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Re:Death of Korea's 'apartment king' leaves 100s in property... by zdragnar on Sunday January 15, 2023 @01:00AM (#34387109)
> Why transfer a principal part as a loan?

I suppose it doubles as a security deposit in case the tenant mistreats the property. I've known several people who acted as landlords- one rented out an apartment above their storefront, two others rented out their homes when they had to move for work but couldn't find a buyer (this was around the 2008 crash).

All three cases ended with the tenants doing significant damage to the property that wasn't covered by the standard security deposit. I think one case was a secret junkie who went off the deep end, the others were college kids iirc.

I don't think I'd want to be a renter without my key money held in escrow or at the very least a lean held against the property, but that does break the system a bit.

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