How is a Social Housing Brokerage Contract Different from a Commercial Housing One?

“How is a social housing brokerage contract different from a commercial housing one?” is an issue of concern for many people in the context of increasing demand for buying and lease-purchasing housing. In reality, because social housing is subject to strict legal regulations regarding subjects, conditions, and prices, brokerage contracts for this type of housing have distinct differences compared to commercial housing. The following article by Long Phan Consulting Company will analyze and clarify the basic differences to help citizens and businesses understand and apply legal regulations correctly.

What are the differences between social housing and commercial housing?

Social housing and commercial housing are two types of real estate with completely different legal natures in the Vietnamese market.

• Social housing is supported by the State with construction funds to solve social security needs for low-income subjects.
• Commercial housing is invested by real estate enterprises for profit according to the market supply and demand mechanism.

The biggest difference lies in the selling price and purchase conditions. Social housing has significantly lower prices due to exemption from land use fees and preferential VAT of 5% (Point n Clause 2 Article 9 Law on Value Added Tax 2024). However, only subjects entitled to social housing support policies prescribed in Article 76 of the Housing Law 2023 have the right to access it. These subjects include:

1. People with meritorious services to the revolution.
2. Poor and near-poor households in rural areas.
3. Poor and near-poor households in rural areas frequently affected by natural disasters.
4. Poor and near-poor households in urban areas.
5. Low-income people in urban areas.
6. Workers and laborers in enterprises/cooperatives inside and outside industrial parks.
7. Officers, professional soldiers, and non-commissioned officers in the people’s armed forces.
8. Cadres, civil servants, and public employees.
9. Subjects who have returned official residence housing.
10. Households/individuals whose land is recovered/cleared without compensation in housing/land.
11. Students of universities/colleges/vocational schools.
12. Enterprises/cooperatives in industrial parks.
13. People with 02 or more children.

Commercial housing, according to Clause 4 Article 2 of the Housing Law 2023, is invested to sell/lease according to the market mechanism, allowing free transactions for all subjects, including foreigners.

Architectural characteristics: Social housing is usually limited to a floor area of 25m2 to 70m2. Commercial housing is more diverse and has no maximum area limit.

>>> See more: Income Conditions for Beneficiaries of Social Housing Policies

Things to note when buying social housing through a real estate agent.

Transactions of social housing through intermediaries carry many risks of fraud. Currently, many brokerage floors impersonate investors to collect illegal deposits for projects ineligible for sale. Clients need to be alert to promises of “diplomatic slots” or commitments to bypass the lucky draw.

State management agencies warn against fake websites and consulting fees up to hundreds of millions of VND. Buying and selling social housing must be done directly with the investor and comply with the strict dossier review sequence of the Department of Construction.

Clients should check the list of eligible projects on the local Department of Construction’s portal. Any deposit transaction through a broker when the project has not announced the acceptance of the foundation is a violation of the law.

What are the differences between brokerage contracts for social housing and commercial housing?

A social housing brokerage contract is strictly regulated by social security institutions and the Law on Real Estate Business.

• Content: For social housing, the brokerage contract cannot include the right to decide purchase slots or intervene in dossier review results. It must follow the conditions in Article 78 of the Housing Law 2023. Brokerage fee clauses are often limited or not allowed to be collected directly from buyers under support policies.
• Nature: Commercial housing brokerage contracts are highly voluntary. Commission fees are agreed upon based on market value (Clause 2 Article 63 Law on Real Estate Business 2023). Brokers can freely find customers without being limited by beneficiary standards.
• Legal Consequences: Illegal social housing brokerage contracts can lead to housing revocation and administrative penalties. According to Clause 8 Article 88 of the Housing Law 2023, tenants/lease-purchasers can only use the house for residence; if there is no longer a need, the contract terminates, and the house must be returned. Brokerage contracts promising to transfer social housing are invalid transactions.

>>> See more: Exemption from Land Use Levy when Selling Social Housing

Long Phan Consulting Company provides consulting services for social housing brokerage.

Long Phan Consulting Company provides comprehensive legal solutions for clients wishing to transact real estate. Our team of professionals appraises project legal dossiers and checks the capacity of brokerage units. We help clients identify risks in contracts and ensure the buying and selling process complies with the law. We structure our support into the following key areas:

• Assessing the legal documentation of social housing projects, including checking the investment approval decision, land legal documents, and eligibility for transaction.
• We provide advice on eligibility requirements for social housing policies and guide clients in completing purchase and lease-purchase applications according to the correct forms and legal requirements.
• Verify the legal capacity and legitimacy of brokerage firms and individuals; identify and warn of risks arising from illegal brokerage activities or exploitation of policies.
• Review, analyze, and advise on the content of deposit contracts, promissory notes for purchase and sale, and brokerage contracts to protect the legitimate rights of clients.
• Represent or assist clients in working with relevant government agencies to verify project information (if applicable).

Frequently Asked Questions

Below are some frequently asked questions about social housing brokerage contracts; please refer to them:

What are the typical brokerage fees for commercial residential properties?

Brokerage commissions for commercial housing are not legally fixed but are freely agreed upon by the parties in the brokerage contract, typically ranging from 1% to 3% of the transaction value.

(CSPL: Article 63 of the 2023 Law on Real Estate Business.)

Can foreigners buy social housing in Vietnam?

Current law stipulates that social housing is only available to low-income Vietnamese citizens; foreigners are not eligible for this support policy.

(CSPL: Article 76 of the Housing Law 2023.)

After what period of time are buyers of social housing allowed to resell it to someone else?

Buyers of social housing are only entitled to resell the house after at least 5 years from the time they have fully paid for the house according to the contract signed with the developer.

(CSPL: Article 89 of the Housing Law 2023.)

What documents are required to prove eligibility for low-income housing?

Customers need to prepare a Certificate of Eligibility and Current Housing Status along with a Certificate of Income (not subject to regular personal income tax).

(CSPL: Article 8 of Circular 05/2024/TT-BXD, supplemented by Point c, Clause 2, Article 1 of Circular 32/2025/TT-BXD.)

>>> See more: Current Conditions for Enjoying Social Housing Support Policies

Conclusion

Distinguishing clearly between social housing and commercial housing brokerage contracts helps clients protect assets effectively. To avoid serious legal mistakes, clients should seek support from experienced experts.

Long Phan Consulting Company is always ready to accompany clients in every real estate transaction. Contact Hotline 1900636389 immediately for in-depth legal advice.