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The judgment of the court below is reversed, and the case is remanded to the Seoul Western District Court Panel Division.
Reasons
The grounds of appeal are examined.
1. On the grounds of appeal Nos. 2, 3, and 4, the lower court, based on its stated reasoning, determined that the Defendant is liable to pay the Plaintiff mutual aid money equivalent to the Plaintiff’s damages pursuant to the mutual aid agreement entered into with the said D, on the premise that a licensed real estate agent D neglected the duty to verify whether he/she has legitimate authority to conclude a lease agreement with the lessor E in mediating the conclusion of the instant lease agreement.
The judgment below
Examining the reasoning in light of the relevant legal principles and records, the above determination by the court below is just, and contrary to what is alleged in the grounds of appeal, there were no errors by misapprehending the legal principles as to the existence of a broker corporation’s negligence and the cause of the Plaintiff’s damage, and the causation between negligence
2. Regarding ground of appeal No. 1
A. Article 25(1) of the Licensed Real Estate Agents Act explicitly states that a practicing licensed real estate agent whose brokerage is requested has the duty to verify the relationship of rights, etc. of the object of brokerage and explain it to the brokerage client. Since the relationship of rights includes matters concerning the right holder of the object of brokerage, a practicing licensed real estate agent has the duty to investigate and confirm whether a person who intends to sell, etc., in good faith and trust
(see, e.g., Supreme Court Decision 2011Da21563, Jul. 14, 2011). Meanwhile, where a real estate transaction party delegates a real estate transaction brokerage to a broker, the broker is obligated to investigate and confirm the relationship of rights of the object of brokerage in accordance with the purport of delegation and is liable for compensating for damages arising therefrom if the transaction party breached its duty of care. However, the broker is entirely liable for the investigation and confirmation of the transaction relationship that the principal owes to the transaction party who delegates the brokerage.