Chapter 1. General Regulations
This act is constituted so as to manage the real estate broking, to establish the order of the sale of property, to protect the interests of the clients, and to promote a sound development of the real estate market.
The management of broking is carried out in accordance with this act. Any other regulations of related law shall apply to what this act does not specify.
The administrative office termed in this act is Ministry of Interior in the central government, Land Administration Office of the municipal government in a special municipality, or a county (municipal) government.
The definitions of the terms employed in this act are as follows:
1. Property, which means a fixed object on the land or a house and the right of transferring its ownership. “House” refers to a readily available house or a presale house and the right of transferring its ownership.
2. Readily Available House, which means a licensed building or a building of which the construction had been finished before building management was put into practice.
3. Presale House, which means a licensed building that has not finished being constructed and shall become the trading object as soon as its construction is done.
4. Broking Agency, which refers to the company or incorporation dealing with real estate broking or sales stipulated by the regulations of Real Estate Broking Management Act.
5. Broking, which means acting as go-between or representative in the sale, exchange, tenancy of property.
6. Sale, which means being commissioned by tenant-builders or the building industry to undertake the plan for the sale of property and assuming the epresentative position in the sale.
7. Broking Agent, which refers to a broker or an assistant broker. The job of a broker is to deal with broking or the sale of property while that of an assistant broker is to help the broker with the broking or selling businesses.
8. Franchise, which means that, according to the contract signed by two broking agencies, one party, allowed to use the service, the mode of operation, the business trademark or the service logo developed by the other party, shall be managed and supervised by the other party.
9. Price Difference, which refers to the difference between the price at which the property is actually sold and the price requested on commission.
10.Business Office, which refers to a real estate broker’s or salesperson’s shop, office, or extraordinary fixed location.
Chapter 2. Broking Agency
After being issued a permit by the administrative office, a real estate broking agency shall be registered as a company or a profit-going legal person according to law. The broking agency dealing with the broking business and sale of foreign property shall be registered as a company according to law.
The administration office in the central government decides upon the requisite items for the permit and documents necessary for the aforementioned application..
The broking agency should enter the location of its business office in the records of the local government or the municipal government of a special municipality.
One of the following situations will not apply for a permit for operation. Permitted though he or she has been, the permit shall be nullified.
1. Being an incompetent person or a person limited in disposing capacity.
2. Going bankrupt and having not rehabilitated oneself.
3. Committing fraud, breach of trust, crime of misappropriation, article 2 of Prevention of Sexual Aggression, and article 3(1) and 3(2), article 6, and article 9 of Prevention of Organized Crime, which results in a conclusive judgment of more than a year of fixed-term imprisonment. Being still imprisoned or having been pardoned or been out of prison for fewer than three years. Nevertheless, being on probation is excluded from limitation.
4. Accepting a conclusive judgment of reformatory education, still receiving reformatory education, or not having been for three years since the close of reformatory education.
5. Having managed a broking agency of which the permit has been nullified by the administration office; not having been for five years since the first day when the permit was nullified. Nevertheless excluded from this regulation are those who have not started their business beyond the specified time set by Article 7(1) or those who suspend their own business by themselves.
6. Suspension of business ordered by Article 29 and not having come to an end yet.
7. Suspension of business ordered by Article 31 and not having come to an end yet, or not having been for five years since the certificate of a broker was nullified.
After the business registration of a broking agency, the boss, the director, thesupervisor or the manager of it is found in one of the aforementioned situations, the administration office shall order that improvement over the broking agency be done within a given time limit. Should there still be no improvement beyond the specified time, the permit of the broking agency shall be abolished and the dministration office in charge of the business registration of the broking agency will be informed that its business registration shall be abolished.
After being issued a permit by the administration office, a real estate broking agency shall be registered as a company or a profit-going legal person, and enter the local business association, and then begin operation. Operation shall begin within six months. If the operation has not started beyond six months, the administration office shall nullify the permit of the company. To extend the permit with a proper reason is to be accepted. The exhibition period is three months.
After being permitted by the administration office, the aforementioned broking may organize a business association of broking or sale or a national business union according to the nature of business.
After business registration, a broking agency should pay guaranty bond of operation according to the regulation of the central administration office. If the guaranty bond that the broking agency should pay exceeds a certain amount of money, a letter of guaranty provided by a financial institution shall guarantee this excess.
The central administration office shall specify the aforementioned guaranty bond and the way of paying it or offering guaranty.
Besides the payment of the aforementioned guaranty bond, the broking agency shall apply to the aforementioned national business union for the extra payment amount or the correspondence of guaranty provided by a financial institution.
