City to attach QR stickers at realty offices through year-end, offering lower loan rates and fraud prevention

Daejeon City Hall.
Daejeon City Hall.

Daejeon said Thursday it will produce and distribute "real estate e-contract stickers" to licensed realty offices citywide. The move aims to help residents sign property contracts more safely and conveniently, from lower loan interest rates to fraud prevention.

The QR code stickers are designed to let visitors to realty offices easily check whether a given office offers electronic contract services. Scanning the QR code on the sticker with a smartphone connects users to the Ministry of Land, Infrastructure and Transport's real estate e-contract system website, where they can find related information.

A real estate e-contract is signed online with an electronic signature instead of on paper. Because the process requires identity verification and electronic signatures from both parties, it reduces the hassle of drafting and storing paper contracts. It also lowers the risk of lost, forged or altered documents.

First, using an e-contract helps prevent real estate fraud. Only currently operating, licensed real estate agents can use the e-contract system after passing identity verification, which helps block unlicensed brokers from illegally arranging deals.

The system also simplifies administrative procedures related to property transactions. Once an e-contract is completed, the report of the actual transaction and the assignment of a fixed date for lease agreements are processed automatically. There is no need to visit a community service center or other government office. Electronic contracts are stored at a certified electronic document center, which also exempts real estate agents from the five-year obligation to keep paper contracts on file, further easing administrative burdens.

Financial benefits and cost savings are another advantage. Buyers and tenants who take out loans from commercial banks can receive an interest rate cut of 0.1 to 0.2 percentage points. Alongside this, users can also receive a 30 percent discount on registration agency fees and a 10 percent discount on lease guarantee fees from the Korea Housing and Urban Guarantee Corporation.

Working with the Daejeon chapter of the Korea Association of Realtors, the city will distribute the e-contract stickers to local realty offices in stages through the end of the year. Offices will be advised to attach the stickers in visible spots, such as on entrance doors, so residents can spot them easily.

When visiting a realty office for a property contract, residents can check whether the office offers e-contract services by looking for the sticker on the entrance door or elsewhere. If they want to use an e-contract, they can ask the agent, and once both parties agree, the contract will be drafted and signed electronically online.

"Since real estate contracts are directly tied to residents' valuable assets, it is important to create a safe and convenient contracting environment," said Choi Jong-su, director general of Daejeon's urban affairs bureau. "We will actively promote the e-contract stickers so that residents can easily identify realty offices offering e-contract services, helping spread a safer culture of real estate transactions."


kwonhl@heraldcorp.com