Zigbang Launches 'Jikim Junggae' to Prevent Trust Real Estate Jeonse Fraud

Comprehensive proptech company Zigbang is taking steps to prevent lease fraud related to trust real estate through its Jikim Brokerage service. On the 25th, Zigbang announced that it will require mandatory verification of the trust register and trustee consent form when signing lease contracts for trust-listed properties.

According to the Ministry of Land, Infrastructure and Transport, as of September 20 last year, trust fraud accounted for 7.3% (443 cases) of the total recognized lease fraud victims (6,063 cases). Trust real estate refers to properties where the actual owner entrusts the management, disposal, and development rights of the property to a real estate trust company for a certain period. If the actual owner leases a house included in the trust assets without the consent of the trustee trust company, the tenant may find it difficult to receive legal protection.

To prevent lease fraud in trust real estate, Zigbang has introduced a mandatory verification process of the trust register and trustee consent form when contracting through the ‘Jikim Brokerage’ service, which is provided jointly by Zigbang’s brokerage corporation ‘Zigbang Real Estate Partners’ and affiliated licensed real estate agents.

If a tenant wishes to transact trust-listed properties through Jikim Brokerage, the affiliated licensed real estate agent obtains the ‘trust register’ and ‘trustee consent form’ from the landlord. Then, the Jikim Brokerage professional contract inspection team, composed of experts, reviews the contents of the trust register and the names of the entrusting and trustee parties, and checks whether the trustee trust company has consented to the lease transaction, thoroughly assessing the risk of lease fraud.

After reviewing the documents, the contract inspection team accurately informs the tenant of the important matters they need to be aware of regarding the trust real estate lease contract to help ensure a safe contract. If the landlord does not submit the relevant documents, the contract itself cannot proceed.

An Seong-woo, CEO of Zigbang, said, “We are focusing on enhancing the Jikim Brokerage contract inspection process to prevent tenants from suffering damages due to insufficient information about the property,” adding, “Through the Jikim Brokerage service, which works with local licensed real estate agents, Zigbang will create a real estate transaction environment where tenants can use the service with peace of mind.”

Meanwhile, Zigbang launched the Jikim Brokerage service last September, initially focusing on villas and multi-family houses in Gangseo-gu, Seoul, providing property verification, detailed diagnosis, and joint stamping to take direct responsibility for brokerage accidents. The service area is currently expanding to 18 autonomous districts in Seoul, including Gangnam, Gangseo, and Gwanak.