After the aforementioned national business union shall make the ethics principle of broking agency submitted to and passed by the member conference, one shall report to records of the central government.
The aforementioned guaranty bond shall be deposited in the special account of guaranty bond opened in the financial institution named by the national business union together with the Republic of China Business Associations of Broking or Sale. A committee of management shall be organized to keep in charge of the account. The fruits generated by the bond shall be spent on a sound development of the real estate broking system.
The members of the aforementioned committee of management are to be chosen out of broking. The number of the brokers acting as committee members shall not exceed two-fifths of the total number of the committee members. The central administration office shall specify the management regulations of the bond and the organization of the committee of management.
Unless this act specifies otherwise, the guaranty bond shall not be spent under no circumstances other than Article 26(4).
If the guaranty bond a broking agency pays respectively are below the amount specified by Article 7(3), the national business union together with the Republic of China Business Associations of Broking or Sale shall inform that the agency shall make up the payment within a month.
The guaranty bond shall be independent of broking agencies and brokers. Unless this act specifies otherwise, the guaranty bond shall not be transferred, held in custody, and set off, or shall not bear a joint liability for the repayment of a debt due to the broker’s relationship of credit.
Owing to the mergence of broking agencies or the change of the organization of broking agencies, the right of the guaranty bond should be transferred to the new broking agency. Applying for the dissolution of a broking agency, the original broking agency may begin requesting a return of the guaranty bond exclusive of the fruits generated from the guaranty bond one year after dissolution is permitted. Such a request of refund shall be presented within the following two years.
Local business associations should report the situations of the members’ entrance into business associations, suspension of rights, and withdrawal from business associations to local administration offices that shall transfer these reports to the records of the central administration office.
A broking agency should install at least a broker in a business office. Nevertheless, a broking agency should install at least a professional broker in an extraordinary business office, which makes over 600 million NT dollars.
A broker shall be added to every additional twenty assistant brokers in a business office.
Within the first fifteen days of the brokers’ report for duty, a broking agency should report the name list of brokers to local administration offices that shall transfer these reports to the records of the central administration office. When a change in personnel happens, the same thing shall be done.
Chapter 3. Broking Agents
The citizen who has passed the qualification examination of real estate brokers and who is issued a certificate of a real estate broker according to Real Estate Broking Management Act may serve as a real estate broker.
Whoever has passed the qualification training of real estate assistant brokers or the qualification examination of brokers sponsored by the institution designated by the central administration office or institution organization acknowledged by the central administration office and may serve as an assistant real estate broker. The rules of the qualification examination of real estate assistant brokers are to be made by the central administration office.
The training of aforementioned real estate assistant brokers shall not be less than thirty hours, whose certificates are valid for four years. Expired, assistant brokers shall submit to the certified document of thirty-hours professional training program to the institution or organization, and register on the institution or organization designated by the central government.
The central administration office shall make the aforementioned fee of registration and certificate.
The rules of acknowledging qualification and process of institution, the rule of abolishing acknowledgment, the training qualification, training program and the fee of the assistant, and other obeyed rules shall be made by the central administration office
Those who have passed the qualification examination of real estate brokers should have more than one year of experience in working as assistant brokers before they apply to local governments for certificates of brokers.
The aforementioned experience in working as an assistant broker shall be acknowledged according to one of the following situations.
1. Having acquired the qualification of an assistant broker and having an income tax payment report of a real estate broker or a salesperson.
2. Having worked as a real estate broker or a salesperson and having an income tax payment report before the announcement of Real Estate Broking Management Regulations.
Those who are found in one of the situations specified in Article 6 (1) I~ iv or in Article 6(1) vii shall not serve as brokers. If they have already been brokers, their certificates or licenses shall be nullified or be abolished.
The aforementioned certificate of a real estate broker is valid for four years. Expired, a new one shall be applied for to local governments by submitting the certified documents of the broker’s thirty-hour professional training program taken in the institution acknowledged by the central administration office within the latest four years.
The rules of acknowledging the institution and organization qualifications, process of acknowledgement, training program and abolition of acknowledgement shall be made by the central administration office.
A broker should work exclusively for one broking agency and shall not work for himself or herself or other agencies for broking and sale. Should the agency to which he or she belongs agrees that he or she may work for other broking agencies, this article shall not apply to him or her.
The broking agency shall not employ those who are not equipped with the qualification of a real estate broker for broking or sale.
Chapter 4. Work and Duty
The permit of a broking agency, the documents related to the broking and sale of property, and the brokers’ certificates should be displayed in an obvious place in the business office. A franchised agency should make its franchise noted.
