Real Estate Agent Act Violation Lawyer
Real Estate Agent Act Violation Lawyer | Understanding the criminal charge and the license sanction together
The Licensed Real Estate Agents Act (공인중개사법) regulates who may broker real estate transactions, how much they may charge, and what representations they may make to clients. Violations range from operating without a license to charging fees above the statutory cap or making false statements in a listing, and many of these acts carry criminal penalties under the Act in addition to administrative sanctions such as business suspension or license revocation issued by the relevant mayor, county head, or district head (공인중개사법 제38조, 제39조). Because a single incident can be investigated by police and separately reviewed by the licensing authority, the two proceedings need to be managed with a coordinated strategy rather than treated as unrelated matters.
Real Estate Agent Act Violation | What Counts as a Violation Under the Licensed Real Estate Agents Act
Most cases we see fall into one of the following categories. Which one applies determines both the criminal exposure and the type of administrative sanction that follows.
Acting as a real estate broker without registering as a licensed agent, or continuing to broker after registration has been revoked or suspended, is prohibited (공인중개사법 제9조, 제48조). This is treated as one of the more serious violations because it removes the consumer protections the registration system is designed to provide, and it is punishable by imprisonment or a fine.
Local ordinances set a maximum brokerage commission rate depending on the transaction type and price. Receiving fees, or any other money framed as a fee, above that ceiling — including through a side agreement disguised as a separate service charge — is a violation (공인중개사법 제33조, 제38조). Whether an amount is a 'fee' at all is often contested when payments are labeled as consulting or administrative costs.
An agent is barred from becoming a party to the transaction they are brokering (직접거래), and from representing both sides of a sale without proper disclosure in certain cases (공인중개사법 제33조). These cases often turn on whether the agent's family member or affiliated entity was the true buyer or seller.
Advertising a property that does not exist, or advertising with false details about price, area, or rights attached to the property, is separately regulated (공인중개사법 제18조의2). This provision is increasingly enforced against online listing platforms and individual agents alike.
Agents must prepare a confirmation and explanation document (중개대상물 확인·설명서) and explain its contents to the client before a contract is signed (공인중개사법 제25조). Skipping this step, or preparing it inaccurately, is frequently cited when a transaction later turns into a civil dispute and the client also files a complaint with the licensing authority.
One act, two separate proceedings
Because criminal investigation and administrative sanction are handled by different authorities under different standards of proof, a case can end in a criminal fine but still result in license revocation, or vice versa. Each track needs its own evidence and its own timeline to be tracked carefully.
Real Estate Agent Act Violation | How the Criminal Case and the License Sanction Run in Parallel
Understanding which authority does what — and on what timeline — is often the first thing a client needs clarified, because notices from each side can arrive months apart.
Police investigation and prosecutorial review
A complaint from a client, a competitor agent, or a routine local government inspection can trigger a police referral. Once the case moves to the prosecutor's office, the outcome can range from a non-prosecution disposition to summary indictment (fine by written order) or formal indictment, depending on the amount involved and whether it is a repeat violation.
Administrative sanction by the local government
Separately, the mayor, county head, or district head who issued the agent's registration can open its own review and impose a warning, business suspension of up to six months, or registration revocation (공인중개사법 제38조, 제39조). This process follows the Administrative Procedure Act's prior notice and opportunity-to-be-heard requirements, so a written opinion statement matters here.
Why the outcomes can diverge
A criminal case ending in non-prosecution does not automatically stop the administrative sanction, because the two proceedings apply different standards — criminal liability requires proof beyond reasonable doubt of intent or negligence for the specific offense, while the administrative sanction can be based on a broader finding that the statutory grounds for suspension or revocation exist. Preparing evidence for one track with an eye toward the other is often necessary.
Real Estate Agent Act Violation | What Penalties and Sanctions Actually Look Like
The Act sets tiered penalties depending on the type of violation, and administrative sanctions are graded separately by severity and repetition.
