Gyeonggi Administrative Appeals Commission: "Even if requested by the contractor, drafting dual real estate contracts is illegal"

Gyeonggi Provincial Government Gwanggyo New Office Building

[Asia Economy (Suwon) = Reporter Lee Young-gyu] The Gyeonggi Province Administrative Appeals Commission has ruled that the six-month suspension imposed on a licensed real estate agent who prepared two different contracts at the request of the contracting parties during a lease agreement is lawful.

The Gyeonggi Administrative Appeals Commission announced on the 14th that it made this decision regarding Mr. A's appeal against City B's 'Cancellation Request of Suspension for Violation of the Licensed Real Estate Agent Act.'

Licensed real estate agent Mr. A, in May 2020, prepared a first contract including a special clause stating, "If the building is sold, the tenant will increase the deposit and rent," at the request of the parties involved in a building lease contract. This was at the landlord's request to initially lease at a low price and later increase the rent when selling the building to enhance its value, and the tenant agreed to this. However, on the same day, they requested to delete the special clause and rewrite the contract with increased deposit and rent amounts, and Mr. A prepared the second contract without discarding the previous one.

City B imposed a six-month suspension on licensed real estate agent Mr. A, citing violation of the Licensed Real Estate Agent Act for preparing two different duplicate contracts.

According to the Licensed Real Estate Agent Act, a licensed real estate agent must not falsify transaction details such as transaction amounts or prepare two or more different transaction contracts when drafting transaction contracts. Violations may result in cancellation of the brokerage office registration or suspension of business for up to six months.

Mr. A filed an administrative appeal requesting cancellation of the suspension, arguing that he did not receive brokerage fees and prepared the contracts at the request of the contracting parties, making the suspension unlawful.

The Gyeonggi Administrative Appeals Commission stated that the purpose of the licensed real estate agent system is to enhance the credibility of real estate transactions between private parties and to establish a fair and transparent real estate transaction order. Even if no compensation was received, the suspension is lawful and appropriate to prevent disputes between contracting parties and to ensure fair brokerage conduct by agents.

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