Checklist before signing a lease in Korea

Most deposit problems can be prevented before you sign. Do these checks in order, and don’t pay any money until the documents look right. Ask the broker to explain anything you don’t understand. You can also bring a friend who speaks Korean well.

Eight checks before you sign

1. 1

   Check that the broker is registered

   A broker’s office must display its registration certificate, the broker’s license and a liability guarantee certificate (공제증서 or similar). Check that the office name and the agent’s name match the contract. Ask the name of the person helping you. The explanation and the contract should be handled by a licensed broker.

2. 2

   Check the building register (건축물대장)

   Look at the main use of the building. It should be a type of housing. An officetel is usually listed as a business facility (업무시설), which is normal. A room in a neighborhood facility (근린생활시설) that is used as a home may be an illegal conversion. Also check whether the register marks it as a violating building (위반건축물). These problems can make a deposit guarantee or a loan difficult.

3. 3

   Check the property registry (등기부등본)

   Check the owner’s name in the ownership section (갑구) and mortgages (근저당) in the other-rights section (을구). Also look for seizures (압류, 가압류) or a trust (신탁). Add the loans and other tenants’ deposits, and compare the total with the property’s value.

4. 4

   Meet the owner or check the power of attorney

   Check that the owner’s ID matches the registry. If someone else signs for the owner, ask for a power of attorney stamped with the owner’s registered seal and the owner’s certificate of seal impression (인감증명서). If you can, call the owner yourself to confirm.

5. 5

   Get the broker’s confirmation and explanation document

   The broker must explain the property before the contract and give you a signed confirmation and explanation document (중개대상물 확인·설명서). It covers rights, the building’s condition and costs. Read it before you sign and keep a copy.

6. 6

   Write special terms (특약)

   Write important promises into the contract. Examples: “The deposit is returned on the move-out day.” “The owner repairs the boiler and other main facilities.” “The owner will not take a new loan or sell the house until the day after move-in. If this is broken, the tenant can cancel the contract and get the full deposit back.”

7. 7

   Pay a small contract deposit only after the checks

   Do not send any money, even a “holding deposit” (가계약금), before you have checked the documents. It may be hard to get back. Pay the contract deposit (계약금) only to the owner’s own account, and pay the rest on the balance day.

8. 8

   Visit the room, more than once

   Check the water pressure, mold on walls and window frames, heating and hot water, noise, the door lock and security, and the street at night. If you can, visit at different times of day.

Documents to check

The broker’s fee

The broker’s fee (중개보수) has a legal maximum. The limit depends on the deal amount and the type of property. Ask how much the fee is before you sign, and ask for a receipt when you pay.