What are the fines for renting a real estate brokerage practice certificate? What are the penalties for failing to provide truthful information about real estate in Vietnam?
What are the penalties for renting a real estate brokerage practice certificate in Vietnam?
Pursuant to Clause 1, Article 59 of Decree 16/2022/ND-CP, the following provisions apply:
"Article 59. Violations of regulations on real estate service business
1. A fine ranging from VND 40,000,000 to VND 60,000,000 shall be imposed for one of the following acts:
a) Independently conducting real estate brokerage services without a practicing certificate or with an expired practicing certificate as per regulations;
b) Altering or tampering with the real estate brokerage practicing certificate thereby falsifying its content;
c) Lending, leasing, or renting, borrowing a real estate brokerage practicing certificate to carry out activities related to real estate brokerage;
d) Organizations or individuals conducting real estate brokerage services acting both as a broker and as a party in a real estate transaction."
The act of lending, leasing, or renting, borrowing a real estate brokerage practicing certificate to carry out activities related to real estate brokerage shall be administratively fined from VND 40,000,000 to VND 60,000,000.
How much is the fine for renting a real estate brokerage practicing certificate? What are the penalties for not providing truthful information about real estate?
Vietnam: Is a real estate service business contract without all required principal contents subject to penalties?
Pursuant to Clause 2, Article 59 of Decree 16/2022/ND-CP, the following provisions apply:
"Article 59. Violations of regulations on real estate service business
...
2. A fine ranging from VND 120,000,000 to VND 160,000,000 shall be imposed for one of the following acts:
a) Conducting real estate service business without establishing an enterprise as per regulations or without having the required number of individuals with a real estate brokerage practicing certificate as per regulations or with an expired practicing certificate as per regulations;
b) The real estate service business contract is not in writing or does not include all required principal contents as per regulations;
c) Real estate brokerage service businesses, real estate trading floor services, or individuals independently conducting real estate brokerage services fail to report as per regulations;
d) The real estate trading floor operates without a charter or operates contrary to the approved charter by the competent authority, operates without a name, without an address as per regulations, or changes its name, address but does not notify the competent authority as per regulations;
dd) Charging fees for real estate service business activities that are not prescribed by law."
The act of establishing a real estate service business contract without writing or without all required principal contents as per regulations shall be administratively fined from VND 120,000,000 to VND 160,000,000.
What are the penalties for real estate brokers who do not provide truthful information about real estate in Vietnam?
Pursuant to Clause 3, Article 59 of Decree 16/2022/ND-CP, the following provisions apply:
"Article 59. Violations of regulations on real estate service business
...
3. A fine ranging from VND 200,000,000 to VND 250,000,000 shall be imposed for one of the following acts:
a) Putting real estate on the trading floor that does not meet the conditions as prescribed;
b) Failing to provide, providing incomplete or untruthful documents, information about the real estate they are brokering."
Thus, the act of real estate brokerage without providing truthful documents, information, or failing to provide, providing incomplete information about the real estate shall be administratively fined from VND 200,000,000 to VND 250,000,000.
Additional penalties and remedial measures for violations of regulations on real estate services in Vietnam
Pursuant to Clause 4, Clause 5, Article 59 of Decree 16/2022/ND-CP, the following provisions apply:
"Article 59. Violations of regulations on real estate service business
...
4. Additional penalties:
a) Revoking the practice certificate for a period of 03 to 06 months for the act specified at Point c, Clause 1 of this Article;
b) Suspending the business operation of real estate trading floor services for a period of 06 to 09 months for acts specified at Point a, Clause 2, Point a, Clause 3 of this Article.
5. Remedial measures:
a) Requiring to have a practicing certificate as per regulations when independently conducting real estate brokerage services for the act specified at Point a, Clause 1 of this Article;
b) Requiring surrender of the altered or tampered practicing certificate to the competent authority that issued the practicing certificate for the act specified at Point b, Clause 1 of this Article;
c) Requiring the establishment of an enterprise as prescribed when conducting real estate service business or having sufficient individuals with real estate brokerage practicing certificates as prescribed for the act specified at Point a, Clause 2 of this Article;
d) Requiring the execution of a contract or a real estate service business contract with all principal contents as per regulations for the act specified at Point b, Clause 2 of this Article;
dd) Requiring compliance with reporting policies as prescribed for the act specified at Point c, Clause 2 of this Article;
e) Requiring the return of collected real estate service business fees as prescribed for the act specified at Point đ, Clause 2 of this Article;
g) Requiring the provision of information about real estate as per regulations for the act specified at Point b, Clause 3 of this Article."
Thus, based on the violation of regulations on real estate service business, appropriate remedial measures and additional penalties will be applied corresponding to the specific violations as specified above.
Note: The administrative fine levels mentioned above are only applicable to organizations. In case of individual violations, the administrative fine level shall be one-half of that applicable to organizations, except for the fine levels at Points a, b, Point c, Clause 1, Article 59 of Decree 16/2022/ND-CP which are the administrative fines applicable to individuals.
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