Recently, the National Assembly passed the Housing Law (amended) and the Real Estate Business Law (amended). Both of these laws will take effect from January 1, 2025.
Compared with previous regulations, the new Housing Law and Real Estate Business Law have many new regulations and put an end to some controversies in recent times.
Real estate transactions are not required to go through the floor.
For example, the Law on Real Estate Business does not require real estate transactions to go through the floor as stipulated in previous drafts for comments.
If transactions are required through the exchange, many administrative procedures will arise. (Photo: DPO)
Mr. Nguyen Hong Chung, Chairman of DVL Ventures, said that this is not a new regulation as it was already stipulated in the 2007 Law on Real Estate Business and was removed in 2014.
During the process of drafting the Law, the Ministry of Construction continued to propose regulations requiring real estate transactions to go through the floor in order to manage real estate trading activities.
“The reason why the Ministry of Construction made this proposal is because from 2014 to before 2022, the real estate market developed rapidly, causing many consequences. However, if transactions were required through the floor, many administrative procedures would arise. Therefore, I think it is reasonable for the new Law to remove this regulation and instead let the market regulate this,” said Mr. Chung.
Meanwhile, Mr. Nguyen Anh Que, member of the Vietnam Real Estate Association, said that for countries developed in terms of law and economy, there are specific regulations on real estate transactions having to go through the floor.
“Personally, I support transactions through exchanges, but the promulgation and enforcement of Vietnam's legal policies still need time to gradually perfect the law and gradually reach the people,” said Mr. Que.
Tighten management of real estate trading floor activities
In addition to the above regulations, the new Law on Real Estate Business also tightens the management of real estate trading floor activities, including stipulating conditions for real estate trading floor managers and operators.
Commenting on this, experts said that such regulations aim to overcome the limitations in the past regarding the real estate trading floor business activities being left unattended, without information, and the floor managers having no knowledge, leading to state agencies not being able to manage trading activities, giving rise to many fraud cases affecting the market...
Regarding the conditions for establishing a real estate trading floor, the 2013 law stipulates that there must be at least two individuals who are granted real estate brokerage practice certificates. Currently, according to the revised law, it only requires at least one individual to have a real estate brokerage certificate, and at the same time stipulates that individuals practicing real estate brokerage must meet a number of conditions.
This regulation means that real estate brokers are not allowed to practice freely.
The new Real Estate Business Law has tightened management of real estate trading floor activities. (Photo: DM)
In addition, individuals who are granted a real estate brokerage certificate must complete and have a certificate of completion of a training management course and a real estate brokerage practice knowledge training course issued by a training institution. This is also a newly added content compared to the provisions of the 2013 Law on Real Estate Business.
Most opinions agree that such regulations are very suitable for current practice and aim to properly manage real estate brokerage activities, attach responsibility to brokers in transactions, and limit fraud cases in real estate transactions as in the recent past.
In particular, the condition for individuals who are eligible to take the real estate brokerage practice certificate exam must have a certificate of completion of the mandatory training course, which will help them have enough basic knowledge and regulations of the law as well as professional ethics, thereby helping them become a professional real estate broker.
According to Mr. Nguyen Anh Que, reducing from 2 individuals to 1 is an open direction for companies with brokerage functions, and creating conditions to limit independent brokerage without an organization. He predicts that from 2025 there will be an explosion in the establishment of businesses with real estate brokerage functions and 2024 will be the year that brokerage certificate training will be noticed.
“This will improve the professionalism of real estate brokers and the ethics and expertise of this profession. However, this is still limited and must be clarified and made transparent through legal propaganda measures to bring it into line,” said Mr. Que.
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