What are the operations of enterprises trading in services of the real estate trading floor in Vietnam?
What are the requirements for establishing a real estate trading floor in Vietnam?
According to Article 69 of the Law on Real Estate Trading 2014, the requirements for establishing a real estate trading floor in Vietnam are as follows:
- Any organizations or individuals who wish to provide real estate trading floor service must establish the enterprise.
- The real estate trading floor enterprise must have at least 02 employees obtaining broker license; the manager of real estate trading floors must obtain a broker license.
- A real estate trading floor must have regulations, name, address, facilities and technical satisfying requirements in terms of operation.
The real estate trading floor operations are regulated in Article 70 of the Law on Real Estate Trading 2014:
- Conduct real estate sale, transfer, lease, sublease or lease purchase transactions.
- Organize the real estate sale, transfer, lease, sublease or lease purchase; publicly provide or post information about real estate to potential clients check documents on the real estate eligible for transactions; act as a broker between contracting parties in negotiation and conclusion of agreement on real estate sale, transfer, lease, sublease, or lease purchase.
- Organizational model of real estate trading floors in Vietnam is mentioned in Article 25 Circular 11/2015/TT-BXD as follows:
- The real estate trading floor may be an independent enterprise or an affiliated unit of an enterprise and all operations of the real estate trading floor shall be governed by the enterprise. The company’s legal representative and the manager of the real estate trading floor shall bear responsibility for all operations of the real estate trading floor.
- The floor’s manager is appointed by the enterprise’s legal representative to manage the real estate trading floor and shall bear responsibility before the law for all operations of the real estate trading floor.
- Organizational structure of the real estate trading floor includes the floor’s manager (or floor's Director) and specialized divisions in conformity with the floor's operation.
What are the procedures for establishing a real estate trading floor in Vietnam?
To establish real estate trading floors in Vietnam, enterprises must follow the procedures regulated in Article 24 of Circular 11/2015/TT-BXD (as amended by Clause 6, Article 2 of Circular 28/2016/TT-BXD) as follows:
- Any entity that wants to establish a real estate trading floor (hereinafter referred to as the trading floor) must satisfy all of the conditions prescribed in Article 69 of the Law on real estate trading.
- The entity establishing the trading floor must provide information about the established trading floor to the Department of Construction of the province or central-affiliated city where the trading floor is located or the Housing and Real Estate Market Management Agency. The Department of Construction and the Housing and Real Estate Market Management Agency shall assume responsibility to post information provided by the entity establishing the trading floor on their websites for management.
- Information provided consists of:
+ Name of the enterprise establishing the trading floor, full name of legal representative of the enterprise, and the enterprise’s address;
+ Name of the trading floor, date of establishment, location and telephone number of the trading floor, and full name of the trading floor's manager.
- If there is any change of the information prescribed in Clause 3 of this Article or when the trading floor’s activities are terminated or the trading floor is dissolved or declared bankrupt, the enterprise establishing the trading floor must report to the agencies in charge of posting information relating to the trading floor as specified in Clause 2 of this Article to modify or remove announced information.
What are the operations of enterprises trading in services of the real estate trading floor in Vietnam?
According to Article 26 of Circular 11/2015/TT-BXD as follows:
- The activities of the real estate trading floor are performed in accordance with Article 70 of the Law on real estate trading in 2014.
- The real estate trading floor must publish information of the real estate which is traded on the floor in accordance with Section 2 Article 6 of the Law on real estate trading in 2014.
- The real estate trading floor shall verify legal documents of the real estate before it is traded on the floor. The real estate shall be introduced to the customers only when all trading conditions are satisfied. The real estate trading floor shall bear responsibility before the customers and the law for the information provided for the customers.
- All services of the real estate trading floor must be carried out by means of contracts.
- Rights and obligations of the enterprise trading in services of the real estate trading floor are executed in accordance with Article 71, 72 of the Law on real estate trading in 2014. Rights and obligations of organizations and individuals joining the real estate trading floor are executed in accordance with Article 73 of the Law on real estate trading in 2014.
- The real estate trading floor shall prepare monthly reports on trading status via the floor (using the form stated in Annex 13 of this Circular). Monthly reports shall be sent to the construction department and the Ministry of Construction ahead of the 05th of the next month.
- The real estate trading floor shall effectuate the anti-money laundering plan and prepare reports on anti-money laundering in accordance with the anti-money laundering law.
Thus, trading in services of the real estate trading floor is a form of real estate trading.
Thus, a foreign enterprise can conduct operations when fully meeting the conditions prescribed by law. When trading in services of the real estate trading floor in Vietnam, enterprises in Vietnam must follow the operations of the floor as prescribed in Article 26 of Circular 11/2015/TT-BXD.
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