Real estate brokers will be required to verify and explain shared maintenance fees for small rental units — including studio apartments and officetels — to prospective tenants. The law will also explicitly state that brokerage fees for residential officetels are to be determined through negotiation between the client and the broker.
The Ministry of Land, Infrastructure and Transport said Tuesday that a partial amendment to the enforcement decree of the Licensed Real Estate Agents Act, containing these provisions, was approved at a Cabinet meeting and will take effect Aug. 28 along with an amended enforcement rule promulgated the same day.
The revised decree adds the verification and explanation of shared maintenance fees for small rental units to the list of mandatory duties for licensed real estate brokers.
Small rental units typically lack a dedicated property management entity, making it difficult for tenants to obtain information about maintenance fees. Costs associated with common areas have often been opaque — a gap some landlords have exploited by inflating maintenance charges to effectively raise rent without formally increasing the stated rental price.
Under the revised rules, brokers must disclose not only the total maintenance fee but also the specific amount of shared maintenance fees to tenants before a lease is signed. The ministry said shared maintenance fees refer to charges that cannot be individually metered or fixed per household — excluding items such as TV license fees and internet service charges, which can be confirmed through meters or are set at a fixed rate.
The amendment also explicitly requires that brokerage fees for residential officetels be set through negotiation with the client. Previously, the law specified only a maximum fee rate without language requiring negotiation, which had led to conflicting interpretations over brokerage fees for residential officetels with an exclusive use area of 85 square meters or less equipped with a private kitchen, flush toilet and bathing facilities.
In addition, the amendment sets out rules governing the organization, operations and executive composition of the Korea Association of Realtors following its establishment as a statutory body. The association's existing articles of incorporation are to be systematically revised going forward, and a code of professional ethics for members will be drawn up and submitted for approval by the minister of land, infrastructure and transport.
"The revision of subordinate regulations under the Licensed Real Estate Agents Act will allow consumers to obtain information about maintenance fees in advance during the housing lease process, which we expect will enhance consumer convenience," said Shin Yun-geun, the ministry's land policy director. "We will continue to identify improvements, large and small, for the benefit of the real estate brokerage industry and the public."
smh@heraldcorp.com
