A Study on the Indication and Advertisement of Seized and Enjoined Real Estate

The Enforcement Decree of the Licensed Real Estate Agents Act and the Minister of Land, Infrastructure, and Transport's Notice list the types of unjustice indication and advertisement and matters to be specified when unjustice indication and advertisement that violates Article 18-2 (Paragraph 4) of the Licensed Real Estate Agents Act is made or the brokerage of the brokerage object is displayed or advertised in violation of Article 18-2 (1) or (2) of the Licensed Real Estate Agents Act. The "Types and Criteria for Unjustice Indication and Advertisement of Real Estate Brokerage Objects“ states that these are just a few examples of the most common types of real estate brokerage object indication and advertisement (Notice #4). This notice may expand the list of penaltyable offenses. Article 5, Paragraph 2 (3) of the Notice stipulates that "the indication or advertisement of a brokerage object is made when its disposal is restricted due to seizing or injunction for the prohibition of disposal or it is clearly not allowed to be traded under relevant laws and regulations.“ In other words, seized and enjoined real estate are stipulated as typical examples of "brokerage objects that exist but cannot actually be the subject of brokerage". However, no provision in the relevant laws on seized real estate subject to being auctioned off or enjoined real estate prohibits the transaction or deprives the owner of the right to dispose of the property. Therefore, stipulating seized or enjoined real estate as an unjustice indication and advertisement type on the premise of prohibition of transaction and disposal, although stipulating seized and enjoined real estate is not prohibited from being traded or the right to dispose of it is not absolutely restricted, has no basis in the law and is beyond the limits of delegated legislation. The indication and advertisement of the brokerage transactions of seized or enjoined real estate shall be allowed, not prohibited, and it shall be handled as a matter of disclosure, explanation, or confirmation and explanation obligations of a licensed real estate agent.