A broking agency or a broker shall not receive any price difference or other repayment. The broking agency should receive the standard repayment out of the real fixing price or rental specified by the central administration office.
Violating this regulation, the broking agency or the broker should pay back the payer double the price ifference or other repayment that has already been received plus interests.
A broking agency should display the criteria of repayment and the way of receiving it in an obvious place in the business office.
After a broking agency signs a contract with the client, the broking agency may advertise and begin dealing with sale.
The aforementioned advertisement and sale should coincide with reality and the title of the broking agency should be noted.
Should the advertisement and sale not coincide with reality, the broking agency shall pay for the loss.
The sale and purchase, trade, lease or representative in the sale of real estate are dealt with broking or the sale of property by a broking agent. The broker designated by the broking agency should sign the following documents.
1. An entrusted contract of renting or selling property.
2. An offering document of rental and purchase.
3. A receipt of earnest.
4. A draft of the advertisement of property.
5. An instruction of property.
6. A contract of the sale and purchase, or the lease of property.
The aforementioned article 22(1)( i.),(ii) shall not apply to a real estate salesperson.
The central administration office shall decide on what should be described in the instruction as to the aforementioned article 22(1)(v) and what should not.
While at work, the broker should explain the instruction of property to the counterpart with whom the trustor deals.
Before the explanation of the aforementioned instruction, the trustor should sign it.
When the clients of both parties sign the contract of rental or sale and purchase, the broker should submit theinstruction to the counterpart with whom the trustor deals and the counterpart shall sign on it.
The aforementioned instruction is regarded as part of the contract of rental or sale and purchase.
For trading and rental of Appointed Cases, a brokerage agency should declare the real estate transaction information to the administration office after signing the trading contract and completing the ownership transaction registration or the signing of the rental contract within 30days.
For the consigned case of tenant-builders or the building industry, a sale agency should declare the real estate transaction information to the administration office at the expiration of the consigned contract or termination within 30 days.
Upon accepting the declared real transaction information in the preceding two paragraphs, the central administration office may authorize its subordinate authority to handle the matter.
Except for personal information, the government may utilize the registered transaction information of the preceding three paragraphs to provide the district a basis of the real estate transaction information for inquiry without revealing personal data.
The registered real estate transaction price information shall become a basis for taxation only until complementary laws are enacted.
Rules of the registered types and contents in the preceding first and second paragraphs and the provision of information contents, ways, fees and other matters to follow in the preceding fourth paragraph shall be formulated by the central administration office.
A brokerage agency by trading or rental of parties in a written agreement, may accept both commissions and practice in accordance with the following prescriptions:
1. Provide fair prices to the parties similar to the real estate transaction prices.
2. Provide fair contract description to the parties.
3. Provide the buyer or lessee of real estate necessary information.
4. Inform the buyer or lessee in accordance with agency profession to check on real estate defects.
5. Assist the buyer or lessee of real estate to carry out the necessary checks.
6. The prescription by the central administration office for the protection of the parties of the trading or the rental.
A broker shall keep classified the secrets of others he or she knows on account of performing business.
A broking agency shall be liable to pay compensation for the trustor’s loss resulting from the broking agency failing to realize the contract.
The broking agency and the broker shall bear a joint liability for the compensation for the client’s loss resulting from the broker’s performance of business or the salesperson’s intentional act or misconduct.
The aforementioned victims’ recourse to the Republic of China Real Estate Broking or Sale Business Associations and the national business union for representative compensation is to be regarded as their application to the committee of guaranty bond management for reconciliation. The committee shall begin reconciliation.
While the victim obtains the nominal execution over the broking agency or the broker, after arbitral settlement or the resolution of payment made by the committee of guaranty bond management, he or she may have recourse to the Republic of China Real Estate Broking or Sale Business Associations and the national business union for representative compensation within the total amount of the guaranty bond and within the total amount guaranteed by the guaranty bond deposited by the broking agency. Following representative compensation, the broking agency shall be informed of making up the guaranty bond within the specified time according to Article 8(4).
When the administration office examines the business of a broking agency, the broking agency shall not refuse.
Chapter 5. Award and Penalty
If a broking agency or a broker is found in one of the following situations, the administration office shall honor the broking agency or the broker. In a special municipality, the administration office of the special municipality shall do it. The extremely distinguished broking agency or broker shall be reported to the central administration office for honor.
1. Being Outstanding in keeping the safety and fairness of trading property and in promoting a sound development of real estate broking.