Criminal penalty tiers
The Act separates violations into those punishable by imprisonment of up to three years or a fine of up to 30 million won (such as unlicensed brokerage) and lower-tier violations punishable by a fine of up to 5 million won or 10 million won depending on the provision (공인중개사법 제48조, 제49조). Which tier applies depends on exactly which article was violated, not just the general description of the conduct.
Administrative sanction tiers
Administrative sanctions range from a warning or a fine for administrative order violations up to business suspension of up to six months and, for serious or repeated violations, registration revocation (공인중개사법 제38조, 제39조). The specific violation history recorded for the agent (누적 위반 횟수) is often a decisive factor in which tier is applied.
Civil exposure running alongside
A client who suffered financial loss from a violation — for example, an overcharged fee or a transaction based on a false listing — can also pursue a separate civil claim for damages or a refund. This civil claim proceeds independently of the criminal and administrative outcomes, and a favorable result in one does not resolve the other.
⚠ Registration cancellation can bar re-entry for a period
If a registration is revoked for certain grounds, the individual may be barred from obtaining a new registration for a set period (공인중개사법 제10조). Checking which specific ground applies matters because the bar period differs by ground.
Real Estate Agent Act Violation | From Initial Consultation to Case Resolution
We review the complaint, police notice, or administrative sanction notice you received, along with the brokerage contract, fee receipts, and any confirmation and explanation document, to identify which specific provision is at issue.
If a police investigation or prosecutorial review is underway, we prepare a written statement of position and supporting evidence, and represent you at investigative interviews where needed.
For a pending business suspension or revocation notice, we prepare an opinion statement during the prior-notice period and, if a sanction is issued, evaluate whether an administrative appeal or lawsuit for cancellation is appropriate.
Because statements made in one proceeding can be used in the other, we sequence submissions and interview responses to avoid creating inconsistencies between the criminal file and the administrative file.
Once the criminal case and the administrative case both reach a resolution, we advise on any remaining civil exposure and, where relevant, on the conditions for reapplying for registration.
Real Estate Agent Act Violation | How Legal Fees Are Structured
Set based on which tracks are involved — a criminal investigation only, an administrative sanction only, or both simultaneously — and on the stage the case is at when you engage counsel.
Where applicable, discussed separately and tied to a defined outcome such as a non-prosecution disposition, a reduced sanction tier, or a successful administrative appeal, rather than a guaranteed result.
If a business suspension or revocation is challenged through an administrative appeal or a lawsuit for cancellation, separate filing fees and stamp costs apply in addition to the fee for that stage of work.
Costs such as document certification fees, transcription of investigative records, and expert opinions on fee calculation are billed as actually incurred.
※ Costs vary depending on case complexity and specific circumstances; exact fees will be provided during consultation. No specific outcome is guaranteed.
Real Estate Agent Act Violation | Self-Check Before Your Consultation
1️⃣ If You Received a Police or Prosecutor Notice
- Do you know exactly which article of the Licensed Real Estate Agents Act you are alleged to have violated?
- Have you kept the brokerage contract and any messages related to the fee that was charged?
- Is this the first time you have been investigated for a similar issue, or is there a prior sanction on record?
- Have you been summoned for a formal interview, or is the case still at the document-review stage?
2️⃣ If You Received an Administrative Sanction Notice
- Does the notice specify a prior-notice period and a deadline to submit a written opinion?
- Does the notice state whether the proposed sanction is a warning, suspension, or revocation?
- Do you have records showing the actual amount of the fee charged and how it was calculated?
- Has the licensing authority previously issued you any warning or sanction for a related matter?
3️⃣ If You Are the Client Considering a Complaint
- Do you have the confirmation and explanation document the agent was required to provide before the contract?
- Can you show the exact amount you paid as a brokerage fee compared to the statutory fee cap for your transaction?
- Do you have evidence of the listing information you relied on, such as a screenshot or the original advertisement?
- Have you already reported the matter to the local government, or only discussed it directly with the agent?
