Real Estate Brokerage: Must Meet Conditions to Operate

1. Conditions for Real Estate Brokerage Operations

In accordance with Article 62 of the 2014 Real Estate Business Law, organizations and individuals wishing to engage in real estate brokerage activities must meet the following conditions:

- Organizations or individuals engaged in real estate brokerage services must establish an enterprise and have at least 02 persons holding real estate brokerage practice certificates, except as provided in Clause 2, Article 62 of the 2014 Real Estate Business Law.

- Individuals are entitled to operate real estate brokerage services independently but must have a real estate brokerage practice certificate and register to pay taxes in accordance with tax laws. To be granted a real estate brokerage practice certificate, individuals must meet the following conditions:

- Have full civil act capacity;- Have a high school education or higher;- Have passed the examination on real estate brokerage knowledge.

The real estate brokerage practice certificate is valid for 05 years.

- Organizations or individuals engaged in real estate brokerage services must not simultaneously act as a broker and a party in a real estate transaction contract.

2. Content of Real Estate Brokerage

According to Article 63 of the 2014 Real Estate Business Law, this activity includes the following contents:

- Finding partners that meet the customer’s requirements to engage in negotiations and sign contracts;- Acting as an authorized representative to perform tasks related to the procedures for buying, transferring, leasing, subleasing, or leasing-purchasing real estate;- Providing information and support to the parties in negotiating and signing real estate purchase, transfer, lease, sublease, or lease-purchase contracts.

3. Brokerage Fees and Commissions

Enterprises and individuals engaged in real estate brokerage services receive brokerage fees from customers regardless of the outcome of the transaction for buying, transferring, leasing, subleasing, or lease-purchasing real estate between the customer and a third party.

The brokerage fee for real estate is agreed upon by the parties in the contract and is not dependent on the value of the brokered transaction.

Additionally, when customers enter into a contract for buying, transferring, leasing, subleasing, or lease-purchasing real estate, enterprises or individuals engaged in real estate brokerage services are entitled to receive a brokerage commission. The brokerage commission for real estate is agreed upon by the parties in the contract.

These provisions are stipulated in Articles 64 and 65 of the 2014 Real Estate Business Law.

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