Types of Real Estate Intermediary Services Are Recognized by Law

Types of Real Estate Intermediary Services Are Recognized by Law is real estate intermediary services recognized by law are important content helping market participants correctly identify the scope of legal activities and rights/obligations arising in transactions. Clearly identifying each type of intermediary service not only contributes to ensuring transparency and legal safety but also limits the risk of disputes during buying, selling, transferring, and leasing real estate. The following article by Long Phan Consulting Company will specifically analyze the types of real estate intermediary services according to current legal regulations, clarifying operating conditions and necessary notes.

Types of real estate service businesses

According to the regulations in Clause 2, Article 3 of the Law on Real Estate Business 2023, real estate service business includes the following services:

1. Real Estate Trading Floor.
2. Real Estate Brokerage.
3. Real Estate Consultancy.
4. Real Estate Management.

These services play the role of direct support links for the transfer, lease, and operation of commercial real estate. Apart from these services, current laws do not recognize other forms of intermediaries participating directly in the process of establishing and executing real estate transactions if they do not fall into one of the types prescribed in Clause 2, Article 3 of the Law on Real Estate Business 2023.

Therefore, any intermediary activity in the real estate sector wishing to be considered legal must be organized and operated under one of the above service types and fully meet business conditions according to specialized laws.

>>> See more: Assigning Electronic Identification Codes to Real Estate

Conditions for organizations and individuals to conduct real estate services

According to Article 9 of the Law on Real Estate Business 2023, the condition is that organizations and individuals must establish an enterprise according to the Law on Enterprises or a cooperative/union of cooperatives according to the Law on Cooperatives, except for two cases:

1. Individuals doing small-scale real estate business (must declare tax).
2. Organizations/individuals selling/leasing housing/construction works not for business purposes or below the small-scale level (must declare tax; individuals selling/leasing-purchasing must notarize/authenticate contracts).

Additionally, real estate enterprises must meet the following conditions:

• Not legally banned/suspended from real estate business operations.
• Ensure credit debt and corporate bond debt ratios over equity.
• For project-based business: Equity must be ≥20% of total investment (projects <20 ha) or ≥15% (projects ≥20 ha); ensure capital mobilization capacity; allocate sufficient equity if implementing multiple projects.

>>> See more: Overseas Vietnamese establish real estate intermediary enterprises

Types of real estate service business contracts

Based on Clause 2, Article 44 of the Law on Real Estate Business 2023, types of contracts include:

1. Real Estate Trading Floor Service Contract.
2. Real Estate Brokerage Service Contract.
3. Real Estate Consultancy Service Contract.
4. Real Estate Management Service Contract.

The specific regulation of these contracts shows that each type of intermediary service must be established by an independent contract, corresponding to the content and scope of service. This is an important legal basis for determining rights, obligations, service conditions, remuneration, liability for damages, and dispute resolution mechanisms.

Real estate business consulting services at Long Phan Consulting Company

Long Phan Consulting Company provides comprehensive solutions for businesses operating in the real estate service sector. Our team of experts focuses on risk analysis, compliance process development, and legal rights protection for clients. We support optimizing business operation structures to ensure safety in a volatile business environment. We structure our support into the following key areas:

• Providing advice on the requirements for establishing a business, cooperative, or union of cooperatives engaged in real estate services.
• We provide advice on the capital, personnel, and infrastructure requirements for obtaining a license to operate a real estate trading floor.
• Assisting key personnel in preparing applications for real estate brokerage licenses.
• Drafting contracts for real estate brokerage, consulting, management, and exchange services in accordance with legal regulations.
• Review and revise contracts to ensure the protection of clients’ rights and minimize legal risks.
• Ensure that the contract’s content complies with legal regulations.
• We represent our clients in the procedures for registering a real estate business.

Frequently Asked Questions About Types of Real Estate Intermediary Services

Below are some frequently asked questions about Types of Real Estate Intermediary Services; please refer to them:

Are individuals allowed to operate as independent (freelance) real estate brokers?

No. According to the latest regulations, individuals practicing real estate brokerage must have a professional license and are required to operate within a real estate exchange or brokerage service business. Current law no longer allows individuals to practice brokerage independently to ensure proper management and transparency.

(Legal basis: Clause 2, Article 61 of the 2023 Law on Real Estate Business.)

What is the fundamental difference between real estate consulting services and real estate brokerage services?

Brokerage services focus on acting as intermediaries, finding partners and assisting parties in completing transactions (signing sales contracts, transfers). Meanwhile, consulting services provide expert assistance in legal, financial, planning, and investment strategy matters. Brokers earn commissions/fees upon successful transactions or as agreed upon, while consultants typically receive service fees based on their expertise and the results of their advice.

(Legal basis: Clause 2, Article 3 of the 2023 Law on Real Estate Business.)

Are businesses providing real estate services required to have their service contracts notarized?

Not mandatory. A real estate service contract where at least one party is a real estate business can be notarized or certified at the request of the parties, but it is not a mandatory condition for the contract to be valid (unless the parties agree otherwise). However, notarization is recommended to ensure greater legal validity in terms of evidence.

(Legal basis: Clause 4, Article 44 of the 2023 Law on Real Estate Business.)

Are foreign organizations allowed to conduct real estate services business in Vietnam?

Yes. Foreign organizations are permitted to conduct real estate services in Vietnam, but they must establish a business or cooperative in accordance with Vietnamese law and meet the same conditions as domestic businesses. The scope of activities includes real estate trading, brokerage, consulting, and management.

(Legal basis: Clause 5, Article 9 and Article 10 of the 2023 Law on Real Estate Business.)

How do real estate brokerage fees and commissions differ?

Brokerage fees are the amount of money a business receives regardless of the transaction outcome (usually search and listing costs). Brokerage commissions are the amount of money a business receives when a transaction (buying, selling, transferring, or leasing) is successful. Both of these amounts must be specifically agreed upon in the real estate brokerage service contract.

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

>>> See more: What Content Must a Real Estate Brokerage Service Contract Include?

Conclusion

Compliance with regulations on types and conditions of real estate intermediary service business is a core factor for sustainable development. Entities need to master the latest legal framework to limit risks.

For in-depth advice on procedures and contracts, please contact Long Phan Consulting Company via Hotline 1900636389 for timely technical support.