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Kimchifart
Joined: 15 Sep 2010
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 Posted: Wed Dec 14, 2011 12:23 pm Post subject: Re: If you put key money down on a place and don't like it.. |
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| Ibsen wrote: |
| ontheway wrote: |
Mitt Romney recently made an offhand offer to bet $10,000 indicating that such an amount is insignificant to him - on the order of most of US making a bet of $10 or even $1 dollar.
Your desire to bet $20,000 without taking personal responsibility for the decision indicates that you might have a similar disregard for the value of what most people would consider large sums. However, your desire to have some authority figure guarantee your funds indicates that you not only are unwilling to take personal responsibility for your decisions, but you want your mommy to hold your hand and give you back your candy money if you lose it. |
Are you that much of a miserable person? Is it really necessary to repeatedly kick someone when they are down after then have already admitted defeat? Obviously he is in a bad situation and is probably stressed out because of it. Yes it was his mistake and he will have to suffer the consequences, but there is really no need to rub salt in his wounds especially if you add nothing to the discussion. He asked a simple question looking for a simple answer, not to be insulted by someone who knows nothing about him and has absolutely no business in his affairs...
Either way, I myself know nothing about this situation, good luck to you OP. |
Just to clarify I have not yet rented a place, I am simply inquiring about the legal position if something goes wrong. This is a country where things tend to go wrong. I just want to know A. Is my money going to be secure and B. (nothing to do with the deposit) what is the position if there is a serious problem with an apartment I'm in. The second guy answered it, but the other guy seems to think I'm some sort of maniacal crack head loser who can't keep his life in good order. |
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big_fella1
Joined: 08 Dec 2005
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| Posted: Wed Dec 14, 2011 1:27 pm Post subject: |
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| Kimchifart wrote: |
| big_fella1 wrote: |
If you do end up putting down 20 mil be sure to register it at your local supreme court registry office. It only costs 600won but ensures that you are on the list to be repaid if things do go wrong after the government and any mortgagees.
It is easy to do a credit check on the landlord if you understand Korean, but if you don't you need someone you can trust to do it for you. I'm paranoid but that isn't the agent for me.
If you don't like it as stated you need to find another tenant and pay the agency fees. If it is 20 million getting an English teacher to take it over may be difficult. It's best to make sure you like it and your position is secure for the one or two years of your contract. |
Thank you, this is helpful information and is what I was looking for.
So I take it from this that the deposit is underwritten by government? If the landlord doesn't pay me after fulfilling a contract, they will?
If not, the system seems a lot more insecure than I was expecting; I was thinking that it would be underwritten in case of anything going wrong.
I've not seen that many places on Craigslist in Seoul that don't require a deposit. Its a bit worrying really. |
I am not a lawyer all my information is based on hearsay and conjecture but I strongly suggest you treat it as though there is no government guarantee.
I have heard people say that there is a guarantee for 20million or 60 million but no-one ever backs that up with real references.
My understanding is that by paying "key money" you become a preferred creditor after the government and any mortgagees. If they owe a lot in taxes and have a large mortgage there may be no money left to pay you. This is why I suggested getting a credit check as this will tell you if they owe any taxes and how big the mortgage is.
You can find places with lower deposits but you need to shop around, and be prepared to pay more in monthly rent. Itaewon and Haebonchon have many places with lower deposits but many areas will have places too.
I don't know your situation but I am a permanent resident with a Korean wife and daughter and I am agonising over putting up 20 million. For me working a bit more to pay a higher monthly rent helps me sleep better at night.
If you don't have a family look for one rooms or officetels. |
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cj1976
Joined: 26 Oct 2005
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| Posted: Wed Dec 14, 2011 3:26 pm Post subject: |
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| Once you sign the contract and pay the deposit you are pretty much locked in for 12 months. I paid 30 million deposit, but I see it as a kind of forced savings account because I am otherwise terrible at saving money. |
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Kimchifart
Joined: 15 Sep 2010
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| Posted: Thu Dec 15, 2011 2:01 am Post subject: |
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| cj1976 wrote: |
| Once you sign the contract and pay the deposit you are pretty much locked in for 12 months. I paid 30 million deposit, but I see it as a kind of forced savings account because I am otherwise terrible at saving money. |
Don't you worry about your landlord going bust though?
Really, this seems like an awful rental system. Where I'm from even the one months rent deposit is protected and held by an external independent agency. |
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Kimchifart
Joined: 15 Sep 2010
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| Posted: Thu Dec 15, 2011 2:04 am Post subject: |
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| big_fella1 wrote: |
| Kimchifart wrote: |
| big_fella1 wrote: |
If you do end up putting down 20 mil be sure to register it at your local supreme court registry office. It only costs 600won but ensures that you are on the list to be repaid if things do go wrong after the government and any mortgagees.
