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Government Issues New Regulations on Real Estate Trading Floor Operations |
Registration for Real Estate Trading Floor Operations (*)
According to the Decree, organizations or individuals intending to establish a real estate trading floor must submit the prescribed dossier to the provincial-level state management agency for real estate business, where the head office of the real estate trading floor is located (by direct submission, postal system, or online submission), to obtain an operating license.
The registration dossier includes: 1- Application form for real estate trading floor operations (as per the model in Appendix XVII); 2- Enterprise registration certificate as prescribed in Clause 5, Article 9 of the Law on Real Estate Business; 3- Papers proving the right to use the head office of the real estate trading floor; 4- Copy of the certificate of completion of the management and operation training course for the manager of the real estate trading floor; 5- List of real estate brokers who have been granted practice certificates.
Within 15 working days from the date of receipt of the complete dossier, the provincial-level state management agency for real estate business shall be responsible for inspecting the dossier and granting an Operating License to the real estate trading floor (as per the model in Appendix XVIII). If refused, a written notice must be provided, stating the reason. After granting the Operating License, the provincial-level state management agency for real estate business shall report to the Ministry of Construction to post information about the real estate trading floor on the Ministry’s electronic information page. The information of the real estate trading floor includes: Name of the real estate trading floor; Name of the enterprise establishing the real estate trading floor; Name of the manager of the real estate trading floor; Address and contact number of the real estate trading floor.
In case of any changes in the name, address of the head office, legal representative, or other contents of the registration dossier, within 10 working days from the date of the decision to change, the real estate trading floor must send a written notice to the provincial-level state management agency for real estate business where the real estate trading floor is registered for establishment and operation to be granted a new Operating License. The provincial-level state management agency for real estate business shall report to the Ministry of Construction for management and posting of information.
Conditions for Operation of Real Estate Trading Floors
The Decree stipulates that real estate trading floors must meet the conditions prescribed in Article 55 of the Law on Real Estate Business.
The legal representative of the enterprise and the manager of the real estate trading floor shall be responsible for the operation of the real estate trading floor. The legal representative of the real estate trading floor can also be the manager of the real estate trading floor.
The real estate trading floor must have a stable name, transaction address for over 12 months, and technical facilities that meet the requirements of the real estate trading floor’s operation.
Real estate trading floors are responsible for implementing anti-money laundering measures and reporting on anti-money laundering in accordance with the law on anti-money laundering.
Activities of Real Estate Trading Floors
According to the Decree, real estate trading floors operate according to the provisions of Article 56 of the Law on Real Estate Business.
Confirmation of real estate transactions is carried out as follows:
Real estate transactions conducted directly shall be confirmed in writing. In the case of electronic real estate transactions, electronic confirmation shall be made in accordance with the Law on Electronic Transactions, the law on electronic commerce, and relevant legal documents.
The written confirmation of the real estate transaction must include the signatures of the representative of the enterprise, which is the project investor or owner of the real estate, the representative of the real estate trading floor, the individual broker(s), and the seal of the enterprise corresponding to the transaction method.
Management of Real Estate Trading Floor Operations
The Decree stipulates that the provincial-level state management agency for real estate business shall be responsible for managing, supervising, and inspecting the operation of real estate trading floors as prescribed in Point a, Clause 1, Article 60 of the Law on Real Estate Business.
The granting of Operating Licenses shall be implemented according to the above-mentioned regulations (*).
Re-granting of Operating Licenses for Real Estate Trading Floors
According to the Decree, the provincial-level state management agency for real estate business shall re-grant the Operating License in case the License is lost, torn, burned, destroyed in other forms, or when there is a request from the real estate trading floor to change the information as prescribed in Clause 3, Article 14 of this Decree.
The real estate trading floor must submit a dossier to the provincial-level state management agency for real estate business, where the Operating License was granted (by direct submission, postal system, or online submission), to be re-granted the Operating License. The dossier for re-granting the Operating License includes: Application form for re-granting the Operating License (as per the model in Appendix XIX); Original Operating License (in case of damage).
After receiving the valid dossier, the provincial-level state management agency for real estate business shall inspect the dossier and re-grant the Operating License (as per the model in Appendix XX) within 05 working days. The re-granted Operating License shall retain the original license number to maintain the link with the dossier and data.
In case of refusal to re-grant the Operating License, the provincial-level state management agency for real estate business must notify in writing, stating the reason for the refusal.
Revocation of Operating Licenses and Termination of Operations of Real Estate Trading Floors
The provincial-level state management agency for real estate business shall issue a decision to revoke the Operating License and terminate the operation of the real estate trading floor in the following cases:
1- If the real estate trading floor violates the regulations in Article 8 of the Law on Real Estate Business and other relevant laws. Within 07 working days from the date of revocation of the Operating License, the provincial-level state management agency for real estate business shall notify in writing the Ministry of Construction, the local tax agency, and the place of business registration about the revocation of the Operating License of the real estate trading floor.
Within 60 days from the date of revocation of the Operating License, the real estate trading floor must pay all outstanding taxes, settle other debts, complete the procedures for terminating labor contracts with employees, and, for service contracts signed with customers but not yet completed, reach an agreement with the customers on the implementation of such service contracts.
2- If the real estate trading floor voluntarily terminates its operation, it must notify in writing the provincial-level state management agency for real estate business and the local tax agency of its intention to terminate operations no later than 30 days before the expected termination date.
Within 07 days from the date of receipt of the written notice of termination of operation of the real estate trading floor, the provincial-level state management agency for real estate business shall notify in writing the Ministry of Construction.
Before the termination date, the real estate trading floor must pay all outstanding taxes, settle other debts, complete the procedures for terminating labor contracts with employees of the real estate trading floor, and fulfill the service contracts signed with customers. If it is unable to fulfill the service contracts, an agreement must be reached with the customers regarding the implementation of such service contracts.
Temporary Suspension of Operations of Real Estate Trading Floors
According to the Decree, the provincial-level state management agency for real estate business shall issue a decision to temporarily suspend the operation of the real estate trading floor if the floor fails to meet the operating conditions prescribed by law or voluntarily suspends its operation.
In case the real estate trading floor voluntarily suspends its operation, it must report in writing to the provincial-level state management agency for real estate business, the local tax and statistics agencies, and the place where the real estate trading floor has its head office about the temporary suspension and resumption of operation, no later than 10 working days before the date of temporary suspension or resumption of operation. The temporary suspension period shall not exceed two years.
Within 07 days from the date of the decision to temporarily suspend the operation of the real estate trading floor, the provincial-level state management agency for real estate business shall notify in writing the Ministry of Construction, the local tax agency, and the place of business registration about the temporary suspension of operation of the real estate trading floor.
The report on the temporary suspension of operation shall include the following main contents: Name of the real estate trading floor; Number, date, month, and year of granting the Operating License; Address of the head office; Duration of temporary suspension, including the starting and ending dates; Reasons for temporary suspension; Report on debt payment, settlement of service contracts with customers, and contracts signed with brokers and employees working at the real estate trading floor.
During the temporary suspension period, the real estate trading floor must pay all outstanding taxes, continue to pay other debts, and complete the implementation of contracts signed with brokers and employees, unless otherwise agreed.
For service contracts signed with customers but not yet completed, an agreement must be reached with the customers regarding the implementation of such service contracts.
This Decree takes effect from August 1, 2024.
