2&search_put=
Korea Study Abroad Comprehensive System https://www.studyinkorea.go.kr/ko/main
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