The dark side of real estate brokerage
Brokers play a very important role in the real estate industry, acting as intermediaries connecting hundreds of thousands of transactions worth millions of billions of VND each year, bringing optimal economic efficiency to real estate assets and sustainable profits to each individual and business.
The development of real estate brokerage in Vietnam is closely linked to and reflects the development of the real estate market as well as the increasing demand for professional and diverse services in this industry, which is also considered inevitable in the development of the real estate market.
The Law on Real Estate Business 2023 was passed and took effect from January 1, 2025 with many new points towards tightening real estate brokerage activities.
Accordingly, after a period of formation and development, the real estate brokerage force in Vietnam is currently growing strongly and diversely, but also facing a number of challenges and problems that need to be solved, along with the unstable development of this industry.
In reality, despite the current regulations on penalties, the management of brokerage activities is still "left open", real estate brokerage is still a profession with almost no barriers to entry or exit.
Research data from the Vietnam Association of Realtors (VARS) shows that Vietnam currently has about 100,000 brokers operating and working officially at professional business organizations.
Of these, only about 40,000 individuals participate in activities with real estate brokerage practice certificates. The remaining hundreds of thousands, even millions of people, at the time when the real estate market is "hot", participate in connecting to conduct real estate transactions.
However, most of them are freelancers, "amateurs", "side hustlers", without training, without professional knowledge, operating spontaneously, not under the professional management of any agency. They only care about how to make the transaction happen as quickly as possible, taking advantage of the opportunity to "inflate" real estate prices for profit, hoarding goods, defrauding customers... causing market manipulation.
The consequences have caused much instability in the Vietnamese real estate market, eroded investor confidence, and damaged the image of genuine brokers. Those who truly provide information, support transactions, and create an efficient and fair trading environment for both buyers and sellers.
Tightening conditions for practice, what should real estate brokers do?
According to Vice President of Vietnam Real Estate Association - Dr. Nguyen Van Dinh, in order for the real estate market to operate safely and transparently, there needs to be a legal mechanism to bind the role and responsibility of real estate brokers in consulting, providing information, including legal procedures of real estate products and projects to protect the rights of investors and home buyers when participating in transactions.
To adapt to changes in the new legal framework, brokers need to quickly update their knowledge, improve their skills and take advantage of new opportunities in the market.
At the same time, it is also to protect the interests of practitioners, to encourage brokers to work honestly. Because to stick with the market for a long time, in addition to a professional certificate, brokers also need experience, experience and constantly update new knowledge with increasingly strict requirements.
Faced with this situation, the Law on Real Estate Business 2023 (amended) was passed and officially took effect from January 1, 2025, with many new points towards tightening real estate brokerage activities. Specifically, Article 61 of this Law stipulates that individuals practicing real estate brokerage must have a practice certificate; must practice in a real estate trading floor service business or a real estate brokerage service business.
This means that individuals are not allowed to practice real estate brokerage freely as they are now (Clause 2, Article 62 of the 2014 Law on Real Estate Business allows individuals to have the right to conduct independent real estate brokerage services). In addition, Clause 1, Article 62 of this Law stipulates that individuals practicing real estate brokerage are entitled to receive remuneration and commission from the real estate trading floor or real estate brokerage service business enterprise.
Article 48 of the 2023 amended Law on Real Estate Business requires project investors, real estate businesses, and real estate service businesses to receive payments under real estate business contracts and real estate service business contracts from customers through accounts opened at domestic credit institutions or foreign bank branches legally operating in Vietnam.
“Thus, for brokers working in real estate companies, all brokerage fees and commissions will be transferred via bank. Regarding the issuance of brokerage certificates, the Ministry of Construction will begin organizing exams and issuing real estate brokerage practice certificates. The organization method will be assigned by the Ministry of Construction or directly authorized to a number of units to organize the exams,” said Dr. Nguyen Van Dinh.
According to the representative of the Vietnam Real Estate Association, the new regulations of the Law on Real Estate Business that has just been passed will eliminate many non-professional real estate brokers, creating a healthy and transparent real estate business environment, in accordance with the Government's policy.
Transactions via accounts also help the State prevent tax losses when the commission of this force is very large. However, the above regulations also pose challenges in recruiting and training personnel for real estate trading floors. At the same time, there are also stricter requirements for the brokerage force.
In about a year, the Law on Real Estate Business as well as other laws related to this important field will officially take effect. To adapt to changes in the new legal framework, brokers need to quickly update their knowledge, improve their skills and take advantage of new opportunities in the market.
Accordingly, brokers need to spend time to master and understand new legal regulations related to the real estate sector to apply them correctly; improve expertise and skills, brokers need to continuously improve their knowledge and skills, including improving communication skills, negotiation skills, and market knowledge; use technology and management systems to optimize work processes, enhance professionalism and transparency in business operations.
At the same time, actively participate in real estate industry activities and events through professional social organizations to update information as well as build and maintain relationships in the industry; instead of focusing on only one specific type or area of real estate, brokers can look for new opportunities in different market segments or rapidly developing areas.
Source
Comment (0)