The Largest Province Cracks Down on Real Estate Brokers

11 August, 2025

Lâm Đồng Cracks Down on Illegal Real Estate Brokerage and Speculation

The Lâm Đồng Department of Construction has directed units to strengthen the management of the local real estate market.

Specifically, the Department of Construction assigns People’s Committees of communes, wards, special districts, and investors and brokerage floors participating in the local real estate market to promote many solutions to tighten management, ensure transparency, prevent risks and illegal profiteering acts in real estate investment and business activities.

Accordingly, the People’s Committees of communes, wards, and special districts were assigned to promote the propaganda of laws on investment, land, construction, and real estate business in various forms.

Coordinate with investors to announce the legal information of projects that are being implemented, projects that are not eligible for capital mobilization, and projects that are not eligible for sale of formed houses in the future. At the same time, warn people to be cautious of unhealthy buying and selling behaviors, misinformation, and avoid economic risks and losses when participating in transactions.

Disclose planning information that has been approved by competent authorities (such as land use planning, land use plans, urban and rural planning…) and the progress of infrastructure project implementation, housing, urban areas, residential areas… to make information transparent, prevent speculation and illegal profiteering.

Strengthen the management of construction order in the area, ensuring compliance with the approved planning and architecture; closely monitor the transfer of land use rights and strictly handle cases of illegal land subdivision and sale, not in accordance with the planning.

Lâm Đồng requires brokerage floors, organizations, and individuals to provide transparent information and be responsible for brokerage content.

Monitor urban and residential projects that have been licensed for investment and are being implemented to tighten the management of real estate business activities and handle violations of real estate brokerage and business activities when conditions are not yet guaranteed as prescribed by law.

Handle land violations in a timely manner, ensure security and order, especially in areas with planning information or projects about to be implemented. Proactively remove difficulties to speed up the progress of housing projects, increasing supply for the market.

For real estate project investors, the Department of Construction requires the implementation of projects in accordance with the law on land, investment, construction, and real estate business, and anti-money laundering.

Ensure financial capacity, do not mobilize capital illegally; selling houses only when they meet the conditions prescribed in the Housing Law and the 2023 Law on Real Estate Business.

Disclose project information in accordance with the provisions of Articles 6 and 14 of the 2023 Law on Real Estate Business. Do not authorize the signing of contracts for the purchase, transfer, and lease-purchase of real estate to joint venture partners and investment cooperation partners if it is not in accordance with the regulations.

Brokerage exchanges, organizations, and individuals must provide transparent information, be responsible for brokerage content, and fully implement their rights and obligations in accordance with the law.

Individuals practicing real estate brokerage must have a practicing certificate and are only allowed to practice through legal enterprises. Absolutely do not violate the prohibited acts in real estate business prescribed in Article 8 of the Law on Real Estate Business.

Previously, the People’s Committee of Lâm Đồng province said that there was a complicated situation of illegal real estate brokerage (“land hustlers”), especially in areas with planning information, preparing to implement infrastructure, tourism, and urban projects… leading to many negative consequences such as disrupting market information, creating “virtual fever”, pushing up land prices, disputes, violations of construction order, affecting the investment environment and local security and order.

Therefore, the Lâm Đồng Provincial Police were assigned to investigate and strictly handle acts of fraud and gathering to cause disturbances related to illegal real estate brokerage, especially on social networks. The Department of Construction regularly inspects real estate brokerage establishments, strictly handles violations of the law, and revokes business certificates.

To rectify the situation of self-proclaimed and unprofessional brokerage in Ho Chi Minh City, the Department of Construction is coordinating with localities to inspect enterprises, trading floors, and individuals practicing brokerage. Violations such as operating without a license, providing incorrect project information, and advertising contrary to legal provisions… will be strictly punished, even having their business licenses revoked.

At the same time, Ho Chi Minh City is speeding up the progress of building a database of real estate information allowed to be traded, ensuring that people and investors can look up official information about the legal status, progress, and investors of projects. This is to minimize risks for people when participating in transactions and contribute to the healthy development of the market.