Conditions for real estate brokerage service business from August 1, 2024

Real estate brokerage service business is opening up new development opportunities from August 1, 2024. The Real Estate Business Law 2023 has specific regulations, creating conditions for businesses and individuals to conduct business activities. The following article will analyze in detail the content, conditions, rights and obligations of organizations and individuals providing real estate brokerage service.

Business content of real estate brokerage service

Real estate brokerage is a job as an intermediary for parties in buying, selling, transferring, leasing, subleasing, and leasing real estate.

Accordingly, Article 62 of the Law on Real Estate Business 2023 defines three main contents of real estate brokerage:

• Find partners that meet customers’ conditions to participate in negotiations and sign contracts.
• Authorized representative to perform work related to procedures for buying, selling, transferring, leasing, subleasing, and leasing real estate.
• Providing information and support for parties in negotiating and signing contracts for purchase, sale, transfer, lease, sublease, and lease purchase of real estate.

New and most standard real estate brokerage service business conditions

From August 1, 2024, conditions for the real estate brokerage service will change. Article 61 of the Law on Real Estate Business 2023 and Article 18 of Decree 96/2024/ND-CP clearly stipulate new requirements that organizations and individuals providing the real estate brokerage service need to meet the following conditions:

• Organizations and individuals providing the real estate brokerage service must establish real estate service businesses according to the provisions of Clause 5, Article 9 of the Law on Real Estate Business 2023;
• There must be regulations on the real estate brokerage service;
• Must have facilities, materials and techniques that meet operational requirements
• Have at least 01 individuals with a real estate brokerage certificate.
• Before operating, an enterprise must send information about the enterprise to the state management agency on real estate business at the provincial level where the real estate brokerage service enterprise is established. This information will be posted on the housing and real estate market information system.

Rights and obligations of businesses and individuals providing real estate brokerage service

Rights

Article 64 of the Law on Real Estate Business 2023 regulates the right of organizations and individuals to conduct real estate brokerage service as follows:

• Carry out real estate brokerage according to Law on Real Estate Business  2023;
• Request relevant organizations and individuals to provide real estate records and information for transactions;
• Collect service fees from customers as agreed by the parties;
• Refuse real estate brokerage that is not qualified to do business;
• Request relevant organizations and individuals to compensate for damages caused by their errors;
• Other rights under contract.

Obligation

Article 65 of the Law on Real Estate Business 2023 stipulates the obligations of brokerage organizations and individuals providing real estate brokerage service including the following main obligations:

• Provide complete and honest records and information about the real estate they broker and take responsibility for the records and information they provide;
• Organize training and fostering to improve real estate brokerage practice knowledge for real estate brokers working in the enterprise every year;
• Fulfill tax obligations to the State;
• Compensate for damages caused by your fault;
• Implement the reporting regime according to the provisions of law and submit to examination and inspection by competent state agencies;
• Other obligations under the contract.

Prohibited acts in real estate brokerage service business

Article 8 of the Law on Real Estate Business 2023 stipulates prohibited acts when providing real estate brokerage service. Specifically, there are the following behaviors:

• Real estate business is not eligible.
• Forging documents, intentionally falsifying real estate information.
• Do not disclose business real estate information.
• Fraud and deception in real estate business.
• Collecting money improperly when selling, leasing and purchasing real estate to be formed in the future.
• Failure to perform or incomplete performance of financial obligations.
• Issuing and using real estate brokerage practice certificates against regulations.
• Collecting, managing, and using fees and charges against the law.

Business consulting services and real estate brokerage service

Real estate brokerage business consulting services will support organizations and individuals to ensure business conditions and operations in the real estate brokerage field. With his experience, Long Phan will effectively advise and support customers on real estate brokerage service. Long Phan’s services include:

• Consulting on real estate brokerage business conditions
• Consulting and supporting the preparation of real estate brokerage business registration documents
• Instructions on procedures for registering real estate brokerage service.
• Rights and obligations of organizations and individuals doing real estate brokerage business.
• Consulting, reviewing, drafting real estate brokerage service contracts
• Consulting on other issues related to real estate brokerage service

Real estate brokerage service business from August 1, 2024 needs to comply with the new regulations of the  Law on Real Estate Business  2023. For detailed advice and support, please contact Long Phan via hotline 1900.63.63.89. Long Phan is ready to support you in complying with regulations and effectively developing your business in the field of real estate brokerage.