"To Prevent Losing House Deposits" Strengthening Real Estate Agents' Duty to Explain

Enforcement Decree and Enforcement Rules of the "Gongin Junggaesa Act" to Take Effect from the 10th

Licensed real estate agents must explain the rights relationships, such as the landlord's overdue taxes and the priority tenant's deposit, to the tenant.

On the 5th, the Ministry of Land, Infrastructure and Transport announced that the revised Enforcement Decree and Enforcement Rules of the "Licensed Real Estate Agents Act" will take effect from the 10th. The revision strengthens the obligation of licensed real estate agents to verify and explain the brokerage objects. The purpose is to prevent jeonse fraud and to make management fees more transparent.

Before signing the lease contract, tenants will receive confirmation and explanation from the licensed real estate agent regarding the landlord's overdue taxes, priority tenant deposits, and other priority rights related to the brokerage object. This is based on information from the certificate of registered matters, land register, building register, as well as confirmed date assignment status information submitted or consented to be viewed by the landlord, and tax delinquency information.

The contents confirmed and explained by the licensed real estate agent must be written in the "Brokerage Object Confirmation and Explanation Document." The licensed real estate agent, landlord, and tenant must check and sign this document. Through this process, tenants can anticipate in advance whether it will be difficult to recover their deposit after the lease contract ends.

Licensed real estate agents must also inform tenants about tenant protection systems such as the priority repayment amount and the rental deposit guarantee system. This is to strengthen the stability of lease contracts by protecting tenants' deposits.

Specifically, licensed real estate agents must inform tenants about the scope of small-amount tenants who can be protected regardless of the order of mortgage registration under the Housing Lease Protection Act and the priority repayment amount. If the contracted house is a private rental housing under Article 49 of the "Special Act on Private Rental Housing," they must also inform tenants of the obligation to subscribe to a rental deposit guarantee.

Tenants can also verify whether the person guiding them at the brokerage office is a licensed real estate agent or a brokerage assistant. If a brokerage assistant guides the brokerage site, they must inform the client that they are a brokerage assistant. Licensed real estate agents must indicate whether the brokerage assistant’s identity notification has been made in the Brokerage Object Confirmation and Explanation Document.

Additionally, to prevent disputes related to management fees, tenants can hear from the licensed real estate agent about the amount, itemization, and charging method of the management fees for the leased house. Licensed real estate agents must explain the total management fee and the details included in the management to the tenant and record them in the contract and the Brokerage Object Confirmation and Explanation Document.

Nam Young-woo, Director of Land Policy at the Ministry of Land, Infrastructure and Transport, said, "Through this revision, we expect an environment to be created where licensed real estate agents provide tenants with sufficient key information related to leases, enabling safer lease contract conclusions."