Scope of Real Estate Brokerage Activities under Current Regulations

The Scope of Real Estate Brokerage Activities under Current Regulations is crucial content that helps individuals and enterprises practicing brokerage to perform their duties within permissible limits and proactively prevent operational risks. Current regulations have established a strict framework to ensure transparency, professionalism, and stability for the real estate market. Based on this, Long Phan Consulting Company analyzes the specific scope, content, and significance of related regulations below.

Scope of entities involved in brokerage activities

Determining the legal status of the subject is the first step to delimit the scope of legal activities. According to Clause 1, Article 61 of the Law on Real Estate Business 2023, real estate brokerage services must be provided by a real estate service business enterprise and meet the following conditions:

• Established as an enterprise or cooperative.
• Must have operational regulations and material-technical facilities.
• Must have at least 01 person with a practice certificate.
• Information Disclosure: Before operating, the enterprise must send information about itself to the provincial state management agency for posting on the housing and real estate market information system.

Note: Individuals practicing brokerage must hold a certificate and practice within an enterprise (brokerage enterprise or trading floor enterprise).

Facilities Requirement: According to Article 18 of Decree 96/2024/ND-CP, the enterprise must have a stable trading address/headquarters for over 12 months and technical facilities (machinery, equipment) serving its operations.

Content of real estate brokerage activities

According to Article 62 of the Law on Real Estate Business 2023 (amended), the content of real estate brokerage includes 03 core operational groups:

1. Finding partners meeting the customer’s conditions to participate in negotiations and signing of contracts.
2. Authorized representation to perform tasks related to procedures for purchase, sale, transfer, lease, sublease, and lease-purchase of real estate.
3. Providing information and supporting parties in negotiating and signing contracts for purchase, sale, transfer, lease, sublease, and lease-purchase.

Note: While the scope covers various transaction types, the core remains the intermediary role—supporting the conclusion of contracts and/or authorized representation in procedures.

>>> See more: Sample a commercial brokerage contract: Instructions for drafting properly

Notes on the rights and obligations of real estate brokers

Regulations on rights and obligations play an important role in controlling the scope of activities and preventing negative behaviors.

Rights of real estate brokerage businesses and individuals practicing real estate brokerage

(Article 64, Law on Real Estate Business 2023) Enterprises and individuals have the right to:

• Perform real estate brokerage.
• Request relevant organizations/individuals to provide dossiers and information on real estate.
• Collect service fees from customers as agreed.
• Refuse to broker real estate that does not meet business conditions.
• Request compensation for damages caused by the fault of others.
• Individuals specifically: Have the right to enjoy remuneration and brokerage commissions.

Obligations of real estate brokerage businesses and individuals practicing real estate brokerage.

(Article 65, Law on Real Estate Business 2023) Enterprises must:

• Provide full and truthful dossiers/information and take responsibility for them.
• Organize annual training to improve knowledge for staff.
• Fulfill tax obligations.
• Compensate for damages caused by their fault.
• Perform reporting regimes and submit to inspection.

Individuals specifically: Must comply with the regulations of the enterprise/trading floor where they work and participate in annual training.

Distinguishing real estate brokers from other real estate intermediary services.

Confusion between brokerage and other services leads to liability risks.

• Brokerage vs. Advisory: Brokerage focuses on connecting and closing deals (Article 62). Real estate advisory has a broader scope (legal, financial, strategic) but does not necessarily involve closing the transaction.
• Brokerage vs. Valuation: Valuation is a specialized field requiring a separate price appraisal certificate and compliance with the Law on Prices 2023 (amended 2024). Brokerage price opinions do not have the legal validity of a valuation certificate.

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

Real estate brokerage consulting services at Long Phan Consulting

Long Phan Consulting Company provides services based on strict compliance and professional ethics. We commit to providing truthful information to help clients eliminate potential risks.

• Standardization: Work processes are standardized through strict service contracts.
• Comprehensive Support: Integration of support from legal experts to handle administrative procedures, taxes, and title transfers.
• Supervision: Acting as a supervisor of legal compliance for all parties.

Frequently Asked Questions

Below, Long Phan Consulting provides some frequently asked questions related to the scope of activities of real estate brokers. We invite interested clients to refer to them:

Can individuals operate as independent (freelance) brokers?

No. Individuals must have a practice certificate and must operate within a real estate exchange service enterprise or a real estate brokerage service enterprise. (Legal Basis: Clause 2, Article 61, Law on Real Estate Business 2023).

Must brokerage contracts be in writing?

Yes. Verbal agreements have no legal validity to protect the rights of parties in disputes. (Legal Basis: Clause 1 Article 44 and Article 45, Law on Real Estate Business 2023).

Can brokers hike prices to pocket the difference?

No. This is fraudulent behavior. Brokers are only entitled to the service fees (remuneration/commission) publicly agreed upon in the contract. (Legal Basis: Clause 2 Article 8 and Clause 1 Article 65, Law on Real Estate Business 2023).

Can brokers request legal documents from the client?

Yes. This is a fundamental right to ensure the property meets business conditions. Brokers can refuse service if the property lacks legal status. (Legal Basis: Point b, Point d, Clause 1, Article 64, Law on Real Estate Business 2023).

Can foreigners practice brokerage in Vietnam?

Yes, if they hold a practice certificate (via exam in Vietnamese or with a translator) and practice within a real estate service enterprise, similar to Vietnamese citizens. (Legal Basis: Article 61, Law on Real Estate Business 2023).

Conclusion

Understanding the Scope of Real Estate Brokerage Activities helps parties establish legal rights and obligations. To receive detailed advice on procedures and standard brokerage services, please contact Long Phan Consulting Company via Hotline 1900636389 for timely support.