Land Trust

What is the sales management trust?

Pursuant to the Act on Realty Sales of Building and Improvements, the contractor of the sales business is required to have the trust company to conserve and manage the real estate title and sales proceeds of the clients and business participants for the advance sales business fails to pay the debts undertaken by the contractor, the trust company may dispose the real estate to settle the matter.

Strengths of sales management trust

  • Effect of minimizing the initial burden of business enterprise by advance sales and securing of client rights
  • Prevention of damage on clients following the failure to secure the business site and no permit for construction, and others
  • Resolution of cost burden for business bodies and undertaking flawless and stable business
  • Securing of transparency of sales process and stability for transaction

Subject of applocation

  • Any building with area of sales is 3,000 square meter or more
  • Office-tel with 20 rooms or more
  • Any building structure built as the same until the facilities other than residential use and residential until that the sum of floor area used for anything other than housing until is 3.000 square meter or more
  • Any building with G.F.A. 3,000 Square meter or more that is leased with condition of sales conversion after leasing것
    *Building and improvement other than the subject of application: Housing and welfare facilities/ apartment-type plant/tourism

Major contents under agreement

Classification Contents
Major terms and Conditions of agreement
  • Matters on title management of land and its improvement up to the previous date of title register of clients
  • Matters on disposition of trusted title
  • Matters to settle in priority over the rights of other credit and beneficiary for the sales proceeds that the client paid whten settling the trust
Agency service Conditions of a9
  • Matters on opening the account for dales income management to protect the client
  • Matters of sales company transfeming the total amount of sales income to the trust company
  • Reception and management of sales proceeds including the contract deposit
  • Matters that the sales proceeds shall not be used for any purpose other than the purpose set forth under the trust contract and agency service contact
  • In the event that the business undertaking is impossible due to default, bankruptcy or others, the remaining amount in the management account for the dales income shall be paid to the clidents width the priority
  • Authority of business supervision on the dales company of the trust company, obligation to submit data on the trust company of the dales company and ohter fund execution sequence, and method and time of the payment for the construction company
  • Management of sales contract
  • matters on process management of the construction works
  • Opening and posting matters of work progress for clients
Payment of sales proceeds The contract deposit that sales company is entitled to receive from the clients may be made widthin the range of 20% of the sales proceeds and 70% or below of the dales p5 for intermediary payment.

Business structure

Work procedure

  • Stigulation and contract
  • Outsourcing service contract
  • Report of realty sales approval and realty
    sales approva
  • Subscription notice
  • 1st > 2nd > 3rd > 4th
  • M/H Opening and
    commencement of
    realty sales
1. Stigulation and contract
  • Realty sales management and trust contract
  • Agency affairs contract
  • Construction contract
  • Loan stipulation
2. Outsourcing service contract
  • Sales agency contract
  • Advertisement agency contract
  • Design contract
  • M/H contract
3. Report of realty sales approval and realty sales approval
Report of realty sales for approval (applicable Gu-office) Approval within 5days
  • Sales management trust contract
  • Agencywork contract
  • Certified registered copy
  • Sales advertisement plan
  • Final sales price Sales contract
4. Subscription notice
Stipulation of contractor Saengbo and construction company
  • Sales report number and day
  • Gross area of land number/construction building of site
  • Sales area (each area, ues or location)
  • Use for each floor of construction building
  • Names of sales company, sales agency and construction company
  • Relationship between the manager of sales proceeds and sales company
  • Name of trust company or guaranty institution of realty sales
  • Scheduled date of completion and tenancy
  • Subscription period of buyers and selection schedule
  • Payment period of proceeds for realty sales (intermediary payment can be made when the processing rate in 30% or more)
5. 1st > 2nd > 3rd > 4th
[Subscription method]
  • Post at least once on daily newspaper for nationwide dispersion or daily newspaper with the main dispersion area where the applicable business area is located
[Private contract]
  • Sold when exceeding 40% of initial sales report area
  • From the sales report area, the area not sold is less than 3,000 square meter
  • Two times or more of open subscription
[Priority open subscription]
  • Classitied title interest with the sum of floor area is 1000 square meter or more
  • Possible for open subscription with priority on the classified title with 1/5 or more of gross area.
6. M/H Opening and commencement of realty sales
[Financial institution]
  • Cinfirmation of contract deposit payment(When depositing at the site : it requires cooperation of financial institution)
  • Information on lending of intermediary loan
[Saengbo Real Estate Trust]
  • Confirm the contract deposit
  • Confirm sales contract document sales contract / affixation and management of sales contract
[Contract company]
  • Affixation of realty sales contract

How does the representation work?

  • Consultation
  • Stipulation
  • Enteringinto the Representation
    Work Contract
  • Undertaking representation
    work
  • Settlement and distribution
    of wage