The real estate brokerage profession has become an extremely hot profession that attracts a lot of workers these days. However, due to current regulations, not everyone can work as a real estate broker. Indeed, if you want to practice real estate brokerage, you need to meet certain conditions required by law. In this article, LSX legal firm will answer the question: “Do real estate brokers need a license in Vietnam?”
Legal ground
- Law on Real Estate Business 2014
Real estate brokerage under the Vietnamese legislation
Clause 2, Article 3 of the Law on Real Estate Business 2014 defines real estate brokerage as follows:
” Real estate brokerage means acts as an intermediary between parties in the real estate sale, transfer, lease, sublease, lease purchase transactions.”
Article 107 of the 2015 Civil Code stipulates about real estate as follows:
- Land;
- Houses and constructions attached to land;
- Other property attached to land, houses, and constructions;
- Other property as prescribed by law.
Prohibited acts in real estate business
Prohibited acts in the real estate business under the law:
- Firstly, real estate trading does not satisfy the requirements prescribed in this Law.
- Secondly, the real estate projects are not complied with planning approved by competent agencies.
- Thirdly, failure to disclose, or untruthfully disclose about the real estate.
- Fourthly, fraud and deception in real estate trading.
- Fifthly, illegal mobilization of funds; illegal use of mobilized capital of organizations or individuals, and option fees of off-the-plan real estate buyers or lessees for improper purposes.
- Also, failure to fulfill or completely fulfill financial obligations to the State.
- Grant and use of real estate broker license in contravention of the provisions of this Law.
- Lastly, collection of charges, fees, and money amounts related to real estate trading in contravention of the provisions of law.
Principles of real estate business
- Contracting parties have equality before the law; freedom to conclude a contract on the basis of respect for their legitimate rights and interests provided that such agreement is not in contravention of the law.
- Real estate to be put on the market must meet all the requirements prescribed in this Law.
- The real estate trading must be conducted honestly, publicly, and transparently.
- Any organization or individual is entitled to conduct real estate trading in the area beyond the national defense and security protection zone according to land-use planning approved by competent agencies.
Types of real estate to be put on the market
- Existing buildings of organizations or individuals;
- Off-the-plan buildings of organizations or individuals;
- Buildings which are public properties to be put on the market permitted by competent agencies;
- Types of lands whose land-use rights are permitted to be transferred (hereinafter referred to as land), leased, or sublet as prescribed in law on land.
Do real estate brokers need a license?
Article 62 of the Law on Real Estate Business 2014 stipulates the conditions for organizations and individuals providing real estate brokerage services as follows:
“Article 62. Requirements for real estate brokerage service providers
1. Any real estate brokerage service provider must set up the enterprise and there are at least 2 employees obtaining a real estate broker license (hereinafter referred to as broker license), excluding cases prescribed in Clause 2 of this Article.
2. Any individual is entitled to provide real estate brokerage services independently provided that he obtains a broker license and pays taxes as prescribed in law on taxation.
3. Any real estate service provider is not entitled to be both a broker and a contracting party in a real estate transaction.”
Thus, through the above regulation, we answer the question of whether a real estate broker needs a certificate. If a person wants to practice in real estate brokerage, he or she must apply for a license.
Real estate brokerage practice license
An individual can have a broker license if they:
- Have full capacity for civil acts;
- Obtain at least an upper-secondary graduation degree;
- Have passed the examination in real estate brokerage knowledge.
Regulations on real estate brokerage in Vietnam
Rights of real estate brokerage service providers
- Firstly, provide real estate brokerage services as prescribed in the Law on Real Estate Business 2014.
- Secondly, request their clients to provide documents and information about the real estate.
- Thirdly, receive remunerations or commission as specified in the signed agreement.
- Fourthly, hire other real estate brokerage service providers to provide real estate brokerage services within the scope of the signed agreement provided that take responsibility for brokerage results to the clients.
- Also, exercise other rights specified in the agreement.
Obligations of real estate brokerage service providers
- Firstly, abide by the signed agreement.
- Secondly, provide documents and information about the real estate brokered by them and take responsibility for documents and information provided by them.
- Thirdly, support contracting parties in negotiation and conclusion of an agreement on the real estate sale, transfer, lease, sublease, or lease purchase.
- Fourthly, conform to the reporting as prescribed in regulations of law and subject to an inspection carried out by competent agencies.
- Pay compensation for damage caused by the provider.
- Fulfill tax obligations to the State as prescribed in regulations of the law.
- Lastly, fulfill other obligations specified in the agreement.
Real estate brokerage services
- Firstly, look for partners who meet requirements given by clients for agreement negotiation and conclusion.
- Secondly, act as an authorized representative to follow procedures for the real estate sale, transfer, lease, and sublease or lease purchase.
- Thirdly, provide information and support contracting parties in the negotiation and conclusion of an agreement on the real estate sale, transfer, lease, sublease, or lease purchase.
Real estate brokerage remunerations
- The real estate brokerage service providers shall receive remunerations from clients regardless of the results of the real estate sale, transfer, lease, sublease or lease purchase between their clients and a third person.
- The real estate brokerage remunerations shall be agreed upon by contracting parties regardless of the brokerage transfer price.
Legal service of LSX Legal Firm
LSX legal firm provides legal services to clients in various legal areas. To make your case convenient, LSX will perform:
- Legal advice related to new regulations;
- Representing in drafting and editing documents;
- We commit the papers to be valid, and legal for use in all cases;
- Represent to submit documents, receive results, and hand them over to customers.
With a team of experienced, reputable, and professional consultants; The firm is always ready to support and work with clients to solve legal difficulties.
Furthermore, using our service, you do not need to do the paperwork yourself; We guarantee to help you prepare documents effectively and legally.
Also, you will not have to waste time preparing the application, submitting application, or receiving results. At those stages, we will help you do it smoothly.
After all, LSX provides the service with the desire that customers can experience it the best way. Additionally, we guarantee the cost to be the most suitable and economical for customers.
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Related questions
1. Conduct real estate sale, transfer, lease, sublease or lease purchase transactions.
2. Organize the real estate sale, transfer, lease, sublease or lease purchase; publicly provide or post information about real estate to potential clients check documents on the real estate eligible for transactions; act as a broker between contracting parties in negotiation and conclusion of agreement on real estate sale, transfer, lease, sublease, or lease purchase.
1. Organizations and individuals conducting real estate trading in Vietnam.
2. Organizations and individuals involved in real estate trading in Vietnam.
Real estate trading means capital investment in building, purchasing, and receiving real estate for sale, for transfer, for lease, for sublease, or for lease purchase; provision of real estate brokerage services; real estate trading floor services; real estate counseling services or real estate management for profit purposes.
Contact LSX
Finally, hope this article is useful for you to answer the question about “Do real estate brokers need a license in Vietnam?”. If you need any further information, please contact LSX Law firm: +84846175333 or Email: [email protected]
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