What Benefits are Real Estate Brokers Entitled To?

The question “What benefits are real estate brokers entitled to?” helps individuals and enterprises determine their legal rights, thereby building appropriate cooperation plans and remuneration agreements. Understanding the income formation and distribution mechanism ensures transparency and minimizes disputes. Long Phan Consulting Company analyzes specific benefits entitled to brokers under current regulations below.

Benefits for individuals practicing as real estate brokers.

The Law on Real Estate Business 2023 requires individual brokers to practice within an enterprise organization rather than practicing freely. Based on Article 63 of the Law on Real Estate Business 2023, benefits include remuneration and commissions:

1. Source: Individuals receive remuneration and commissions from the real estate exchange service enterprise or brokerage service enterprise.
2. Agreement: The level of remuneration/commission is agreed upon between the individual and the enterprise.

• Note: The remuneration level does not depend on the price of the brokered transaction.

The principle is to agree on the level of remuneration or commission with the business.

As explained, according to Clause 2, Article 63 of the 2023 Law on Real Estate Business, the real estate brokerage fee does not depend on the price of the brokered transaction. This regulation aims to prevent brokers from intentionally inflating real estate prices to earn higher profits.

The level of fees and commissions is entirely determined by mutual agreement between the individual broker and the business. This agreement must be documented in writing, usually in an employment contract or collaboration agreement, to serve as a legal basis for resolving disputes should they arise.

Other income derived from employment or cooperative relationships.

According to Clause 2, Article 63, separating remuneration from the transaction price prevents brokers from inflating prices for personal gain. Agreements must be recorded in writing (labor contracts or collaborator contracts) to serve as a legal basis for dispute resolution.

Other Income: Besides statutory remuneration/commissions, brokers may receive other income based on labor relations, such as:

• Base salary.
• Sales bonuses, KPI bonuses, “hot” bonuses.
• Allowances (marketing support, customer viewing costs, etc.).

>>> See more: Procedures for reissuing standard real estate brokerage practice certificates

Benefits for businesses providing real estate brokerage services.

Brokerage enterprises are the entities directly signing contracts with customers. Their economic benefits include:

Brokerage fees are paid by the client as per the brokerage service contract.

Based on Point c, Clause 1, Article 64 of the Law on Real Estate Business 2023, enterprises have the right to collect service fees from customers as agreed. This is the main revenue source, covering management, marketing, and personnel costs.

Income from related real estate services

Enterprises can increase profits by providing other services if eligible, such as:

• Real estate exchange services (listing fees, verification fees).
• Real estate consulting.
• Real estate management.

Note: Enterprises must ensure financial independence, transparent revenue sources, and issue full invoices/documents according to tax laws. Collecting fees not prescribed by law is prohibited.

Long Phan Consulting’s recommendation regarding clearly defined benefit agreements.

Long Phan Consulting Company recommends the following to minimize disputes regarding fees and commissions:

1. Clear Definition: Contracts must clearly distinguish between “Service Fees” (paid by customers to the company), “Remuneration” (salary/fixed fee paid to staff), and “Commission” (success bonus).
2. Conditions for Payment: Contracts should specify conditions for entitlement and payment timing (e.g., 100% upon deposit or notarization? What if the deposit is forfeited?).
3. Tax & Invoice Compliance: Brokerage enterprises must issue VAT invoices for service fees. For commissions paid to individuals, Personal Income Tax (PIT) must be deducted before payment.

>>> See more: Are real estate broker remunerations required to be transferred?

Real estate brokerage consulting services at Long Phan Consulting Company

Long Phan Consulting Company offers comprehensive solutions for establishing and operating brokerage businesses:

• Establishment Consulting: Assisting in meeting conditions for capital, facilities, and certified personnel; filing operation notifications.
• Contract Drafting: Drafting and reviewing model contracts (service agreements, labor contracts) to protect financial interests and define remuneration clearly.
• Dispute Resolution: Representing clients in negotiations regarding fee disputes.

Frequently Asked Questions

Below, Long Phan Consulting Company provides some frequently asked questions regarding the income earned by real estate brokers. We invite interested clients to refer to this information:

Is it legal for customers to pay commissions directly to individual brokers?

No. Customers must pay service fees to the brokerage enterprise. The enterprise then pays remuneration/commissions to the individual broker. Direct payment to individuals violates new legal procedures. (Legal Basis: Clause 1, Article 63, Law on Real Estate Business 2023).

Can brokers pocket the price difference if selling higher than the owner’s price?

No. The law prohibits brokers from arbitrarily raising prices to profit from the difference. Brokers are only entitled to the agreed remuneration/commission. (Legal Basis: Clause 2, Article 63, Law on Real Estate Business 2023).

What is the maximum commission allowed?

There is no ceiling or floor limit. The commission level is based entirely on voluntary agreement, following market supply and demand. (Legal Basis: Clause 2, Article 63, Law on Real Estate Business 2023).

Can individuals without certificates receive commissions?

No. To legally practice and receive benefits, individuals must hold a practice certificate and operate within an enterprise. Independent practice without a certificate is illegal, and such income is not protected. (Legal Basis: Clause 2, Article 61, Law on Real Estate Business 2023).

Conclusion

Clearly defining What Benefits Real Estate Brokers Are Entitled To ensures sustainable cooperation. Transparency in remuneration mechanisms ensures compliance and professionalism. For detailed advice on contracts and compensation regulations, please contact Long Phan Consulting Company via Hotline 1900636389 for timely support.