'Forcing real estate trading through the floor is hindering business freedom'

On the afternoon of June 23, giving comments on the Law on Real Estate Business, delegate Cam Ha Chung, Head of the Ethnic Minorities Committee of Phu Tho province, expressed disagreement with the provisions in the draft law requiring mandatory transactions through real estate exchanges.

'Bắt mua bán bất động sản qua sàn là ngăn trở tự do kinh doanh' - Ảnh 1. — Delegate Cam Ha Chung (Phu Tho delegation) expressed disagreement with the regulations requiring real estate transactions through the floor.

Besides, Mr. Chung also disagreed with the regulation that allows transactions that do not necessarily require notarization or contract authentication and can use the exchange's confirmation to carry out subsequent transactions.

Mr. Chung commented that this regulation conflicts with the Constitution, Enterprise Law, and Investment Law.

Accordingly, the draft law on Real Estate Business requires businesses and people to transact through an intermediary unit (trading floor), which shows signs of hindering the right to freedom of business according to Article 33 of the 2013 Constitution; the right to business autonomy, freedom to seek markets and customers according to Article 7 of the Enterprise Law; as well as the right to self-determination and self-responsibility for business investment according to the Investment Law.

“A real estate trading floor is a normal enterprise, not a state management agency, not a public service provider authorized by the state, so forcing entities to use services from normal enterprises will create inequality and violate the principles of equality in business,” said Mr. Chung.

Regarding the operation of real estate trading floors, Mr. Chung commented that the draft law allows trading floors to check real estate documents to ensure they meet the transaction conditions. Thus, part of the work of the real estate trading floor will overlap with the work of a notary when assessing legality.

Besides, it does not guarantee objectivity, because as an intermediary broker selling to investors, the trading floor will find every way to sell as much as possible to investors.

Therefore, there is no basis to guarantee that they will guarantee the rights of buyers, especially products with incomplete legal documents but high discounts. Investors can also set up many floors, create virtual transactions, and push up the selling price.

From there, Mr. Chung proposed that all transactions involving at least one individual party must be notarized. At the same time, he proposed that the bill encourage but not require any real estate transaction to go through the floor.

Delegates from Phu Tho province also proposed to remove the regulation of confirmation from the trading floor as a basis for participating parties to conduct subsequent transactions.

Very strict regulations on brokerage

Holding up a sign to debate with many delegates about the mandatory regulation of buying and selling real estate through the floor, delegate Hoang Van Cuong ( Hanoi delegation) said that real estate is a very familiar commodity to everyone, but when put into transaction, it is a very special commodity.

'Bắt mua bán bất động sản qua sàn là ngăn trở tự do kinh doanh' - Ảnh 2. — National Assembly Delegate Hoang Van Cuong (Hanoi delegation)

"I would like to ask the delegates in this hall how many delegates buy and sell real estate or houses themselves without the help of a third party, acquaintance, or expert," Mr. Cuong said, and said that, although there are no regulations, in reality, when making transactions, people still seek out intermediaries and brokers, the problem is how to find a professional.

Mr. Cuong cited that in countries with complete markets, brokerage is a professional profession, with very strict regulations and great responsibility. When contracts go through this trading floor, the brokerage unit must take full responsibility for the contract.

"Therefore, buyers and sellers who have gone through the floor can rest assured that there is no risk, no running back and forth, the floor is very professional," Mr. Cuong stated, at the same time, he said that the trading floors are only allowed to receive brokerage fees, not any difference in buying and selling. No participation is allowed, the regulations are very strict.

Mr. Cuong said that professional real estate trading floors have better functions than current notary offices. Because notary offices can only check whether the contract is legal or not, whether the documents are complete, but cannot check other factors to ensure advice for buyers and sellers like the floor.

From there, Mr. Cuong proposed that the law must focus on very strict regulations on real estate brokerage, brokerage activities through the floor must be professional floors capable of assisting buyers and sellers, the extended arm of the State to grasp market information, avoiding the situation of chaos and fraud in the real estate market as recently.

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