The Korea Association of Real Estate Agents (hereinafter referred to as the Association) announced plans to provide an expense for activities where licensed real estate agents visit properties.
According to the repair industry on the 24th, Kim Jong-ho, who took office as the 14th president of the Association, noted during a press conference held on the 23rd at the Press Center in Jung-gu, Seoul, that "we plan to introduce a system that deducts the expense for property visits from the brokerage fee when a contract is finalized through consultation with a licensed real estate agent."
The Association explained that when consumers visit properties through real estate offices, they will prepay a certain amount of visit expense and later deduct that amount from the brokerage fee if a contract is signed.
The Association asserted, "Since practical labor, such as consultation and guidance, is involved, at least a minimal fair compensation is necessary," and added, "Currently, most cases end without any compensation even when visits are conducted through agents. This leads to an undervaluation of professional expertise."
The Association also mentioned a system where a prior letter of intent to purchase must be submitted for site guidance, similar to in the United States, emphasizing the need for institutionalization. To this end, the Association plans to discuss amendments to the Real Estate Agency Act concurrently.
Chairman Kim also explained, "Please regard the visit expense as a mechanism to strengthen the social responsibility of agents and improve service quality," adding that "the visit expense is not merely a cost charge but part of restoring trust and improving the brokerage order."
Recently, it has been interpreted as a countermeasure aimed at the culture of gathering 'visit crews' in real estate communities to visit sites. However, currently, brokerage fees do not arise if contracts are not finalized, but in the future, there may be a requirement to pay expenses just for confirming properties, which raises concerns that costs could accumulate when visiting properties across various regions, thus increasing consumer burden.