Delivery After Signing the Confirmation and Explanation of the Brokerage Object
Additional Notification of Management Fees and Brokerage Assistant Identity
#. Mr. A, who lives in Jinju, Gyeongnam, signed a jeonse contract for a multi-family house in the city with a deposit of 70 million won in 2019 through real estate agent Mr. B. At the time of the contract, Mr. B told Mr. A that the senior lease deposit was 140 million won, which was less than 60% of the house price, making it safe. However, in reality, there was a senior claim of more than 415 million won. Later, the multi-family house went to auction, and as a junior tenant, Mr. A had no right to oppose and could not recover any of the deposit. Mr. A filed a lawsuit against the landlord, the real estate agent, and the Real Estate Agents Association for the return of the deposit. In February, the Jinju Branch of Changwon District Court ruled that the defendants jointly pay Mr. A 70 million won in lease deposit and delayed damages.
To prevent situations like Mr. A's, the government has expanded the mandatory explanations that real estate agents must provide when mediating rental properties such as jeonse and monthly rent, including senior priority rights and tenant protection systems. On the 2nd, the Ministry of Land, Infrastructure and Transport approved a partial amendment to the Enforcement Decree of the Real Estate Agents Act at the Cabinet meeting.
From three months after the promulgation of this amendment, real estate agents must explain senior priority rights (landlord’s unpaid taxes, status of fixed-date registration, registered households), tenant protection systems (priority repayment rights for small tenants, deposit guarantee system for private rental housing), and have the parties sign the 'Confirmation and Explanation of the Object of Brokerage' form, which must be provided to the transaction parties. The Ministry of Land, Infrastructure and Transport allowed a three-month preparation period so that real estate agents and clients can fully understand the amendments.
The form for the 'Confirmation and Explanation of the Object of Brokerage' under the Enforcement Rules of the Real Estate Agents Act will also be changed. The current confirmation and explanation items related to lease contracts by real estate agents will be separately specified in the form, and signatures of the real estate agent, landlord, and tenant will be required. Confirmation and explanation items regarding the total amount of maintenance fees, detailed breakdown, and charging method will also be added to prevent landlords from illegally raising maintenance fees to increase rent. Additionally, a form to verify whether brokerage assistants have fulfilled their obligation to disclose their identity will be included.
Kim Gyu-cheol, Director of the Housing and Land Office at the Ministry of Land, Infrastructure and Transport, said, "The amendment is expected to prevent jeonse fraud in advance by ensuring that real estate agents provide sufficient information when mediating lease contracts." He added, "We plan to improve the compensation system to strengthen real estate agents’ liability for damages and to improve related systems such as the fine imposition system."
Meanwhile, at the same Cabinet meeting, an amendment to the Enforcement Decree of the Road Traffic Act was also approved, requiring large freight vehicles to periodically submit digital driving records. The amendment aims to ensure compliance with rest times, such as a 15-minute break after 2 hours of driving, and to improve driving habits. Currently applied only to route buses, the scope will be expanded to include large freight vehicles with a maximum load of 25 tons and special towing vehicles with a total weight of 10 tons or more.
Park Ji-hong, Director of the Transportation and Logistics Office at the Ministry of Land, Infrastructure and Transport, said, "The amendment will take effect six months after promulgation to allow the freight industry a preparation period," adding, "Continuous monitoring of driving records will help establish traffic safety for freight vehicles."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
