🤔What Is Agency Fee? Why Should I Pay It?

     The real estate commission (agency fee) in Korea is **the fee paid to a real estate agent during a property transaction.** It is compensation for the real estate agent's services, including providing expert knowledge, information, legal security, and contract negotiation. It enhances the safety and efficiency of transactions while saving the client time and effort.

     Once the transaction is completed, the agent receives a certain amount of commission from both the tenant and the landlord. The commission varies depending on the type of transaction, such as for residential properties, commercial spaces, or land.

📜Real Estate Commission Application Standards

(According to the Enforcement Rules of the Licensed Real Estate Agents Act)

1. The brokerage fee is determined through mutual agreement between the client and the certified real estate agent within the limit of (the transaction amount) × (maximum commission rate). The maximum limit cannot be exceeded.
   • Basic formula: (Deposit + Monthly Rent × 100) × Maximum Commission Rate
   • The maximum commission rate varies from 0.3% to 0.9% depending on the transaction amount.
2. The payment time of the brokerage fee is determined by the agreement between the certified real estate agent and the client. If no agreement exists, the payment is made on the day the transaction amount for the brokerage subject is fully paid. (i.e., The date of signing the main contract)

📌FAQ

❓Why do I pay more than the maximum limit?

❗In the case of residential properties, depending on the transaction amount, the maximum commission rate can be up to 0.6% and the fee limit can be 300,000 won. However, since many houses in Seoul are often classified as neighborhood living facilities rather than residential properties (a chronic problem in the Seoul real estate market caused by the high land prices), the maximum commission rate can be up to 0.9%.

❓Can I negotiate to lower the real estate brokerage fee?

❗In general, that is almost impossible. The real estate agent has the authority to set the commission rate, which makes it hard to lower the commission. So, we kindly ask for your understanding that Checkmate has limited involvement in that matter.