REAL ESTATE BROKERS NOW REQUIRE CERTIFICATION

Regulations of granting certificates to real estate agents took effect in 16th February 2016, which are promulgated by the Ministry of Construction in Circular No. 11/2015/TT-BXD.

The circular that took effect on last Tuesday stipulates that brokers must be tested on laws governing real estate trading, the property market and investment, money laundering, and brokering and other relevant skills.

Local construction departments will organize the tests and issue certificates to candidates, who must also possess at least high school diplomas. The certificate will be valid for five years from the date of issue.

Individuals or companies seeking to set up a real estate trading floor should establish a company with a certified broker as chief and at least two other agents with valid certificates.

The trading floors must have a minimum area of 50 square meters and the requisite equipment.

Some 26,000 brokers have been certified so far after finishing a short training course, according to the ministry.

The circular has more requirements for applicants.

Analysts described the new circular as a robust move to regulate the working of real estate brokers and trading floors, minimizing risks for customers.

But others said it could be too little.

They pointed out that there is a boom in trading floors and many use tricks similar to those adopted by multi-level marketing companies such as sending messages to customers, providing misleading information about real estate products, causing price bubbles.

Many of the larger ones have 500-600 employees, and often in the thousands, but the circular only requires them to have two certified brokers, they said, adding it would not have any impact on property trading floors.

So the new circular is unlikely to improve the chaotic situation in the real estate market, many warned.

Allowing sale of unfinished projects is another major reason for brokers getting away with providing inaccurate and even false information.

To ensure the efficiency of the new regulation, analysts said the ministry should increase the number of certified brokers per real estate trading floor since two is too few.

To ensure brokers are on their best behavior and comply with the law, strong sanctions in case of violations, including cancellation of their certificates, are also needed, they said.