Hello. Reporter Jinhee Kim |
As early as October, the upper limit of the real estate brokerage commission rate will be lowered from 600 million won for sales and 300 million won for rentals.
As a result, the highest brokerage fee for the sale of a house worth 900 million won will be reduced by 44.5% from 8.1 million won to 4.5 million won, and the highest commission for a 600 million won jeonse transaction will be reduced from 4.8 million won to 2.4 million won, about half.
In addition, a plan to change the current absolute evaluation method of selection to a relative evaluation is being considered in order to adjust the number of qualified real estate agents.
On the 20th, the Ministry of Land, Infrastructure and Transport confirmed and announced the ‘real estate brokerage fee and brokerage service improvement plan’.
Brokerage fees are linked to real estate transaction prices, and as transaction prices have risen overall, the burden of brokerage fees has also increased.
As a result, demands from the public, the National Assembly, and the media for ‘reorganization of brokerage fees’ increased. In fact, as a result of a survey by the Anti-Corruption and Civil Rights Commission, 53% of the public opinion that the brokerage fees were excessive.
The Ministry of Land, Infrastructure and Transport, referring to the ACRC recommendations, prepares a plan to reorganize the brokerage fee and prepares a plan to reorganize the fee system by lowering the rate as a whole based on the service of establishing a development plan to identify improvement tasks and a survey on the status of the brokerage industry did.
Over 600 million sales and 300 million rentals, lower brokerage fees
It was decided to reduce the remuneration burden by lowering the upper limit rate for sales of 600 million won or more and rentals of 300 million won or more, where the number and proportion of transactions increased.
In the current remuneration system, the rate was lowered as the transaction amount increased, but the rate increased based on 600 million won for sale and 300 million won for lease, increasing the burden.
In the case of trading, the current upper limit rate (hereinafter referred to as the rate) is maintained for transactions of less than 600 million won.
A fee limit of 250,000 won is set at 0.6% for less than 50 million won. The fee limit is 800,000 won and 0.5% for 50 million to 200 million won. The current rate of 0.4% is applied to the range of 200 million to 600 million won.
However, the rate system changes from the 600 million won or more section. The rate between 600 million won and 900 million won will be lowered by 0.1 percentage point from 0.5% to 0.4%.
In addition, the 900 million to 1.5 billion section is subdivided from one to three. Under the current system, 0.9% was applied to all payments over 900 million won, but in the future, it will be lowered to 0.5% for 900 million won to 1.2 billion won and 0.6% for 1.2 billion won to 1.5 billion won.
In addition, it was decided to ease the sharp increase in the remuneration burden caused by the increase in transaction amount by establishing a new maximum section of 1.5 billion won or more. A 0.7% rate is set for sales of 1.5 billion won or more.
So far, when buying and selling a house worth 890 million won, a 0.5% rate is applied, resulting in a brokerage fee of 4.45 million won.
According to the reorganization plan, a 0.4% rate for trading 890 million won, a brokerage fee of 3.56 million won, and a 0.5% rate for 900 million won will increase by only 940,000 won to 4.5 million.
In the case of rental brokerage fees, the rate will be lower than the current rate for transactions of 300 million won or more.
The existing rate system is applied, such as 0.5% for less than 50 million won and 200,000 won for 0.5%, 300,000 won for 0.4% for 50 million won to 100 million won, and 0.3% for 100 million to 300 million won.
However, for 300-600 million won transactions, the commission rate is reduced from 0.4% to 0.3%. Under the current system, the rate is 0.8% for all leases of KRW 600 million or more, but in the future, rates of 0.4% for KRW 600 million to 1.2 billion, 0.5% for KRW 1.2 billion to 1.5 billion, and 0.6% for more than KRW 1.5 billion will be set differentially.
At the same time, in order to solve the reverse phenomenon in which the burden of brokerage fees for rentals is higher than for sales, the rental rates are set to be lower or equal to the sales rates in all sections.
The Ministry of Land, Infrastructure and Transport is planning to revise the Enforcement Rules of the Certified Real Estate Brokers Act to stipulate the upper limit of the rate to reorganize the brokerage remuneration system. If this happens, it is expected that the reduced fee rates will be applied at the same time across the country from October as early as October.
If the local government reflects it in the ordinance first, a new fee rate may be implemented even before the enforcement rules are amended. The Ministry of Land, Infrastructure and Transport plans to request revisions to the ordinances after each city and province are challenged with recommendations to revise the ordinances of cities and provinces for brokerage fees.
