Checking brokerage fee
Calculating brokerage fee
- Brokerage fee shall be received from both of the brokerage clients, and the limit for the brokerage fee to be received from each party is indicated in the table below. The brokerage fee shall be mutually consulted and determined between the brokerage client and the licensed real estate agent within the range prescribed by the ordinance of each Si (city) / Do(province) (Article 32(4) of the Licensed Real Estate Agents Act and Article 20(1) and Attached Table 1 of the Enforcement Rules of the Licensed Real Estate Agents Act).
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Contents
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Amount
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Maximum rate
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Limit
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Sales/Exchange
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Below 50 million won
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0.6%
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250,000 won
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50 million won to 200 million won
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0.5%
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800,000 won
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200 million won to 900 million won
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0.4%
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900 million won to 1.2 billion won
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0.5%
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1.2 billion won to 1.5 billion won
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0.6%
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1.5 billion won or above
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0.7%
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Lease, etc.
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Below 50 million won
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0.5%
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200,000 won
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50 million won to 100 million won
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0.4%
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300,000 won
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100 million won to 600 million won
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0.3%
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600 million won to 1.2 billion won
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0.4%
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1.2 billion won to 1.5 billion won
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0.5%
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1.5 billion won or above
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0.6%
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- Commission of brokerage of anobject other than a house shall be as follows (Article 32(4) of the LicensedReal Estate Agents Act and Article 40(4) and Attached Table 2 of theEnforcement Rules of the Licensed Real Estate Agents Act).
1. Officetelsunder subparagraph 2(b) of Attached Table 1 of the Enforcement Decree of theBuilding Act [① with an areaof 85 m² or below for exclusive area, and ②furnished with a stand-up kitchen with water and wastewater facilities, abathroom with a flush toilet, and bathing facilities (including cases wherebathrooms are furnished with both a flush toilet and bathing facilities)]:Brokerage fee to be determined within 0.5% of the transaction amount in thecase of a sale or exchange and within 0.4% of the transaction amount in thecase of a lease.
2. Casesother than 1. above: To be determined upon mutual consultation between thebrokerage client and licensed real estate agent within 0.9% of the transaction amount.
- When using the brokerage service of a practicing licensed real estate agent for the purpose of a housing sale or lease, the client(s) shall pay a fixed fee concerning the brokerage business and the actual expenses incurred by the confirmation of rights, etc. regarding the object of brokerage (See Article 32 (2) of the Licensed Real Estate Agents Act and Article 20 (2) of the Enforcement Rules of the Licensed Real Estate Agents Act).
· Calculation method of brokerage fee
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Division
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Calculation of transaction amount (Article 20 (5) of the Enforcement Rules of the Licensed Real Estate Agents Act)
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Housing or real estate sales other than a house
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In cases where more than one transaction, including sales, is made between the same parties for the same object of brokerage at the same opportunity, only the amount of sale shall be applied.
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Housing or real estate exchanges other than a house
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Of the objects of exchange and brokerage, the value of the object which entails the larger transaction amount shall be adopted.
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Housing lease
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Lease: deposit Monthly rent ① In cases where there is rent other than the deposit: (monthly rent × 100) + deposit ② In cases where the amount of ① is less than KRW 50 million: (monthly rent × 70) + deposit
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Checking the duty of a practicing licensed real estate agent
Duty of confirmation, explanation, and preservation of the object of brokerage
- After requesting brokerage to a licensed real estate agent, check if the licensed real estate agent explains the following matters about housing by providing evidence, such as a land cadastre, a comprehensive certificate of real estate, or a certificate of registered matters (Article 25 (1) of the Licensed Real Estate Agents Act and Article 21 (1) of the Enforcement Decree of the Licensed Real Estate Agents Act).
· Basic matters concerning the object of brokerage, such as the type, location, lot number, land category, area, purpose of use, structure, construction year, etc.
· Matters pertaining to rights, such as ownership, right to lease on a deposit basis, mortgage, superficies, and right to lease.
· Expected amount of transaction, remunerations for brokerage, actual expenses, and the details of the calculation thereof.
· Land use plan, transaction regulations and restrictions under public law
· Conditions of facilities, such as water, electricity, gas, fire protection, heating, elevator, and drainage
· Condition of walls, floors, and wallpapers
· Environmental conditions, such as sunlight, noise, and vibration
· Locational conditions, such as connectivity to roads and public transportation and proximity to markets and schools
· Types of taxes and tax rates to be paid when acquiring the rights to the object of brokerage
- Any agent who fails to ascertain and explain the object of brokerage conscientiously and correctly or to present the evidential materials pertaining to the explanation thereof shall be subject to an administrative fine not exceeding KRW 5 million (Article 51 (2) 1-5 of the Licensed Real Estate Agents Act).
Duty to draw up and keep a contract
- If brokerage concerning the object thereof is completed, the practicing licensed real estate agent shall prepare a contract, deliver it to both parties to the transaction, and keep one copy thereof for five years (Article 26 (1) of the Licensed Real Estate Agents Act, Article 22 (2) of the Enforcement Decree of the Licensed Real Estate Agents Act).
Duty to maintain confidentiality
- A practicing licensed real estate agent, a licensed real estate agent affiliated with the practicing licensed real estate agent, a brokerage assistant, or a licensed real estate agent acting as a staff member of a corporate body shall not disclose private information acquired through the performance of his/her duties even after leaving the brokerage profession (Article 29 (2) of the Licensed Real Estate Agents Act).
Licensed real estate agent’s liability for damages
Checking the subscription to a guarantee insurance
- When a practicing licensed real estate agent who has subscribed to a guarantee insurance inflicts property damages upon a party to transaction either intentionally or by wilful negligence during brokerage, he/she shall be liable for the damages (Article 30 (1) of the Licensed Real Estate Agents Act).
Criteria for the settlement of consumer disputes concerning real estate agents
- If a dispute arises with a licensed real estate agent, the following criteria for the settlement of consumer disputes shall apply (Article 16 (3) of the Framework Act on Consumers and Attached table 2, No. 19, the Real estate brokerage of the Criteria for the Settlement of Consumer Disputes).
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Type of dispute
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Criteria for settlement
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Demand for excessive brokerage compensation
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Return of difference
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Property damages caused by failure to confirm and explain the object of brokerage
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Compensation for damages
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