"Separate Fee for Property Tours Proposed, Stirring Debate... Ministry of Land: 'Illegal If Collected'"

Possible Suspension, Revocation, or Criminal Penalties for Violations
Korea Association of Realtors Cites "Growing Burden From More Property Tour Crews"
Consumers Push Back Against "Fees From the Property Viewing Stage"

The Korea Association of Realtors raised the need to introduce so-called "property tour fees" (imjangbi), which would be basic compensation for providing property tours even if a transaction does not conclude. However, the Ministry of Land, Infrastructure and Transport immediately stepped in to block the proposal. The ministry clarified that even if a realtor and a client separately agree on a fee for site visits, it is not permissible to receive any additional payment beyond the legally prescribed brokerage commission and actual expenses.

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"Deducted from Commission If Contracted"... The Imjangbi Controversy

The debate began last month when the Korea Association of Realtors raised the need for a "basic property tour fee system." The rationale was that as the number of so-called "property tour crews" without clear intention to buy or rent has grown, realtors often spend significant time and money explaining listings and providing on-site tours, but receive no compensation if a deal is not closed.

The approach discussed at the time involved collecting the property tour fee first and then deducting this amount from the final brokerage commission if a contract was signed. For example, if the client paid 20,000 won as a property tour fee and completed a contract, 20,000 won would be deducted from the brokerage commission; if no contract was signed, the fee would be retained as on-site guidance cost.

The association later explained that no specific amount or method of implementation has been finalized, and that the idea was primarily aimed at situations where additional services, such as providing a "property report," are offered, rather than simply introducing properties.

Ministry of Land: "Separate Property Tour Fees Not Allowed"

The Ministry of Land, Infrastructure and Transport stated that even such separate agreements are not permitted. The ministry explained, "According to Article 33 of the Certified Real Estate Agents Act, business realtors are prohibited from receiving money or valuables beyond the commission or actual expenses prescribed by Article 32, under any pretext of reward, donation, or otherwise. Therefore, compensation for property tour fees is not allowed." This means that even if a realtor and a customer make a separate contract to pay a certain amount per site visit, they cannot receive a property tour fee.

The ministry further stated, "Article 33 prohibits business realtors from receiving money or valuables in excess of the legal brokerage commission or actual expenses," and added, "Violation may result in administrative sanctions such as suspension or revocation of license, or suspension of business operations. Criminal penalties are also possible, and under Article 49 of the Certified Real Estate Agents Act, offenders can face up to one year of imprisonment or a fine of up to 10 million won."

The Brokerage Industry: 'Unpaid Labor'... Consumers Push Back

The brokerage industry is voicing concerns about the work burden associated with property tours. They claim that verifying property rights and providing site tours require time and expense, but there is no separate compensation if a contract does not materialize.

Real estate study site visit. Photo by Yonhap News Agency

Consumers, on the other hand, are negative about additional fees. Online, responses included: "Do I have to pay even if I’m only shown properties I don’t like?", "The brokerage commission is already a burden, so why charge fees from the property viewing stage?", and "I’d rather use direct transaction platforms like Danggeun Market."

There are growing concerns that property tour fees could become an extra cost for genuine buyers or renters who need to compare multiple listings. Even if the fee is deducted from the commission upon contract, customers must bear the full cost in cases where no contract is finalized.

Will the Brokerage Commission System Be Reformed?

The controversy is prompting broader questions about the current brokerage commission system. Critics argue that because residential brokerage commissions are set within an upper-limit rate based on transaction amount, they do not adequately reflect actual work volume or service quality.

Given the government's clear stance that property tour fees are not allowed under current law, some argue that, to charge a separate fee, the scope of specialized services distinct from ordinary brokerage work and their legal grounds must first be established.

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