Misrepresenting property use and concealing illegal extensions... 10,412 real estate advertisements suspected of violating the law

[Financial News] The government identified 10,412 online real estate advertisements suspected of violating the law through inspections conducted over the past year. Many of the cases involved misrepresenting the use of a building or its financing, or omitting information such as the property's location and whether it violated building regulations.
According to the Ministry of Land, Infrastructure and Transport (MOLIT) on the 18th, 9,383 cases were identified through routine monitoring of online real estate listings conducted from July last year through June this year. Another 1,029 cases were uncovered in targeted inspections of repeat violators and others.
Among the cases identified through routine inspections, 5,201, or 55.4%, involved "improper labeling and advertising," including false information about a building's use, floor area or options. A total of 3,753 cases, or 40%, involved violations of disclosure requirements, such as omitting the property's location and other mandatory information. The remaining 429 cases, or 4.6%, involved advertisements posted by people who were not registered real estate brokers.
In one case, a property listed in the building register as an accommodation facility was advertised as a detached house. In another, a property with a mortgage lien worth about 1.2 billion won was advertised as having "no financing." Other cases involved omitting the location and building-violation status of a studio apartment with an illegal extension, or having brokerage assistants and employees of property sales companies advertise listings using their own contact information.
MOLIT notified the relevant local governments of the violations and requested follow-up measures, including administrative fines and referrals for investigation. Improper labeling and advertising can result in an administrative fine of up to 5 million won, while violations of disclosure requirements can incur a fine of up to 500,000 won.
Before signing a contract, consumers should check the building register and a certified copy of the real estate register to verify the property's use, floor area, financing and whether it violates building regulations. They can determine whether the person who posted the advertisement is a registered real estate broker through the relevant local government or V-World's real estate brokerage business lookup service.
Consumers should also be cautious of listings priced far above or below the market rate. Suspected illegal labeling or advertising can be reported through the website or call center of the Integrated Reporting Center for Illegal Real Estate Activities.
[email protected] Choi Ga-young Reporter