Rights and Obligations of Real Estate Brokerage Service Companies

The Rights and Obligations of Real Estate Brokerage Service Companies help enterprises define their responsibilities, organize standard operations, and mitigate risks. Understanding these principles helps enterprises comply with market regulations and protect the legal rights of all parties. This article provides a specific analysis to assist Clients in effective application.

Conditions for operating a real estate brokerage firm.

To legally operate, a real estate brokerage service provider must meet the conditions under Clause 1, Article 61 of the Law on Real Estate Business 2023:

1. Establishment: Must be established as an enterprise or cooperative.
2. Regulations & Facilities: Must have operational regulations and material-technical facilities.
3. Personnel: Must have at least 01 people with a practice certificate.
4. 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.

Facility Requirements: 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.

>>> See more: Conditions for real estate brokerage service business from August 1, 2024

Rights of real estate brokerage firms

According to Article 64 of the Law on Real Estate Business 2023, companies have the following rights:

1. Conduct real estate brokerage.
2. Request relevant organizations/individuals to provide dossiers and information on real estate for transactions.
3. Collect service fees from customers as agreed.
4. Refuse to broker real estate that does not meet conditions for business.
5. Request compensation for damages caused by the fault of relevant organizations/individuals.
6. Other rights under the contract.

Obligations of real estate brokerage firms

According to Article 65 of the Law on Real Estate Business 2023 (amended), obligations include:

1. Provide full and truthful dossiers and information about the brokered real estate and take responsibility for such information.
2. Organize annual training to improve knowledge for brokerage staff.
3. Fulfill tax obligations to the State.
4. Compensate for damages caused by their own fault.
5. Perform reporting regimes and submit to inspection by competent state agencies.
6. Other obligations under the contract.

>>> See more at: Is Notarization Mandatory for Real Estate Brokerage Contracts?

Real estate brokerage firms have compliance obligations related to the disclosure and provision of market data.

In the digital era, disclosing data is mandatory to enhance market transparency. According to Point d, Clause 1, Article 61 of the Law on Real Estate Business 2023 (amended 2024), before operating, the brokerage enterprise must send information about itself to the Department of Construction of the province/city where it is established to be posted on the housing and real estate market information system.

Penalties for violations by real estate service companies.

Decree 16/2022/ND-CP stipulates penalties for common violations:

• Untruthful Information: Providing incomplete or untruthful information about real estate can be fined from 200,000,000 VND to 250,000,000 VND.
• Administrative/Reporting Violations: Failure to report, or contracts not made in writing/lacking main contents can be fined from 120,000,000 VND to 160,000,000 VND.
• Data Violations: Failure to provide data or falsifying data on the market information system can be fined from 60,000,000 VND to 80,000,000 VND.

Additional penalties: Suspension of operation and remedial measures.

Real estate brokerage consulting services at Long Phan Consulting

Long Phan Consulting Company provides comprehensive solutions for compliance and operation:

• Consulting: Advising on conditions and procedures for establishing a brokerage enterprise.
• Drafting: Drafting operational regulations, model brokerage contracts, and legal due diligence processes for projects.
• Regular Advisory: Updating on tax policies, reporting regimes, and administrative penalty regulations to prevent risks.

Frequently Asked Questions

Below, Long Phan Consulting provides some frequently asked questions regarding the rights and obligations of real estate brokerage companies. We invite interested clients to refer to this information:

Can a broker receive a deposit on behalf of the owner?

In principle, No. However, if the broker is legally authorized by the property owner (via a notarized authorization document) to receive the deposit, they may do so within the scope of authorized representation. (Legal Basis: Clause 2, Article 62, Law on Real Estate Business 2023).

Can a broker be both the buyer and the broker in the same transaction?

No. The law prohibits a brokerage entity from simultaneously being a broker and a party to the contract in the same transaction, as this creates a conflict of interest. (Legal Basis: Point d, Clause 1, Article 59, Decree 16/2022/ND-CP).

Must brokerage contracts be in writing?

Yes. Real estate service contracts (including brokerage) must be made in writing. Verbal agreements are invalid and subject to penalties. (Legal Basis: Point b, Clause 2, Article 59, Decree 16/2022/ND-CP).

Can an individual with a certificate open a home office?

No, unless they establish a real estate service enterprise according to the Law on Enterprises. Independent practice outside of an enterprise or trading floor is prohibited. (Legal Basis: Clause 1, Article 61, Law on Real Estate Business 2023).

Conclusion

Strict compliance with Rights and Obligations is vital for sustainable development. To avoid heavy penalties and build a reputation, please contact Long Phan Consulting Company via Hotline 1900636389 for timely and professional legal support.