Real estate local housing association fraud, withdrawal and refund are difficult, so you must join carefully.

A local housing association is a real estate business in which residents in the area form an association and then purchase a house by obtaining business plan approval. The association promotes the project by directly purchasing land and raising construction costs.

Therefore, apartments can be purchased at a lower price than typical apartment construction or sales involving a developer. Another advantage is that you can purchase your own home through simple procedures, including no need for a subscription account.

There are things to be careful about when participating in the local housing association project, which is considered a means of purchasing a home. This is because cases of becoming a member of a local housing association after being deceived by exaggerated advertisements and then becoming victims of fraud occur quite frequently. Not long ago, it was reported that embezzlement and fraud worth 29 billion won related to a local housing association was discovered in Cheongju, and its members suffered enormous financial damage.

In the case of local housing association projects, there are many cases where the business stagnates for several years due to difficulties in purchasing due to landowners' difficulties, and many local housing association fraud cases occur due to the association not handling the work properly or promoting the project from the beginning for the purpose of obtaining financial gain.

If there is a defect in the union membership contract itself, members of a local housing association can claim invalidity or cancellation of the contract, withdraw their membership, and request a return of their payments. Specifically, reasons may include violation of the obligation to specify and explain under the Terms and Conditions Regulation Act, legal acts of anti-social order, unfair legal acts, illegal acts or defaults due to fraud or duress.

Just because a project is delayed does not constitute fraud, but if you recruit union members using obviously false information or exaggerate facts to induce them to pay contributions, you can be legally punished for fraud.

Attorney Kim Yong-tae of Daeryun Law Firm said, “The law has been revised to prevent damage caused by local housing association fraud, but it is basically a system that makes withdrawal and refund difficult, so you must be careful about signing up.” He advised, “If you are a victim of fraud, you should seek legal assistance from a criminal and real estate lawyer, secure relevant evidence according to the case appropriate for the parties, devise a favorable strategy, and proceed with a refund lawsuit.”

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