Regulations on Information Disclosure before Real Estate Brokerage Operations

Regulations on Information Disclosure before Real Estate Brokerage Operations is a mandatory obligation stipulated in the Law on Real Estate Business 2023 to ensure market transparency. Strict compliance with this process helps enterprises avoid future legal risks. Long Phan Consulting Company analyzes this regulation in detail below.

Real estate brokerage firms must disclose information before commencing operations.

Current laws impose strict requirements on organizations participating in the real estate service market. Disclosing information before operating is a prerequisite for establishing legal operating status.

Based on Point d, Clause 1, Article 61 of the Law on Real Estate Business 2023, real estate brokerage service enterprises must send information about the enterprise to the provincial state management agency before commencing business operations.

• Implication: Even with an Enterprise Registration Certificate, brokerage activities are not considered fully compliant until the notification and disclosure step on the specialized management system is completed.
• Content: Name, headquarters address, legal representative, and information related to practice conditions.
• Purpose: To update data on the Housing and Real Estate Market Information System. This national database allows state agencies to control quality and customers to verify the reputation of service providers, eliminating “ghost” brokers.
• Consequence: Non-compliance may lead to administrative penalties or suspension of operations.

>>> See more at: Scope of Real Estate Brokerage Activities under Current Regulations

The competent authority publicly receives information from real estate brokerage firms.

According to Article 6 and Article 26 of Decree 144/2025/ND-CP, the Department of Construction (Sở Xây dựng) is the agency responsible for receiving information from brokerage enterprises.

• Role: The Department of Construction performs state management, reviews dossiers, and ensures enterprise information meets standards before posting.
• Process: Enterprises submit dossiers (legal documents, personnel practice certificates) via the one-stop-shop mechanism or online public service system.
• Supervision: The Department checks the truthfulness of the information. False or inaccurate disclosures are subject to correction requests or sanctions.

Legal regulations regarding the rights and obligations of real estate brokerage firms.

Besides the initial disclosure obligation, enterprises must adhere to strict operational regulations.

Rights (Article 64, Law on Real Estate Business 2023):

1. Perform real estate brokerage.
2. Request relevant parties to provide dossiers/information on transactions.
3. Collect service fees as agreed.
4. Refuse to broker properties ineligible for business.
5. Request compensation for damages caused by others.

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

1. Provide full and truthful information/dossiers and take responsibility for them.
2. Organize annual training to improve knowledge for brokerage staff.
3. Fulfill tax obligations.
4. Compensate for damages caused by their own fault.
5. Perform reporting regimes and submit to inspections.

Real estate brokerage consulting services at Long Phan Consulting

Long Phan Consulting Company provides comprehensive solutions to help brokerage enterprises organize their machinery and operate legally from establishment:

• Disclosure Support: Consulting and performing procedures to disclose information before operation; representing the enterprise to work with the Department of Construction.
• Establishment Advisory: Advising on conditions for establishing and operating brokerage enterprises (organizational structure, practice certificates, trading floor regulations).
• Contract & Compliance: Drafting/reviewing brokerage service contracts to protect fee/commission rights; advising on project legal appraisal processes.
• Risk Management: Assessing and forecasting legal risks based on current regulations.

Frequently Asked Questions

Below are some frequently asked questions regarding the disclosure of information by real estate brokerage businesses; please refer to them:

Must individual independent brokers establish an enterprise and disclose information? 

Yes. Current laws prohibit individuals from practicing independent brokerage. They must establish an enterprise or work for a real estate exchange/brokerage enterprise. Therefore, establishing an enterprise and disclosing information is mandatory. (Legal Basis: Clause 1, Article 61, Law on Real Estate Business 2023).

When exactly must the enterprise send information to the Department of Construction? 

Enterprises must complete sending information before officially conducting business activities (e.g., signing brokerage contracts, finding customers, collecting fees). Operating before disclosure is considered non-compliant. (Legal Basis: Point d, Clause 1, Article 61, Law on Real Estate Business 2023).

Can the enterprise collect service fees before the information is posted? 

No. The right to collect fees arises only when the enterprise performs legal brokerage. Not disclosing information means the conditions for operation are not fully met; thus, fee collection during this period carries the risk of violation and contract invalidity. (Legal Basis: Point c Clause 1 Article 64 and Point d Clause 1 Article 61, Law on Real Estate Business 2023).

Where can customers look up broker information? 

Customers can look up information on the Housing and Real Estate Market Information System. This is the official channel operated by the state management agency. (Legal Basis: Point d, Clause 1, Article 61, Law on Real Estate Business 2023).

Is annual staff training a condition for maintaining operations? 

Yes. Organizing annual training to improve professional knowledge for staff is a mandatory obligation. It is a criterion for state inspection of compliance. (Legal Basis: Point b, Clause 1, Article 65, Law on Real Estate Business 2023).

Conclusion

Compliance with the Regulations on Information Disclosure before Real Estate Brokerage Operations is a solid foundation for enterprises to affirm their reputation and avoid penalties. Long Phan Consulting Company is ready to assist clients in perfecting dossiers and operational processes. Please contact Hotline 1900636389 for timely legal support.