[Taemin Ryu's Real Estate A to Z] How to Avoid Scams by 'Broker Assistants' Pretending to Be Licensed Realtors?

Cases of Certified Real Estate Agent Impersonation Surge... Must Verify Identity
Multiple Employees Can Be Hired at One Brokerage Office

[Asia Economy Reporter Tae-min Ryu] Office worker A recently signed a lease contract for a villa through a brokerage agency. A found the property online, and when someone from the agency introduced themselves as the ‘siljang’ (head manager) and handed over a business card, A accepted the introduction without suspicion. However, it was later revealed that the leased property was a ‘kkangtong jeonse’ (empty deposit lease) and that the building was an illegal construction, putting A at risk of not getting the deposit back. It turned out that the person who brokered the lease contract for A was not a licensed real estate agent but a ‘junggae bojo-won’ (broker assistant) without brokerage authority.

Recently, scams involving unqualified brokerage posing as licensed real estate agents have been rampant. A junggae bojo-won assists licensed real estate agents, typically by guiding clients to property sites and supporting the agents’ work. Since they do not require any special certification and only need to complete a 4-hour job training, they are legally prohibited from directly drafting contracts or explaining contract details.

However, some of them print titles such as ‘siljang’ (head manager) or ‘isa’ (director) on their business cards, which can mislead clients. The concept of junggae bojo-won is not well known to the general public, and there is no obligation to inform clients that they are broker assistants, making it easy to mistake them for licensed real estate agents. Recently, a person who gained fame as a celebrity investment mentor on a TV entertainment program was found to be a junggae bojo-won without ever having obtained a licensed real estate agent certificate and was sent to the prosecution.

It is especially easy to confuse broker assistants with licensed agents when consultations are done over the phone before an in-person meeting, as in A’s case. Moreover, there is no limit on the number of junggae bojo-won, leading some licensed agents to hire dozens at once, raising concerns about management difficulties. According to data from the Korea Association of Licensed Real Estate Agents, the rate of accidents caused by broker assistants among real estate brokerage accidents increased from 57.6% in 2016 to 67.4% in 2020. Last year, it remained high at 59.3%, still accounting for more than half.

From the consumer’s perspective, to avoid such incidents, it is essential to verify whether the person is a licensed real estate agent before signing a contract. According to the Licensed Real Estate Agent Act, all licensed real estate offices must display the agent’s certificate. Additionally, it is easy to check the status of a licensed real estate agent through the National Spatial Information Portal or the Korea Association of Licensed Real Estate Agents website. Lawyer Jo Sae-young of Law Firm Rowin advised, “Only licensed real estate agents are allowed to discuss or conclude contract matters. When actually signing contracts or handling money, it is necessary to verify the other party’s status as a licensed real estate agent through these methods.”

Meanwhile, to prevent such problems in advance, local governments have launched campaigns to require licensed real estate agents to wear identification badges. Districts such as Gangnam-gu, Geumcheon-gu, Yeongdeungpo-gu, and Yongsan-gu are considering requiring all licensed real estate agents operating in their areas to wear ID badges. Jungnang-gu has also been discussing budget allocation for this since last year. Following Gangseo-gu and Seocho-gu, which institutionalized ID badge wearing earlier, there is a growing trend toward protecting consumers.