Penalties for the scope of regulations on real estate business in Vietnam
Organizations and individuals doing real estate business must establish enterprises in accordance with the law on enterprises or cooperatives in accordance with the law on cooperatives. The real estate business is a conditional business line. So, how will violations of regulations on real estate business be penalized? Today, LSX Lawfirm will give you an article about “Penalties for the scope of regulations on real estate business in Vietnam “, as follows:
Legal grounds
Law on Housing 2014;
Real estate business law
Decree 139/2017/ND-CP.
What is real estate business?
According to the provisions of 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 assignment for sale or transfer; lease, sub-lease, lease-purchase real estate; real estate brokerage services; real estate trading floor services; and 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 manage real estate for profit.
Please read along to see the fines for violations of regulations on 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 the 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
- Consulting on real estate finance
- Then Consulting on real estate prices
- And Consulting on sale, transfer, lease, and lease purchase contracts
Fines for violations of regulations on real estate business
The level of administrative sanctions for violations of 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 ranging from VND 10,000,000 to VND 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) Erase, repair, lend, lease or rent or borrow 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; there are not enough people with 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;
e) 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) Firstly, Posting on the real estate trading floor, real estate does not meet the conditions to be put into business as prescribed;
b) Secondly, Failing to provide, incompletely or incorrectly providing documents and information about the real estate that they broker.
Additional penalty
So 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 to be put into business as prescribed;
Remedial measures when sanctioning violations of regulations on real estate business
In addition to the fines for violation of the above regulations on real estate business, the following consequences must be remedied:
- Forcing to disclose fully and accurately information on real estate and housing investment projects in accordance with regulations, for the acts specified at Point b, Clause 1 of this Article;
- Forcing a contract to be made in accordance with regulations or forcible notarization or contract authentication for the acts specified at Point c, Clause 1 of this Article;
- Forcible compliance with regulations, for acts specified at Point d, Clause 1 of this Article;
- Then Forcible return of illegal profits obtained from committing administrative violations, for the acts specified at Point dd, Clause 1 of this Article;
- Forcing contract renewal for the acts specified at Point a, Clause 2 of this Article;
- Forcing to notify the parties of restrictions and compensation for damage (if any) for the acts specified at Point b, Clause 2 of this Article;
- Forcible refund of the difference and compensation for damage (if any) for the acts specified at Point c, Clause 2 of this Article then ;
- Forcible refund of funds (if requested) and compensatory damages (if any) for the acts specified at Points c and d, Clause 3 of this Article;
- And Forcible completion of procedures for certification or provision of relevant legal documents and documents to the purchaser or hire-purchaser, for the acts specified at Point dd, Clause 3 of this Article;
Related article
- Can foreign enterprises do real estate business in Vietnam?
- Conditions for foreign investors do real estate business services
- Scope of real estate trading conducted by foreign-invested enterprises
Related questions
Accordingly to Article 60 of the Law on Real Estate Business, domestic organizations and individuals, overseas Vietnamese, foreign organizations, and individuals have the right to conduct business in real estate brokerage services, trading floors. real estate, real estate consulting, real estate management according to the provisions of this Law.
Firstly, Real estate brokerage service contract;
Secondly, Real estate consulting service contract;
Thirdly, Real estate management service contract.
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