It is easy to do a credit check on the landlord if you understand Korean, but if you don't you need someone you can trust to do it for you. I'm paranoid but that isn't the agent for me.
If you don't like it as stated you need to find another tenant and pay the agency fees. If it is 20 million getting an English teacher to take it over may be difficult. It's best to make sure you like it and your position is secure for the one or two years of your contract. |
Thank you, this is helpful information and is what I was looking for.
So I take it from this that the deposit is underwritten by government? If the landlord doesn't pay me after fulfilling a contract, they will?
If not, the system seems a lot more insecure than I was expecting; I was thinking that it would be underwritten in case of anything going wrong.
I've not seen that many places on Craigslist in Seoul that don't require a deposit. Its a bit worrying really. |
I am not a lawyer all my information is based on hearsay and conjecture but I strongly suggest you treat it as though there is no government guarantee.
I have heard people say that there is a guarantee for 20million or 60 million but no-one ever backs that up with real references.
My understanding is that by paying "key money" you become a preferred creditor after the government and any mortgagees. If they owe a lot in taxes and have a large mortgage there may be no money left to pay you. This is why I suggested getting a credit check as this will tell you if they owe any taxes and how big the mortgage is.
You can find places with lower deposits but you need to shop around, and be prepared to pay more in monthly rent. Itaewon and Haebonchon have many places with lower deposits but many areas will have places too.
I don't know your situation but I am a permanent resident with a Korean wife and daughter and I am agonising over putting up 20 million. For me working a bit more to pay a higher monthly rent helps me sleep better at night.
If you don't have a family look for one rooms or officetels. |
Thanks for the info, maybe I'll just pay more rent and live with that. |
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cj1976
Joined: 26 Oct 2005
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| Posted: Thu Dec 15, 2011 3:06 am Post subject: |
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| Kimchifart wrote: |
| cj1976 wrote: |
| Once you sign the contract and pay the deposit you are pretty much locked in for 12 months. I paid 30 million deposit, but I see it as a kind of forced savings account because I am otherwise terrible at saving money. |
Don't you worry about your landlord going bust though?
Really, this seems like an awful rental system. Where I'm from even the one months rent deposit is protected and held by an external independent agency. |
Your deposit is insured by the government, so you will never lose your money. Don't worry about that. |
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schwa
Joined: 18 Jan 2003
Location: Yap
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| Posted: Thu Dec 15, 2011 3:25 am Post subject: |
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Its certainly prudent to register your key money with the govt but dont mistake that for "insurance" or a guarantee. Big fella's advice is right on.
| big_fella1 wrote: |
| My understanding is that by paying "key money" you become a preferred creditor after the government and any mortgagees. If they owe a lot in taxes and have a large mortgage there may be no money left to pay you. This is why I suggested getting a credit check as this will tell you if they owe any taxes and how big the mortgage is. |
I've househunted a number of times & viewed homes I'd have loved but a quick check (realtors can help with this) revealed liens or backtaxes due, so definitely not safe. Dont think you cant lose your money. But if the place checks out clean you shouldnt lose sleep over your deposit. I've gotten mine back no problem each time. |
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Kimchifart
Joined: 15 Sep 2010
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| Posted: Thu Dec 15, 2011 4:03 am Post subject: |
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| schwa wrote: |
Its certainly prudent to register your key money with the govt but dont mistake that for "insurance" or a guarantee. Big fella's advice is right on.
| big_fella1 wrote: |
| My understanding is that by paying "key money" you become a preferred creditor after the government and any mortgagees. If they owe a lot in taxes and have a large mortgage there may be no money left to pay you. This is why I suggested getting a credit check as this will tell you if they owe any taxes and how big the mortgage is. |
I've househunted a number of times & viewed homes I'd have loved but a quick check (realtors can help with this) revealed liens or backtaxes due, so definitely not safe. Dont think you cant lose your money. But if the place checks out clean you shouldnt lose sleep over your deposit. I've gotten mine back no problem each time. |
Yeah, the situation is similar to if a limited company goes bust. You might get your money but you're at the end of a long queue of people, by which time after liquidation of the assets there may not be enough to get to you.
I think I'm going to limit it to 10 mill, but that doesn't seem to cut the mustard for a lot of place in Seoul.
Is it really the case that you can't trust realtors to do a proper credit check, or are they normally good with that? |
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big_fella1
Joined: 08 Dec 2005
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| Posted: Thu Dec 15, 2011 1:39 pm Post subject: |
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| Kimchifart wrote: |
| Is it really the case that you can't trust realtors to do a proper credit check, or are they normally good with that? |
Call it paranoia but the realtor only gets paid if you sign the contract. This is enough of a reason for me not to trust them even if they have the highest ethical standards. |
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