Amending the Law on Real Estate helps to increase the 'regulation' for the market in Vietnam, Amending the Law on Real Estate in Vietnam, Real estate business law, Amending the Law on Real Estate Business helps to increase the "regulation" for the market

Amending the Law on Real Estate helps to increase the ‘regulation’ for the market in Vietnam

(Vietnam) The Ministry of Construction proposed that organizations and individuals that want to conduct real estate brokerage activities must set up businesses and offices and must have practice certificates. These are the government’s latest amendments to the real estate business law and are of interest to many businesses.

Although it has been revised and completed once, the Law on Real Estate Business is currently assessed as still not keeping up with the very rapid and strong development of the real estate market as well as the domestic macro economy and the development of international economic integration of Vietnam.

Over the past time, the real estate market has encountered many shortcomings because the price “fever” has adversely affected social life. Even in this draft amending the Law on Real Estate Business, the Ministry of Construction also frankly pointed out the limitations in the real estate brokerage service business when human resources are abundant in quantity but lacking in quality.

The cause of this situation is the team of real estate brokers who are weak in expertise, have limited legal knowledge, lack professionalism, and are weak in business ethics. This leads to jerky business, even manipulating the market, contributing to the “virtual fever” to make a profit.

Amending the Law on Real Estate Business helps to increase the 'regulation' for the market
Amending the Law on Real Estate Business helps to increase the ‘regulation’ for the market

Therefore, in the draft amendments to the Law on Real Estate Business, the Ministry of Construction proposed, organizations and individuals who want to engage in real estate brokerage activities must set up businesses, offices and must have practice certificates… Accordingly, the regulation that real estate brokers are required to complete the training program of the licensed unit before taking the exam for certification and not allowing individuals to operate independently… will be included in the regulations. draft amendments to the Law on Housing and the Law on Real Estate Business 2014 for comments.

Real estate business law in Vietnam

Previously, the Law on Real Estate Business 2014 stipulates the conditions for organizations and individuals to do business in real estate brokerage services, the conditions to be tested on legal knowledge, skills Brokerage is too easy and does not require a certificate of course completion to take the exam. This has caused the brokerage team to have limited expertise.

Sharing about this, Mr. Tran Van Khoa – Director of Tay Phat Real Estate Floor (Hanoi) said that it is the fact that amateur brokers, side by side participating in the market do not follow any regulations, it’s strong to sell. , even using many price channel tricks and then “cutting blood” has made genuine brokers, even though they want to comply with legal regulations and professional ethics, sometimes have to “tilt” to survive.

Facing this situation, Mr. Nguyen Van Dinh – Chairman of the Vietnam Real Estate Brokers Association also pointed out that, although real estate brokerage is a conditional business field, some units still operate outside the network, according to the report. seasonality, following the “earth fever” in many localities. Over the years, many people have spontaneous brokerage activities without a practicing certificate. Even brokers operating alone and unprofessionally are also the cause of a series of “land fever” cases in many provinces and cities across the country. Even many exchanges and transaction centers were set up spontaneously, not complying with the law – Mr. Dinh said.

Amending the Law on Real Estate Business helps to increase the “regulation” for the market

According to the Ministry of Construction, currently, regulations on sanctions for handling violations for acts of brokerage practice without a practicing certificate are too light compared to the consequences when violations occur, only fines from 10 to 50 million VND. This sanction just stops at the level of deterrence, leading to the broker not taking the broker’s certificate seriously. Therefore, it is necessary to amend the law to increase the level of control.

Regarding this content, Mr. Pham Van Lam, Vice Chairman of Vietnam Brokerage Association, said that the issues raised by the Ministry of Construction to put into law are very appropriate and necessary. Individuals who want to work as brokers must also study for a practicing certificate and have a legal entity for the authorities to manage according to regulations Issuing a brokerage practice code is very necessary to assign responsibility and based on that to improve the quality of the brokerage profession.

In the future, state agencies may professionalize brokerage management by applying a technology platform, managing a brokerage to only do one company, working on a project to specialize. Currently, there are brokers who do 4-5 different companies, which are very easy to affect the quality of brokerage as well as unclear and transparent.

From a different perspective, real estate expert Tran Khanh Quang said that the most important thing is the transparency of management agencies and local authorities about projects and land, more than just brokers. Because, the real estate transaction between buyers and sellers is better if there is an intermediary. However, no matter how good a broker is, it only solves 50% of the problem for the market, it is still important that the project has a clear legal and public planning.

ASL LAW is the top tier Real Estate law firm in Vietnam. If you need any advice, please contact us for further information or collaboration.

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