Can contracting parties agree on effective date of a notarized real estate brokerage service agreement in Vietnam?

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Question date: 29/03/2023

Can contracting parties agree on effective date of a notarized real estate brokerage service agreement in Vietnam? At least how many employees obtaining real estate broker license must real estate brokerage service providers in Vietnam have? If results of real estate sale are successful, will real estate brokerage service providers receive remunerations in Vietnam?

Hello, I majored in economics and am planning to become a real estate brokerage service provider, I have some questions about this profession. When the parties make a notarized real estate brokerage service agreement, can they agree on the effective date of the agreement? When setting up a real estate brokerage service business, how many employees obtaining real estate broker license need to have? Please advise.

    • Can contracting parties agree on effective date of a notarized real estate brokerage service agreement in Vietnam?

      Pursuant to Article 61 of the Law on Real Estate Business 2014 stipulates real estate service agreement as follows:

      1. Types of real estate service agreement

      a) Real estate brokerage service agreement;

      b) Real estate counseling service agreement;

      c) Real estate management service agreement.

      2. The real estate service agreement must be made in writing. The agreement’s notarization or authentication shall be agreed by contracting parties.

      3. The effective date of the agreement shall be agreed by contracting parties and stated in the agreement. In case the agreement is notarized or authenticated, the effective date of the agreement is the date on which it is notarized or authenticated. If there is no agreement between contracting parties or the agreement is not notarized or authenticated, the effective date of the agreement shall be the day on which it is signed.

      4. The real estate service agreement agreed by contracting parties shall contain

      a) Names and addresses of contracting parties;

      b) Entities and content of the services;

      c) Requirements and results of the services;

      d) Service provision duration;

      dd) Service fee, remuneration, and service commission;

      e) Payment method and deadline;

      g) Rights and obligations of contracting parties;

      h) Dispute settlement;

      i) Effective date of the agreement.

      Thus, in the case of a real estate brokerage service agreement that is notarized or authenticated, the parties may not agree on the effective date of the agreement, in this case the contract's validity will be from the date on which it is notarized or authenticated in Vietnam.

      At least how many employees obtaining real estate broker license must real estate brokerage service providers in Vietnam have?

      According 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.

      According to this Article, enterprises providing real estate brokerage services must have at least 02 people obtaining real estate broker licenses in Vietnam.

      If results of real estate sale are successful, will real estate brokerage service providers receive remunerations in Vietnam?

      Article 64 of the Law on Real Estate Business 2014 stipulates that real estate brokerage remunerations is as follows:

      1. The real estate brokerage service providers shall receive remunerations from clients regardless of results of real estate sale, transfer, lease, sublease or lease purchase between their clients and a third person.

      2. The real estate brokerage remunerations shall be agreed by contracting parties regardless of brokerage transfer price.

      Thus, the remuneration that the real estate brokerage service providers will not depend on the results of real estate sale. That is, whether the real estate sale is successful or not, the broker will still receive remuneration in Vietnam.

      Best Regards!

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    "This English translation is for reference purposes only and not a definitive translation of the original Vietnamese texts"

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