Real estate brokerage service providers in Vietnam must possess a practicing certificate for real estate broker as of January 2025

Regarding this matter, LawNet would like to answer as follows:

1. Real estate brokerage service providers in Vietnam must possess a practicing certificate for real estate broker as of January 2025

According to the provisions of Article 61 of the Law on Real Estate Business 2023 (effective from January 1, 2025), the eligibility requirements to be satisfied by organizations and individuals providing real estate brokerage service are as follows:

- Any organization or individual that wishes to provide real estate brokerage services shall be required to establish a real estate service enterprise as prescribed in clause 5 Article 9 of the Law on Real Estate Business 2023, and must meet the following requirements:

+ Regulations on provision of real estate brokerage services are available;

+ There are material and technical facilities to serve the provision of brokerage services as prescribed by the Government;

+ There is at least 01 employee possessing practicing certificate for real estate broker;

+ Before providing real estate brokerage services, the real estate brokerage enterprise shall be required to provide its profiles to the real estate authority of the province or city where it is located for publishing on the housing and real estate marketing information system as prescribed in the Law on Real Estate Business 2023.

- A real estate broker shall be required to meet the following eligibility requirements;

+ He/she must possess a practicing certificate for real estate broker; and

+ He/she must work for an enterprise providing real estate trading floor services or a real estate brokerage enterprise.

Compared to the provisions in Article 62 of the Law on Real Estate Business 2014 (effective until December 31, 2024) on the requirements for real estate brokerage service providers as follows:

- Any real estate brokerage service providers must set up the enterprise and there are at least 2 employees obtaining real estate broker license (hereinafter referred to as broker license), excluding cases prescribed in Clause 2 of Article 62 of the Law on Real Estate Business 2014.

- Any individual is entitled to provide real estate brokerage services independently provided that he obtains a broker license and pay taxes as prescribed in law on taxation.

- Any real estate service provider is not entitled to be both a broker and a contracting party in a real estate transaction.

Thus, according to the provisions of the Law on Real Estate Business 2023, individuals will no longer be able to freely provide or independently provide real estate brokerage services as specified in the current regulations, but will be required to work for an enterprise providing real estate trading floor services or a real estate brokerage enterprise.

2. How to calculate real estate brokerage remunerations in Vietnam?

Article 63 of the Law on Real Estate Business 2023 stipulates real estate brokerage remunerations and commissions as follows:

- Real estate brokers are entitled to remunerations and/or commissions paid by enterprises providing real estate trading floor services or real estate brokerage enterprises.

- The real estate brokerage remuneration or commission shall be agreed upon by the real estate broker and the enterprise providing real estate trading floor services or a real estate brokerage enterprise. The real estate brokerage remuneration is not dependent on the price of the transaction actually conducted with the assistance of the broker.

Therefore, real estate brokers are entitled to remunerations and/or commissions paid by enterprises providing real estate trading floor services or real estate brokerage enterprises. At the same time, the level of remuneration and commission is agreed upon by the real estate broker and the enterprise providing real estate trading floor services or a real estate brokerage enterprise.

3. What do real estate brokerage contents include?

According to the provisions of Article 62 of the Law on Real Estate Business 2023 stipulating real estate brokerage contents:

- Look for partners who meet conditions set out by clients for negotiation and conclusion of contracts.

- Act as an authorized representative to follow procedures for real estate sale and purchase, transfer, lease, sublease or lease purchase.

- Provide information and assist relevant parties in negotiating and concluding real estate sale and purchase, transfer, lease, sublease or lease purchase contracts.

Best regards!