Implementation of Shortened Real Estate Transaction Reporting Deadline and Mandatory Cancellation Reporting from the 21st

Transaction report deadline shortened from within 60 days to within 30 days from contract date... Obligation to report cancellation, invalidation, or rescission within 30 days from confirmation... Penalties for collusion such as inducing brokerage requests below a certain price

[Asia Economy Reporter Park Jong-il] Seongbuk-gu (Mayor Lee Seung-ro) announced that, following partial amendments to the Act on Reporting and Inspection of Real Estate Transactions and the Licensed Real Estate Agents Act, the revised system will be implemented starting from the 21st.

The Act on Reporting and Inspection of Real Estate Transactions has been amended to shorten the reporting period for real estate transactions (from the current 60 days to within 30 days), mandate reporting of contract cancellations, and add prohibitions against false contract reporting.

According to the amended law, the period for reporting the actual transaction price and other details upon concluding a real estate transaction contract has been shortened from within 60 days of the contract date to within 30 days. Additionally, if the transaction contract is canceled, invalidated, or revoked after reporting, it must be reported within 30 days from the date the cancellation is confirmed.

This applies to contracts first concluded on or after February 21, 2020. Since fines will be imposed for failure or delay in reporting real estate transactions or cancellations, special caution is advised when conducting real estate transactions.

Furthermore, falsely reporting a transaction when no contract was concluded or when the contract has not been canceled after reporting has been added to prohibited acts during real estate transaction reporting. Violators will be fined, and a basis has been established to provide rewards to those who report or accuse such acts.

In addition, the Licensed Real Estate Agents Act has been amended to prohibit acts that disrupt real estate transaction order, such as price collusion, and includes provisions for punishment and the establishment and operation of a reporting center.

Article 33 of the Licensed Real Estate Agents Act prohibits anyone from interfering with the duties of licensed real estate agents with the intent to unfairly influence market prices. Specifically, it prohibits △ inducing residents to list properties at certain prices △ coercing licensed real estate agents not to list properties below certain prices △ encouraging avoidance of licensed real estate agents who list or transact properties below certain prices △ falsely reporting legitimate listings by licensed real estate agents as false listings △ forming groups to influence market prices or restricting joint brokerage with non-members. Violations are punishable by imprisonment of up to three years or fines up to 30 million KRW.

A Seongbuk-gu official stated, “We hope that this legal amendment will improve the accuracy of transaction information, reduce disruptive acts in the real estate market, and establish a sound and transparent transaction order.”

This content was produced with the assistance of AI translation services.