2. Being Outstanding in protecting the interests of the purchasers.
3. Offering important contribution or suggestion to the research into the laws related to real estate broking.
4. Having other special events acknowledged by the administration office.
The central administration office shall make the rules of the aforementioned system of award.
The brokerage agency, which violates this act, shall be penalized according to the following regulations：
1. Those who violate Article 12, Article 18, Article 20, or Article 27 and who have not rectified themselves within the time limit given by the administration office shall be fined between thirty thousand and one hundred and fifty thousand NT dollars.
2. Those who violate Items Ⅰ,Ⅱof Article 24-1 or Article 24-2, shall be fined between thirty thousand and one hundred and fifty thousand NT dollars.
3. Those who violate Article7 ( 6) , Article 11, Article 17, Article 19 (1) , Article 21 (1) and (2) or Article 22 (1) shall be fined between sixty thousand and three hundred thousand NT dollars.
4. Those who violate Article 7 (3) and (4) or Article 8(4) shall be suspended. Suspension of business shall not be lifted until the brokerage agency makes up the guaranty bond. Nevertheless, if suspension of business lasts for one year, the permit of the broking agency shall be abolished.
Those who are fined according to sections 1 ,2 or 3 above and who have not rectified themselves within the time limit shall receive be penalized each time.
The enforcement date for Article 24-1,24-2 and the second part of the first paragraph of this Act is enacted by Executive Yuan.
The local administration office shall nullify the permit of the broking agency that, after operation of business, has suspended its business automatically for over six months in a row. Nevertheless, the broking agency that applies for suspension of business by law is excluded from this regulation.
The broker who violates this act shall be punished for the following regulations：
1. The broker who violates Article 16, 22(1), Article 23 or Article 25 shall receive reprimand.
2. The broker who violates Article 19(1) shall be faced with suspension of business lasting for more than six months or fewer than three years.
The broker who has been reprimanded three times shall be faced another suspension of business lasting for more than six months or fewer than three years. The total time of suspension of business amounts to five years, which will result in the abolition of the certificate of a broker.
The administration office shall ban those who do not run a broking agency or who are not real estate salesmen from dealing with the business of property. Violating this regulation, the boss of the company or the doer shall be fined between one hundred thousand and three hundred thousand NT dollars.
Having been banned from operation by the administration office according to the aforementioned regulation, the boss of the company or the doer who stills continues operation shall be sentenced to less than one year in prison, faced with criminal detention, or fined between one hundred thousand and three hundred thousand NT dollars.
If a broker violates one of the sections specified in Article31(1), the related interest party, the administration offices of all levels, or his or her business association shall list the facts, provide evidence, and refer him or her to the local administration office for reprimand.
Local administration offices should organize a committee of award and penalty in charge of the brokers’ award and penalty.
The central administration office shall make the rules of the organization of the aforementioned committee of award and penalty.
When the aforementioned committee of award and penalty accepts a case of penalty, they should inform the impeached or referred broker that he or she may offer a self-defense or make a statement before the committee within twenty days. The committee shall jump into final judgment if the impeached or referred broker does not offer a self-defense or make a statement before the committee within twenty days.
After being informed of paying the fine specified in this act, those who still do not pay the fine beyond the dead line shall be referred to the court for enforcement.
Chapter 6. Supplementary Provisions
Those who served as real estate brokers or salespeople before the announcement of this act should acquirecertificates of broking according to the regulations specified in this act within three years after the realization of this act and then continue operation.
Article 32 shall apply to those who violate what has been specified on the above and who still continue operation.
Those who served as real estate brokers before the realization of this act may continue operation for the next three years after the day of the realization of this act. Those who will not have acquired the qualification of brokers in three years shall not continue operation.
After being considered qualified by the central administration office, those who has served as real estate brokers or salespeople for exactly two years before the realization of this act and who have documentary proofs of operation and income tax reports may continue operation for the next three years after the day of the realization of this act and shall take the civil examination of real estate brokers.
The aforementioned civil examination should be held at least five times within five years after the announcement and realization of this act.
Foreigners may take the qualification examination of real estate brokers or the training of salespeople according to the law of the Republic of China. The foreigners, who have the licenses or who have qualification of training, and register according to Article 13 (2) and have certified documents, should acquire the permit issued by the central administration office, obey all the laws of the Republic of China, and then may be employed as real estate brokers.
Foreigners, who have been permitted to work as brokers in the Republic of China, should use the writing system of the Republic of China on the documents and illustrations related to business.
The fee of issued the licenses of real estate brokers shall be charged according to the article. The central administration office shall make the fee by the rule.
The central administration office shall make the detailed regulations on realization for this act.
This act shall be effective from the date of its promulgation.