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Is it correct that the charge of violating the Licensed Real Estate Agents Act applies..?

I was trying to proceed with a lease contract for a small commercial unit, but an acquaintance who is not registered as a brokerage office wrote the contract on my behalf and received money in the name of a brokerage fee. However, I later found out that this is a violation of the Licensed Real Estate Agents Act, and I was told that I could also be punished. I merely received help, so I am curious whether this could be a problem even in such a case. And if I am punished, please also let me know what sanctions follow.

Violation of the Licensed Real Estate Agents Act

Answer

Published: 2025-06-30

Author : Byung Joon KOH

Hello. This is a real estate attorney at Daeryun Law LLC.

First, in your situation, your acquaintance may fall under an act of violating the Licensed Real Estate Agents Act.

Under the Licensed Real Estate Agents Act, brokerage activities must be performed by a licensed real estate agent or an affiliated licensed real estate agent of a brokerage office that has been established and registered, and brokerage activities by an unregistered or unqualified person are prohibited by law.

In particular, where a series of acts, such as writing a contract, negotiating transaction conditions, and receiving a brokerage fee, has taken place, the acquaintance may be subject to imprisonment of up to 3 years or a fine of up to 30 million won.

However, if you appear to have intentionally participated in the illegal brokerage activity, you may be treated as an accomplice and face the possibility of punishment, so it is advisable to seek the advice of a criminal attorney.

Your act of paying the brokerage fee is legally void.

Therefore, you can demand the return of the fee already paid, and you should be careful to prevent similar cases from occurring in the future.

In the future, you should carry out real estate contracts only through a formal brokerage office in accordance with the Licensed Real Estate Agents Act, and you must absolutely avoid brokerage activities in the name of a brokerage assistant or an acquaintance in order to prevent legal disputes.

If you need a legal response to a charge of violating the Licensed Real Estate Agents Act or a reporting procedure, please feel free to inquire at any time.

Our firm will assist with all derived legal procedures, such as responding to a charge of violating the Licensed Real Estate Agents Act and a civil claim for the return of the brokerage fee.