1. Reasons for Amendment and Major Provisions

To address the recent surge in key money fraud against information-poor groups such as nest-leavers who lack experience in real estate transactions, this Amendment reinforces the obligation of licensed real estate agents to protect real estate consumers when mediating a lease by providing the lessee with an explanation enabling them to check for risks of key money fraud. 

There are also cases where a lessor disguises monthly rent as maintenance fees or otherwise charges excessive maintenance fees to avoid filing lease reports or to underreport their lease income. The Amendment protects brokerage clients’ right to know by requiring licensed real estate agents to provide brokerage clients with an explanation of maintenance fees prior to entering into a contract, and otherwise addresses and improves upon a number of weaknesses that have emerged from the operation of the current system.