To ensure the real estate market operates safely and transparently, there needs to be a legal framework that clearly defines the roles and responsibilities of real estate brokers in providing consulting and information disclosure.
This also serves to protect the interests of practitioners and encourage brokers to engage in honest practices. In addition to a business license, brokers need experience, insights, and continuous updates on new knowledge to keep up with the increasingly strict requirements of the market.
In response to this situation, the 2023 Real Estate Business Law (amended) has been passed and will come into effect on August 1, 2024. This updated law introduces several new provisions aimed at tightening regulations related to real estate brokerage activities.
From August 1, real estate brokers will no longer be allowed to practice independently. Photo: Hồng Khanh |
Specifically, Article 61 of the 2023 Real Estate Business Law stipulates that individuals engaged in real estate brokerage must possess a practice certificate and must operate within a real estate trading floor enterprise or a real estate brokerage service enterprise.
This means that individuals will no longer be permitted to work as freelance real estate brokers, as currently allowed under Clause 2, Article 62 of the 2014 Real Estate Business Law.
Additionally, Article 61 of the 2023 Real Estate Business Law stipulates that individuals practicing real estate brokerage shall receive remuneration and commissions from the real estate trading floor or real estate brokerage service enterprise.
Article 48 of the 2023 Real Estate Business Law requires project investors, real estate businesses, and real estate service enterprises to receive payments from customers through accounts opened at domestic credit institutions or branches of foreign banks legally operating in Vietnam.
This means that for brokers working in real estate companies, all brokerage fees and commissions will be transferred through banks.
Regarding the issuance of brokerage certificates, the Ministry of Construction has started organizing examinations and granting real estate brokerage practice certificates. The organization of these examinations will be directly assigned or authorized by the Ministry of Construction to certain units, including the Vietnam Real Estate Brokers Association.
According to experts, the new provisions of the 2023 Real Estate Business Law will eliminate many non-specialist brokers, creating a healthy and transparent real estate business environment, in line with the government’s direction. The stringent regulations on brokerage and trading floor activities serve as a natural filter, bringing fairness to the market, and ensuring that only skilled and experienced brokers remain in the industry.
According to statistics from the Vietnam Real Estate Brokers Association, at the peak of the real estate market, there were about 300,000 to 400,000 individuals practicing real estate brokerage. However, only about 40,000 of them hold real estate brokerage certificates and have undergone systematic professional training, receiving certificates from the Department of Construction.
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