Procedures for revocation of license and termination of operation of real estate exchanges in Vietnam

Procedures for revocation of license and termination of operation of real estate exchanges in Vietnam​ (Image from Internet)

1. Procedures for revocation of license and termination of operation of real estate exchanges in Vietnam

According to Clause 4, Article 17, Decree 96/2024/ND-CP, the provincial state management agency in charge of real estate business issues a decision to revoke the license and terminate the operation of the real estate exchange in Vietnam in the following cases:

- In cases where the real estate exchange violates the provisions under Article 8 of the Law on Real Estate Business 2023 and other relevant laws. Within 07 working days from the date of revocation of the operation license, the provincial-level state management agency in charge of real estate business is responsible for notifying in writing the Ministry of Construction and the local tax agency where the operation is registered about the revocation of the business license of the real estate exchange.

Within 60 days from the date of license revocation, the real estate exchange must pay all outstanding taxes; settle other debts; complete procedures for terminating contracts signed with employees; for service contracts signed with customers but not yet completed, it must negotiate with customers regarding the execution of those service contracts.

- In cases where the real estate exchange voluntarily terminates its operation, it must notify in writing to the provincial-level state management agency in charge of real estate business and the tax agency where the business is registered at least 30 days before the expected termination date. Within 07 days from the date of receiving the notification of operation termination from the real estate exchange, the provincial-level state management agency in charge of real estate business is responsible for notifying the Ministry of Construction in writing.

Before the termination date, the real estate exchange must pay all outstanding taxes; settle other debts; complete procedures for terminating contracts signed with employees; execute all service contracts signed with customers. In case it is unable to complete the service contract signed with customers, it must negotiate with customers regarding the execution of said service contract.

2. Regulations on temporary suspension of operation of real estate exchange in Vietnam

The regulations on the temporary suspension of operation of the real estate exchange in Vietnam according to Clause 5, Article 17, Decree 96/2024/ND-CP is as follows:

- The provincial state management agency in charge of real estate business issues a decision to temporarily suspend the operation of the real estate exchange in cases where the platform does not meet the legal operation conditions or voluntarily suspends its operation;

- In cases where the real estate exchange voluntarily suspends its operation, it must report in writing about the suspension and resumption of operation to the provincial-level state management agency in charge of real estate business, the tax authority, and the statistical authority at the location where the operation is registered and where the headquarters of the real estate exchange is located at least 10 working days before suspending or resuming operation. The suspension period must not exceed two years;

- Within 07 days from the decision to temporarily suspend the operation, the provincial-level state management agency in charge of real estate business must notify the Ministry of Construction, the local tax agency where the operation is registered in writing about the suspension of the real estate exchange;

- Reports on the temporary suspension of operation must contain the following key information: Name of the real estate exchange; number, date, month, year of the operation license issuance; head office address; suspension period, start date, and end date of the suspension period; reason for suspension; report on debt payment, resolution of service contracts with customers, and contracts with brokers and employees working at the real estate exchange.

- During the period of suspended operation, the real estate exchange must pay all outstanding taxes, continue to settle other debts, complete execution of contracts signed with brokers and employees unless otherwise agreed.

For service contracts signed with customers that have not been completed, it must negotiate with customers regarding the execution of said service contracts.

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