Government announces plan to improve brokerage fees… Commission upper limit based on trading 900 million won → 8.1 million → 4.5 million
Industry “Unacceptable to push for a unilateral cut in brokerage fees”… Expert: “The cause of the surge in real estate”
[한스경제=김준희 기자] The government has decided on a plan to revise the real estate brokerage commission rate, which will actually be lowered to the level of ‘half’, and plan to apply it from October at the earliest. Industry and experts agreed, “The cause of market instability caused by rising house prices should not be passed on to real estate agents.”
On the 20th, the Ministry of Land, Infrastructure and Transport confirmed and announced the ‘Real estate brokerage compensation and brokerage service improvement plan’.
In the final revision plan announced on the same day, the transaction fee rate was maintained as it is, but only the 600 million won to 900 million won section of the rental transaction was adjusted by reflecting the opinions of the brokerage industry. In the lease brokerage fee reform plan, 0.3% and 0.4% rates will be applied for the 100 million won to 600 million won and 600 million won to 1.2 billion won, respectively, 0.5% for 1.2 billion won to 1.5 billion won and 0.6% for more than 1.5 billion won.
An official from the Ministry of Land, Infrastructure and Transport said, “We reduced the upper limit rate for sales of 600 million won or more and rentals of 300 million won or more, where the proportion of transactions increased, thereby reducing the burden of remuneration. By subdividing the 900 million won to 1.5 billion won section, the highest section of over 1.5 billion won was newly established and the surge in remuneration burden caused by the increase in transaction amount was alleviated. he explained.
If the revised remuneration system is applied, the upper limit of the 900 million won commission will be lowered from 8.1 million won to 4.5 million won, and the 1.2 billion won commission will be lowered from 10.8 million won to 7.2 million won. The upper limit of the rental contract fee will be cut in half from 4.8 million won to 2.4 million won for 600 million won and from 7.2 million won to 3.6 million won for 900 million won.
The government will immediately begin to amend the enforcement rules of the Chartered Brokers Act to reflect this reorganization, and directly stipulate the upper limit of the rate. Brokerage commission rates cut nationwide from October are expected to be applied at the same time.
In addition, in order to improve the quality of brokerage services, the limit of liability guarantee (deductible by the Association of Realtors) of certified real estate agents has been raised from 100 million won per year for individuals and 200 million won per year for corporations to 200 million won and 400 million won, respectively. The statute of limitations on the right to claim damages from the Association of Brokers will be increased from the current two years to three years, which is the same as the statute of limitations for the right to claim damages under the Civil Act.
Considering the market demand for brokers, system improvement such as adjustment of test difficulty and relative evaluation to adjust the number of passers will also be reviewed. Considering the number of certified real estate agents per brokerage office, the plan is to introduce an upper limit on the number of brokerage assistants hired, and to strengthen crackdowns on illegal brokerage acts such as local governments and associations and lending of licenses.
In order to resolve conflicts between the offline brokerage industry and the proptech industry, which have recently become a hot potato, a consultative body will be formed and operated, and the introduction of a collaborative model between industries and system improvement will be discussed.
◆ Industry and experts “The cause of unrest in the real estate market is the surge in house prices… You must not take responsibility.”
While the government has actually introduced a ‘half-price welfare fee’ reform plan, the brokerage industry is still strongly opposed to it. Previously, an online discussion forum was held to collect opinions from all walks of life, but the position was that it could only be viewed as a ‘unilateral notification’ in that the final proposal was announced in just three days.
In a statement, the Korea Real Estate Brokers Association issued a statement saying, “It is unacceptable for the Ministry of Land, Infrastructure and Transport to ignore the reality of the brokerage business and promote a unilateral reduction in brokerage fees without sincere consultation with the association by promoting an overall brokerage fee reduction policy for the sake of condescension.” As the discussion sparked in the section expands to the discussion of the entire brokerage fee, an approach that lowers the overall brokerage fee has a significant problem.”
The association criticized the government for shifting responsibility for the surge in house prices to real estate agents due to the failure of the real estate policy. “The reorganization of brokerage fees is a matter of real estate agent’s right to survive,” he said.
Currently, it is known that some local authorized real estate agencies have entered into a joint closure in protest of the government announcement.
Experts say that the adjustment of the brokerage fee rate itself is positive. Lee Eun-hyeong, a senior researcher at the Korea Construction Policy Research Institute, said, “The key to this improvement plan is to lower the upper limit for sales of 600 million won and rentals of 300 million won or more, and to subdivide and establish sections of high-priced houses with more than 900 million won. Since it is an adjustment, the content itself is positive. The resolution of the inversion of rental rates and sales rates is also a welcome part,” he said.
He added, “The increase in the limit of liability guarantees of certified real estate agents, which has been pointed out in the past, and the strengthening of the multi-family housing confirmation manual are also positive aspects.”
However, he said, “Considering the rise in real estate prices, there are some things that are disappointing.” “If, for example, the previous 500 million won apartment cost 1 billion won, the brokerage fee for a 1 billion won apartment is 2.5 times higher than the 500 million won apartment in this reorganization plan. The liability guarantee limit is also the highest limit, not a flat-rate compensation, so it is regrettable that a higher limit was applied.”
Senior Researcher Lee pointed out that the real estate market problems are not caused by real estate agents. He said, “As real estate prices have risen sharply in recent years, the controversy over excessive brokerage fees has been highlighted as the previous mid-to-low-priced houses became the middle- to high-priced range,” he said. ” he asserted.
Regarding the adjustment of the test difficulty to adjust the number of qualified real estate agents, he said, “I cannot be sure of the effectiveness of the reorganization by limiting the number of new certified real estate agents. pointed out