Are real estate broker remunerations required to be transferred?

Real estate broker remunerations is the amount of money the broker receives from the customer after completing the transaction. However, after the Law on Real Estate Business 2023 takes effect, there is much information about whether wire transfer for these transactions will be mandatory or not. This article will answer related issues and provide useful information for parties involved in real estate transactions.

What is real estate broker remunerations?

Real estate broker remunerations is the amount of money a broker receives from a real estate trading floor service business or a real estate brokerage service business after completing the brokerage work. Real estate buying, selling, leasing, and transferring services.

This can be considered as compensation for the broker’s efforts in connecting buyers and sellers, supporting negotiations and completing real estate transfer procedures.

According to Article 63 of the Law on Real Estate Business 2023, brokerage remuneration is determined based on the agreement between the individual real estate broker and the real estate trading floor service business or service business business. real estate broker. The remuneration will not depend on the price of the real estate brokered transaction.

Real estate broker remunerations can be paid in many different forms:

• One-time payment: Full compensation is paid after the transaction is completed.
• Payment by stage: Remuneration is divided into parts and paid according to transaction progress.
• Partial payment in advance: Customers can pay part of the remuneration in advance when signing a brokerage contract.

The choice of payment method depends on the agreement between the parties and must comply with current legal regulations.

When paying real estate broker remunerations, is it required to transfer money?

Based on the content of Article 48 of the Law on Real Estate Business 2023, it is stipulated on payment in real estate business as follows:

“Project investors, real estate businesses, real estate service businesses receive payments under real estate business contracts, real estate service business contracts from customers through an account opened at a domestic credit institution or foreign bank branch legally operating in Vietnam.

Thus, from August 1, 2024, in cases of real estate brokerage through businesses or investment projects, real estate brokerage commissions are required to apply by bank transfer. Payment in real estate transactions and real estate projects is agreed upon by the parties in the contract and complies with the provisions of law.

Legal issues to keep in mind when paying real estate broker remunerations

Responsibilities of the parties in the transaction

In a real estate brokerage transaction, each party has its own responsibilities and obligations. According to Article 65 of the Law on Real Estate Business 2023, businesses providing real estate brokerage services and individuals practicing real estate brokerage are responsible for providing truthful information about real estate and supporting all parties. during the process of negotiating and signing contracts; Take responsibility for the records and information provided by you, and compensate for damages caused by your errors.

Customers are responsible for providing accurate information about their needs to buy, sell, or rent real estate and pay in full and on time the brokerage fee as agreed. Parties should note:

• Sign a clear and detailed brokerage contract.
• Clearly define remuneration levels and payment methods.
• Comply with commitments in the contract.
• Keep all payment documents.

Preventing disputes related to brokerage fees

Disputes over brokerage remuneration may arise when the parties do not agree on the remuneration level, payment time or quality of brokerage services. To prevent disputes related to brokerage remuneration payments, the parties can take some important measures as follows:

• First of all, it is necessary to develop a specific brokerage contract, clearly stating the terms of remuneration and brokerage commissions.
• For transfer payments, the contract needs to fully state the broker’s receiving account information. The parties can agree to divide the payment into several installments, corresponding to the progress of contract implementation.
• In addition, it is necessary to clearly stipulate the payment deadline and legal consequences if this obligation is violated.
• Making a money handover record or keeping transfer documents is also very important, as a basis for resolving disputes if any. Communicate information promptly when problems arise.

Tax obligations for income from real estate brokerage activities

Remuneration received in the form of brokerage commissions is income subject to personal income tax. Therefore, individuals doing real estate business need to declare and pay full personal income tax on remunerations and commissions received from real estate brokerage activities.

Based on the content at Point c, Clause 1, Article 3 of Decree 65/2013/ND-CP

It should be noted that:

• It is necessary to keep all invoices and documents related to income from real estate brokerage activities. This not only helps with accurate tax declaration but is also important evidence when there is a tax inspection or audit.
• Businesses need to closely monitor revenue and expenses related to real estate brokerage activities to accurately determine taxable income.
• If you have any problems during the tax declaration and payment process, you should consult a tax expert or contact the tax authority directly for specific instructions.
• Regularly update new tax regulations to ensure compliance with the law.
• Using accounting and tax management software can make tax tracking and declaration easier and more accurate.

Correctly fulfilling tax obligations not only helps avoid fines and arrears, but also contributes to building the reputation of the real estate broker. This is especially important in a competitive and increasingly transparent market like the real estate sector.

Real estate brokerage consulting services

Long Phan’s real estate brokerage consulting services provide information and professional support to the parties involved in the transaction. These services include legal advice, negotiation support and procedural guidance. The scope of services typically includes:

• Legal analysis of the transaction: Check the legality of real estate, verify ownership and related documents, evaluate potential legal risks
• Contract drafting and review: Prepare brokerage contracts, review real estate purchase or lease contracts, ensure fair contract terms and protect the rights of parties
• Support in negotiating broker remunerations: Advise on remuneration levels appropriate to the market, support negotiations between brokers and customers, and propose reasonable remuneration payment methods.
• Consulting on tax obligations: Instructions on declaring and paying income tax from brokerage activities, consulting on taxes related to real estate transactions,…
• Support for dispute resolution: Consulting on dispute resolution options, support in the negotiation and mediation process.

Payment of real estate broker remunerations must be transferred to ensure safety and transparency. By using professional consulting services, the parties involved in the transaction can safely focus on business operations and minimize potential legal risks. Please contact Long Phan via hotline 1900.63.63.89 for timely support on issues related to real estate brokerage.