Penalties for violations of regulations in the real estate business  in Vietnam

Organizations and individuals doing real estate business must establish enterprises by the law on enterprises or cooperatives by the law on cooperatives. The real estate business is a conditional business line. So how will violations of regulations in the real estate business be punished? Through the following article, Lawyer X will answer the question “The penalty for violation of regulations on real estate business”

Legal grounds

• Housing Law 2014;
• Real estate business law
• Decree 139/2017/ND-CP.

What is the real estate business?

According to Clause 1, Article 3 of the Law on Real Estate Business; Real estate business is the investment of capital to carry out construction activities; buy, receive an assignment for sale or transfer; lease, sublease, lease purchase of real estate; real estate brokerage services; real estate trading floor services; besides, real estate consulting or real estate management services for profit.

From the concept of real estate business, it can be understood that real estate business services include activities; Real estate brokerage, real estate trading floor, real estate consulting; or managing real estate for profit.

Please read along to see the fines for violations of regulations in the real estate business

Types of real estate service business

– Real estate broker

Real estate brokerage is an activity where the broker acts as an intermediary for the parties in the sale and transfer; lease, sublease, lease purchase of a real estate in the provision of negotiation information; Negotiate and sign real estate service business contracts and receive remuneration from customers

– Real estate trading floor

The real estate exchange is an intermediary in the real estate market; where real estate transactions take place, where real estate services are provided; It is a way for the state to manage the real estate market

– Real estate consulting

Construed as answering questions about legal issues related to real estate contracts such as sale and purchase; transfer, guide the application of a regulation, a law or provide information; relevant PL documents when required; At a higher level, real estate consultants must use their legal knowledge and experience to come up with options; Advice to help customers choose the right solution.

• Legal advice on real estate
• Consulting on investment to create real estate business
• Secondly, consulting on real estate finance
• Thirdly, consulting on real estate prices
• Consulting on sale, transfer, lease, and lease purchase contracts

Penalties for violations of regulations in the real estate business

The level of administrative penalties for violations against regulations on real estate service business is specified in Article 58 of Decree 139/2017/ND-CP, specifically as follows:

A fine ranging from VND 10,000,000 to VND 15,000,000

A fine of between VND 10,000,000 and 15,000,000 shall be imposed for one of the following acts:

a) Providing independent real estate brokerage services without a practicing certificate, or the practice certificate has expired as prescribed;

b) Erasing, repairing, lending, leasing or renting, or borrowing real estate brokerage practice certificates to carry out activities related to real estate brokerage.

A fine ranging from VND 30,000,000 to VND 40,000,000

A fine ranging from VND 30,000,000 to VND 40,000,000 shall be imposed for one of the following acts:

a) Trading in real estate services without establishing an enterprise as prescribed; not enough people have real estate brokerage practice certificates as prescribed, or the practice certificate has expired as prescribed;

b) Failing to make a contract or a real estate service business contract that does not contain all the main contents as prescribed;

c) Enterprises providing real estate brokerage services, real estate trading floor services; or individuals providing independent real estate brokerage services fail to comply with the reporting regime as prescribed;

d) The real estate trading floor has no operating regulations; name, address according to regulations or activities in contravention of regulations approved by competent authorities;

đ) Collecting fees for real estate business services that are not regulated by law.

A fine ranging from VND 40,000,000 to VND 50,000,000

A fine ranging from VND 40,000,000 to VND 50,000,000 shall be imposed for one of the following acts:

a) Posting on the real estate trading floor, real estate does not meet the conditions to be put into business as prescribed;

b) Failing to provide, providing incompletely or incorrectly providing documents and information about the real estate that they broker.

Additional Penalties

Suspend the business of providing real estate trading floor services from 06 to 12 months for the act of posting on the real estate trading floor that does not satisfy the conditions for putting it into business as prescribed;

Remedial measures when sanctioning violations of regulations in the real estate business

In addition to the fines for violations of the above regulations in the real estate business, the following consequences must be remedied:

• Firstly, forcible disclosure of full and accurate information on real estate, and housing investment projects by regulations, for the acts specified at Point b, Clause 1 of this Article;
• Forcibly making a contract by regulations or forced to notarize or authenticate the contract for the acts specified at Point c, Clause 1 of this Article;
• Thirdly, forcible compliance with regulations, for acts specified at Point d, Clause 1 of this Article;
• Forcible return of illegal profits obtained from administrative violations, for the acts specified at Point dd, Clause 1 of this Article;
• Besides, forcible renewal of contracts for acts specified at Point a, Clause 2 of this Article;
• Forcing to notify the parties of restrictions and compensation (if any) for the acts specified at Point b, Clause 2 of this Article;
• Forcible return of the difference and compensation for damage (if any) for the acts specified at Point c, Clause 2 of this Article;
• Forcible refund of funds (if required) and compensatory damages (if any) for the acts specified at Points c and d, Clause 3 of this Article;
• Dictated completion of certification procedures or provision of relevant legal documents and documents to buyers or hire-purchasers, for the acts specified at Point dd, Clause 3 of this Article;

Related article:

• Disclosure of real estate information put into a business in Vietnam
• New policies affecting the real estate market 2022 in Vietnam
• Procedures for setting up a real estate brokerage company in Vietnam

Frequently asked questions

Services of Lawyer X

Prestigious professional services: Firstly, the team of consultants and consultants for many years in the field of civil status, and customer support.

On-time: Certainly, with the motto “Get your lawyer right at your fingertips”, we ensure the service always performs on time. The rights and interests of customers always come first.

Cost: Besides, Lawyer X’s service costs are highly competitive; depending on the nature of the particular case. So, we want our guests to have the best possible service experience. Therefore, costs which guaranteed to be the most suitable and economical for customers.

Confidentiality of client information: Finally, all brand personal information of client Lawyer X will be 100% confidential.

Please contact us immediately with questions about the “Penalties for violations of regulations in the real estate business in Vietnam”

Contact LSX Lawfirm

Finally, we hope this article is useful for you to answer the question: “Penalties for violations of regulations in the real estate business in Vietnam”. If you need any further information, please contact  LSX Law firm: at +84846175333 or Email: [email protected]

Conclusion: So the above is Penalties for violations of regulations in the real estate business  in Vietnam. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com