A professional license is required.
Accordingly, organizations and individuals engaged in real estate brokerage services must establish a real estate brokerage business in accordance with regulations and must meet a series of conditions. In addition, they must have regulations governing real estate brokerage services; they must have physical and technical facilities that meet the operational requirements as stipulated by the Government ; and they must have at least one individual holding a real estate brokerage certificate.
For businesses, before commencing real estate brokerage services, they must submit information about their business to the provincial-level state management agency for real estate business where the business is established, so that it can be published on the housing and real estate market information system as prescribed by this law.
All real estate brokers must have a professional license.
For individuals practicing real estate brokerage, the law also stipulates that they must possess a real estate brokerage license; they must practice within a real estate exchange service business or a real estate brokerage service business. Brokers seek partners who meet the client's conditions to participate in negotiations and contract signing. Real estate brokers act as authorized representatives to carry out tasks related to the procedures for buying, selling, transferring, leasing, subleasing, and lease-purchasing real estate. Real estate brokers provide information and support to the parties in negotiating and signing contracts for buying, selling, transferring, leasing, subleasing, and lease-purchasing real estate.
No more room for manipulation.
According to statistics from the Vietnam Association of Real Estate Brokers (VARS), there are currently about 200,000 people working as real estate brokers nationwide. However, only 40,000 of them hold real estate brokerage certificates.
According to Mr. Pham Lam, Vice Chairman of VARS, at the peak of the real estate market, there were up to 300,000 brokers operating nationwide, with Ho Chi Minh City accounting for one-third of them. However, today only about one-fifth of these brokers remain active, and their operations are unstable.
"In reality, the number of brokers is even higher because anyone can become a real estate broker. Statistics show that, on average, both the primary and secondary markets have over 100,000 transactions annually. In some localities, there are several thousand transactions a month, and brokers play a crucial role in facilitating these real estate transactions. In recent years, this force has undergone significant changes and progress. Many companies have built a team of brokers with expertise, skills, and professional ethics," Mr. Pham Lam assessed.
A leader of Nam Long Investment Corporation also stated that brokerage organizations in the market are clearly divided: on one side, there are professional, well-trained, specialized, and responsible organizations, and on the other side, there are brokerage firms or platforms that are formed too easily, leading to many negative consequences. Previously, a brokerage employee could establish a business and declare themselves CEO after only 7 days. These businesses provide a workforce of poor quality; although few in number, they significantly impact both investors and customers. Due to the scale of the mine, these businesses do not care about protecting the investor's brand or how to provide future customer service; they only focus on completing transactions and collecting money, neglecting their responsibilities to investors and customers.
The real estate market will operate more transparently.
While acknowledging the significant role of real estate brokers in the market, Nguyen Van Dinh, Vice Chairman of the Vietnam Real Estate Association, admitted that land prices in some areas have been fluctuating wildly, with prices skyrocketing, partly due to speculation and unprofessional brokers. Even brokers from professional companies have deliberately assisted in price manipulation, creating benefits that do not contribute to the economic development of the localities. It can be said that the real estate market in the recent period has been manipulated by many speculators and brokers.
The occurrence of unscrupulous real estate brokers and market manipulation is partly due to the lack of assessment and criteria for determining the conditions for practicing as a broker. While a legal framework exists, the law has been left unregulated for a considerable period, while the number of brokers has increased rapidly, leading to many negative consequences.
The Ministry of Construction previously acknowledged that, in addition to brokers at professional real estate exchanges, there are many freelance brokers operating without real estate brokerage certificates. A segment of this real estate brokerage workforce lacks expertise, has limited legal knowledge, lacks professionalism, and has poor business ethics, leading to unscrupulous practices, irresponsibility, and losses for clients. Furthermore, there are instances of real estate exchanges colluding to hoard properties, manipulate prices, create artificial price surges, and profit from price differences, causing market disruption.
Therefore, this new Real Estate Business Law, with its detailed and clear regulations, is expected to help make the real estate market more transparent and eliminate unscrupulous real estate brokers.
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