Is It Possible to Practice Real Estate Brokerage as an Individual?

Is It Possible to Practice Real Estate Brokerage as an Individual, It is currently strictly governed by the Law on Real Estate Business 2023. New regulations have fundamentally changed the legal status and operational methods of brokers. This article analyzes the legality and practice conditions under current regulations in detail.

Individuals are not permitted to practice real estate brokerage as a sole proprietorship, as stipulated by regulations.

The Law on Real Estate Business 2023 has established a new legal framework, completely eliminating freelance brokerage.

• Mandatory Affiliation: According to Clause 2, Article 61, individuals practicing real estate brokerage must practice within a real estate exchange service enterprise or a real estate brokerage service enterprise.
• Corporate Requirement: Clause 5, Article 9 stipulates that organizations/individuals providing real estate services (including brokerage) must establish an enterprise or cooperative.

Implication: Independent practice without affiliation to a real estate service organization is currently illegal. Individuals wishing to continue operating must sign labor contracts or collaborator contracts with exchanges or brokerage companies. This enhances state management and market transparency.

Specific rights of individuals practicing as real estate brokers.

Upon meeting practice conditions, brokers are granted rights under Article 64 of the Law on Real Estate Business 2023:

1. Perform real estate brokerage according to the law.
2. Request relevant parties to provide dossiers and information on the transaction property.
3. Refuse to broker properties ineligible for business.
4. Request compensation for damages caused by others’ faults.
5. Receive remuneration and commissions from the brokerage/exchange enterprise they work for.

Legal regulations on the revocation of real estate brokerage licenses.

According to Article 33 of Decree 96/2024/ND-CP, a certificate will be revoked in the following cases:

1. Loss of civil act capacity.
2. Dishonest declaration in the application dossier.
3. Erasing or altering the certificate.
4. Lending or renting the certificate to others.
5. Violating Article 8 of the Law on Real Estate Business 2023 (Prohibited Acts), such as:
   • Brokering ineligible properties.
   • Forging documents or falsifying information.
   • Failing to disclose information.
   • Fraud or deception.
   • Illegal collection/use of funds.
   • Tax evasion.

>>> See more at: How to Verify a Real Estate Brokerage Firm

Legal consulting services for real estate brokerage practice in Long Phan

Long Phan Consulting Company provides comprehensive legal solutions for individuals and enterprises:

1. Certificate Advisory: Reviewing eligibility for the exam; advising on mandatory legal/professional knowledge; guiding re-issuance/renewal procedures.
2. Establishment Consulting: Advising on establishing brokerage enterprises or trading floors under Article 9 of the Law on Real Estate Business 2023; drafting operational regulations and internal processes.
3. Compliance & Dispute Resolution: Advising on tax obligations and reporting regimes; representing clients in disputes regarding commissions or service fees.

Frequently Asked Questions

Below are some frequently asked questions in the field of securities brokerage; please refer to them:

Are freelance brokers subject to administrative penalties?

Yes. Independent practice without establishing an enterprise or belonging to an organization is prohibited and subject to penalties. (Legal Basis: Clause 1 Article 8 and Clause 2 Article 61, Law on Real Estate Business 2023).

Can brokers receive cash commissions directly from clients?

No. Brokers receive remuneration/commissions from their enterprise. All payments must be transferred via bank accounts to ensure transparency and tax compliance. (Legal Basis: Clause 2 Article 48 and Clause 1 Article 63, Law on Real Estate Business 2023).

What is the educational requirement for the exam?

Candidates must have graduated from high school (or equivalent) or higher. (Legal Basis: Clause 1, Article 70, Law on Real Estate Business 2023).

Are certificates issued before Jan 1, 2025 valid?

Yes. They remain valid until the expiration date stated on the certificate. Afterward, renewal or re-examination under new regulations is required. (Legal Basis: Clause 12, Article 83, Law on Real Estate Business 2023).

Do individuals selling their own property need a certificate?

No. Individuals selling/leasing their own legal property not for business purposes do not need to establish an enterprise or hold a certificate, but must fulfill tax obligations. (Legal Basis: Clause 4, Article 9, Law on Real Estate Business 2023).

Conclusion

Practicing real estate brokerage requires strict adherence to certificate and organizational requirements under the Law on Real Estate Business 2023. Meeting these standards avoids penalties and enhances professional reputation. For specialized support, please contact Long Phan Consulting Company via Hotline 1900636389.