Buying an Apartment from Parents at a 30% Discount
On-site Inspections Across Seoul... Detailed Investigation into Suspicious Transactions
Stern Response to Illegal Activities
#Buyer A reported a real estate transaction in which he purchased an apartment in Seoul from his parents for approximately 1.7 billion won. However, this transaction is suspected to be a case of disguised gifting, as the sale price was 30% lower than the market value for similar-sized apartments, and unnecessary brokerage services were used, resulting in the payment of brokerage fees.
#Unlicensed broker B, who does not have formal qualifications, provided unverified price information on major apartment complexes through an online community. There is also evidence that B engaged in illegal brokerage activities by inducing clients to sign contracts through a specific licensed real estate agent. The Seoul Metropolitan Government is conducting further investigations and inspections, and plans to request a formal investigation by law enforcement authorities.
On May 1, the city announced that, after conducting on-site inspections of a total of 225 real estate offices in cooperation with the Ministry of Land, Infrastructure and Transport and local districts, it had discovered 70 suspicious transactions.
Of the 70 suspicious transactions, 11 were cases of disguised gifting, 28 involved excessive borrowing, 1 was a false report, and 30 fell into other categories. For these suspicious transactions, the authorities plan to obtain written explanations and financial transaction records from the parties involved and the real estate agents, and to verify whether the reported transaction details match the actual records.
Since March, following the re-designation of land transaction permit zones, the city has been conducting intensive inspections of licensed real estate offices throughout Seoul, including in Mapo-gu, Seongdong-gu, Gwangjin-gu, and Gangdong-gu. The inspections target market-disrupting activities such as price collusion, false contract reporting, and false property listings. As soon as any facts are confirmed, the city will immediately notify relevant agencies such as the Financial Services Commission, the National Tax Service, and the National Police Agency, and will take strong measures.
In addition, the city plans to monitor transaction trends in areas where speculative demand is a concern, and to promptly review additional response measures if any abnormal trends are detected.
Cho Namjun, head of the Urban Space Headquarters of the Seoul Metropolitan Government, stated, "We are making every effort to block speculative demand from entering the real estate market by mobilizing a variety of measures," and added, "We will continue to implement effective actions without any gaps to establish a transparent market order."
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