Increase the limit of liability guarantee to improve the quality of brokerage services
In order to strengthen consumer protection against brokerage accidents, the liability guarantee limit of certified real estate agents (broker association deductible) will be raised from 100 million won to 200 million won per year for individuals and from 200 million won to 400 million won for corporations.
The extinctive prescription of the right to claim payment for the deductible from the Association of Realtors is extended in the same way as the extinctive prescription of the right to claim compensation under the Civil Act (3 years). We plan to diversify the members of the Compensation Deliberation Committee and clarify the selection criteria so that various opinions can be reviewed when reviewing the deduction payment.
In addition, a ‘consumer complaint counseling window’ will be established in the Association of Certified Real Estate Brokers, and complaint counseling services will be provided through collaboration with consumer groups. In order to resolve conflicts that may arise during brokerage transactions, the introduction of a ‘(tentative name) Dispute Mediation Committee’ in which local governments, brokerage associations, and consumer groups participate is actively promoted.
In order to improve the confirmation and explanation, strengthen the confirmation of the performance of the brokerage object, such as the establishment of new items for facilities in the confirmation and manual and the confirmation of the period of use, and make the contents of the lease, such as the contract period and the amount of the guarantee, be specified in the right-related items in the confirmation and manual. We plan to minimize the risk. In particular, in the case of multi-family housing transactions where accidents are frequent, the right relationship should be included in the confirmation and explanation.
We plan to provide information on the location requirements of intermediaries by specifying examples of facilities that are not preferred by society, such as crematoriums, ossuaries, cemeteries, and garbage disposal facilities, which are avoidable facilities according to social norms.
In addition, to prevent damage to consumers due to false or false advertisements of online intermediaries, display and advertisement monitoring will be expanded, transaction information from the real transaction system is compared with information on online listings, deleted items for sale after transaction completion, etc., and fines for negligence are imposed promote
In order to expand the use of e-contracts, we explore ways to enhance consumer convenience, such as providing loan services through cooperation with the private sector, and promote activation through e-contract promotion videos and leaflets, etc. do.
Introduce a performance evaluation system for commissioned training by brokers, and strengthen the competitiveness of the brokerage industry
In order to enhance the professionalism of brokers, the introduction of a performance evaluation system for commissioned education for brokers will be promoted.
In addition, the introduction of specialized and specialized education for each field, such as housing, land, and shopping malls, is planned to strengthen the link between practice and education through the specialization of training and education.
It is decided to provide training to enhance brokerage firms’ ability to use new technologies such as proptech, to strengthen brokerage capabilities and create added value.
In order to strengthen qualification management, system improvement such as adjustment of test difficulty and relative evaluation is reviewed in order to adjust the number of passing brokers in consideration of market demand.
However, in order to prevent confusion due to rapid system improvement, research service implementation and phased introduction by setting a grace period are reviewed prior to improvement.
In consideration of the number of certified real estate agents per brokerage office, a plan to introduce an upper limit on the number of brokerage assistants hired, and cooperation with related organizations such as local governments and associations, will strengthen crackdowns on illegal brokerage practices and lending of licenses to unqualified persons such as brokerage assistants.
In order for the brokerage industry to provide comprehensive real estate services, we will promote the establishment of a foundation such as strengthening competitiveness through institutional improvement.
To this end, we will also review measures to improve regulations, such as increasing the legal minimum capital, which is currently set at 50 million won, for brokerage firms with competitive edge to enter the market, and easing restrictions on corporations’ combined business to induce brokerage firms to provide comprehensive real estate services.
For collaboration between the existing offline brokerage industry and the proptech industry, the government, local governments, brokerage industry, proptech industry, experts, and civic groups will form and operate a consultative body to participate and discuss the introduction of a collaborative model between industries and system improvement. Is expected.
The Ministry of Land, Infrastructure and Transport plans to revise the ‘Enforcement Decree of the Chartered Brokerage Act’ and complete the legislative process by November.
Kim Hyung-seok, director of land policy at the Ministry of Land, Infrastructure and Transport, said, “With this improvement plan, we expect that brokerage fees will be improved to a reasonable level, the quality of brokerage services will be improved, and disputes between consumers and brokers will be greatly reduced, contributing to the revitalization of transactions.”
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