Continuing the 6th Session, on the morning of October 31, the National Assembly discussed in the hall a number of contents with different opinions of the draft Law on Real Estate Business (amended).
Unprofessional real estate trading floors will "distort" the market
Regarding real estate transactions through trading floors, the draft Law has been revised to remove regulations on real estate transactions through trading floors in Chapter VII; adding Clause 7, Article 8 on the State's policy on real estate investment and business.
Accordingly, the State only "encourages organizations and individuals to conduct transactions of buying, selling, transferring, leasing, renting houses, construction works and land use rights through real estate trading floors".
Participating in the discussion in the hall, delegate Hoang Van Cuong (Hanoi delegation) emphasized the important meaning of real estate trading floors in the real estate market. According to the delegate, if the real estate trading floors are not professional, the market will be "distorted".
The delegate cited evidence that the implementation of the 2014 Law on Real Estate Business shows that current real estate trading floors are not capable of ensuring the legal safety of transactions. There have even been many cases where real estate trading floors have disrupted the market.
“Many exchanges have distorted the market. So why don’t we re-regulate the law so that exchanges don’t distort it anymore? In particular, in the 2014 law, we did not properly define the functions of exchanges, not just the brokerage function. We still let exchanges participate in both selling and buying,” said delegate Cuong.
“The floor should only stand in the middle, but now it is both buying and selling, which is called “one hand throwing, the other catching”. That is what is causing market turmoil,” the delegate added.
The Hanoi delegation proposed that this law should have stricter regulations on real estate trading floors in the direction that the floors only perform the intermediary function, being responsible for the information provided to buyers and the State. The floors are not allowed to participate in real estate trading, but are entitled to transaction confirmation fees and brokerage fees agreed upon by both parties.
Delegates agreed with the draft law when it does not require mandatory trading through the exchange. Those who have traded through the exchange can use the exchange confirmation paper instead, without having to be notarized.
Delegate Cuong emphasized that when the floor is given the right responsibility for its role of consulting customers, providing information, and acting as a broker, it will promote its role, contributing to the development and health of the real estate market.
“If we do not give them that role, and let them “toss and catch” as they do now, it will disrupt the market. I know that such a regulation will make brokers unhappy because there will no longer be a monopoly on confirmation because customers will choose through notaries or through brokers,” said delegate Cuong, adding that brokers will have to operate professionally and comply with the law, take legal responsibility, and will not have the right to “toss and catch” to make a profit as before.
Does a trading floor manager need a broker license?
Commenting on the draft law, delegate Nguyen Van Manh ( Vinh Phuc delegation) said that Clause 1, Article 54 on the operating conditions of real estate trading floors stipulates: "The person managing and operating a real estate trading floor must have a certificate of management and operation of a real estate trading floor according to the provisions of this law".
Delegates wonder whether real estate trading floor managers, in addition to a management certificate, need a real estate brokerage practice certificate?
On the other hand, Section 4 stipulates training and fostering knowledge of real estate brokerage practice and real estate trading floor management.
However, Article 69 only regulates the examination and issuance of real estate brokerage practice certificates, but has no provisions on the examination and issuance of real estate transaction management certificates. Delegates requested to clarify this content appropriately.
Delegate Dieu Huynh Sang (Binh Phuoc delegation) also proposed to complete regulations on conditions for managers and operators of real estate trading floors and real estate brokers.
In addition, clarify the state management responsibilities of the People's Committees at district and commune levels as well as specify more clearly the transitional provisions and implementation provisions.
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