Do real estate brokers need broker licenses in Vietnam?

Do real estate brokers need broker licenses in Vietnam?

Pursuant to Article 62 of the Law on Real Estate Business 2014, requirements for real estate brokerage service providers are as follows:

1. Any real estate brokerage service providers must set up the enterprise and there are at least 2 employees obtaining real estate broker license (hereinafter referred to as broker license), excluding cases prescribed in Clause 2 of this Article.

2. Any individual is entitled to provide real estate brokerage services independently provided that he obtains a broker license and pay taxes as prescribed in law on taxation.

3. Any real estate service provider is not entitled to be both a broker and a contracting party in a real estate transaction.

Thus, according to the above regulations, to operate in real estate brokerage service, you must have a real estate broker license even when operating as a small-scale individual in Vietnam.

Are there penalties for not having a real estate broker license in Vietnam?

Pursuant to the provisions of Clause 1, Article 59 of Decree No. 16/2022/ND-CP, a fine ranging from VND 40.000.000 to VND 60.000.000 shall be imposed on:

a) Providing independent immovable property trading services without an effective real estate license as per the law;

b) Erasing or fabricating or otherwise altering the real estate license;

c) Leasing, lending, borrowing, or renting real estate license in order to engage in activities relating to immovable property trading;

d) Acting as both the brokers and the parties executing the contract in an immovable property trade.

According to this Article, if you practice real estate brokerage in Vietnam without a broker license, you may be fined from VND 40,000,000 to VND 60,000,000.

Best Regards!