Conditions for issuance of real estate brokerage practice certificates

According to the Law on Real Estate Business, individuals who want to practice real estate brokerage are required to have a certificate according to regulations. A real estate brokerage certificate is not only an important legal document according to the law, but also a demonstration of the capacity, knowledge and skills of people working in this field.

1. What is a real estate broker?

According to the provisions of Clause 11, Article 3 of the Law on Real Estate Business 2023 (effective from January 1, 2025): “Real estate brokerage is an intermediary for parties in buying, selling and transferring. , lease, sublease, lease purchase of real estate.”

Pursuant to Article 62 of the Law on Real Estate Business 2023, real estate brokerage content includes:

• Find partners that meet customer requirements and conditions to negotiate and sign contracts.
• Provide information and support to relevant parties in negotiating and signing real estate purchase, transfer, lease, sublease and lease purchase contracts.
• Authorized representative of customers and partners to carry out procedures for buying, selling, transferring, leasing, subleasing and leasing real estate.

According to current law, real estate brokers are required to have a real estate brokerage certificate issued by the Department of Construction of a province or centrally run city. If individuals or organizations operate real estate brokerage activities without a practicing certificate, they will be punished according to the provisions of Decree 121/2013/ND-CP. The specific administrative fines are as follows:

• Fine from 10,000,000 VND to 15,000,000 VND if an individual practices independent real estate brokerage.
• Fine from 30,000,000 VND to 40,000,000 VND if an organization or enterprise providing real estate brokerage services does not have 02 people with real estate brokerage certificates or uses real estate brokers. do not have a practicing certificate.

2. Conditions for organizations and individuals providing real estate brokerage services

To operate real estate brokerage services legally and effectively, individuals and organizations must comply with the law. Pursuant to Article 61 of the Real Estate Business Law 2023, conditions for real estate brokerage services are regulated as follows:

2.1. Organizations and individuals providing real estate brokerage services

• Organizations and individuals providing real estate brokerage services must establish real estate service businesses;
• Must establish regulations on real estate brokerage services;
• Must have adequate physical and technical facilities to meet operational requirements according to Government regulations;
• Have at least 01 individual who is granted a real estate brokerage certificate;
• Before operating real estate brokerage services, businesses must send information to the state management agency on real estate business at the provincial level where the business was established to be posted on the housing information system. and real estate market according to the provisions of this Law.

2.2. Individuals practicing real estate brokerage

Individuals practicing real estate brokerage must meet the following conditions:

• Certified as a real estate broker.
• Must practice in a real estate brokerage service business or real estate trading floor service business.

3. Conditions for granting real estate brokerage certificates

From January 1, 2025, to be granted a real estate brokerage certificate, individuals need to fully meet the conditions prescribed in Clause 2, Article 70 of the Law on Real Estate Business 2023 as follows:

• Individuals with full civil act capacity;
• The individual is not being prosecuted for criminal liability, is being held in detention, is serving a prison sentence, is being administratively processed and sent to a compulsory drug treatment facility, a compulsory education facility, or is being sent to a court. Prohibited from holding certain positions, practicing certain occupations or doing certain jobs;
• Individual who has passed the test on real estate brokerage knowledge.

To participate in the real estate brokerage knowledge exam, individuals need to meet the conditions prescribed in Clause 1, Article 70 of the Law on Real Estate Business 2023 as follows:

• Have a high school diploma or higher;
• Has been granted a certificate of completion of the training management course, fostering knowledge of real estate brokerage practice;
• Submitted the exam registration application and exam funding to the exam organizing unit.

4. How long is a real estate brokerage certificate valid?

Pursuant to the provisions of Clause 4, Article 15 of Circular 11/2015/TT-BXD, the real estate brokerage practice certificate is valid for use nationwide for a period of 05 years, from the date of issuance.

In case the certificate expires after 5 years, the owner of the expired certificate is not allowed to continue practicing as a real estate broker. If the owner of an expired or nearly expired certificate wants to re-issue a certificate, he or she must take the exam according to the following regulations:

Case 1: Register to take the exam again at the locality that issued the certificate

In this case, applicants only have to take the basic knowledge test as prescribed in Circular 11/2015/TT-BXD to be re-certified. The certificate number is taken according to the old number, on page 01 of the certificate it is clearly stated that it is re-issued for the 2nd and 3rd time (according to the form specified in Appendix 4c of this Circular).

Case 2: Register to take the exam in another locality

If registering to take the test in another locality, the individual needs to follow the same test procedure as the procedure for granting a new certificate, but only has to take the basic knowledge test.

5. Procedures for granting real estate brokerage practice certificates

The real estate brokerage industry is attracting more and more people to join because of high income and open career development opportunities. However, to operate legally in this field, individuals need to meet the prerequisite of being granted a real estate brokerage certificate. Below is the order and procedures for applying for a real estate practice certificate according to regulations:

5.1 Step 1: Prepare documents

The first step is to prepare an application to register for the real estate brokerage knowledge test. Full profile includes:

• 01 exam registration form with color photo, size 4x6cm, taken no more than 06 months prior to the exam registration date (according to the form in Appendix 1 of this Circular);
• 01 certified copy of ID card for Vietnamese or Passport for foreigners (or a copy with the original for comparison);
• 01 certified copy of Certificate of completion of course on training and fostering knowledge to practice real estate brokerage (if any);
• Certified copy of high school diploma (or equivalent) or higher;
• 02 color photos sized 4x6cm, taken no more than 06 months before the exam registration date and 02 stamped envelopes clearly stating the recipient’s full name, phone number, address;
• Certified copy and translation of a certificate issued by a foreign country (for foreigners and Vietnamese with a valid foreign-issued real estate brokerage practice certificate).

5.2 Step 2: Submit application

Registration documents for the examination are submitted to the local Department of Construction. Based on the number of candidates registered to take the exam as well as the actual situation of the locality, the Department of Construction will organize the exam.

Submit your application to the Department of Construction at the provincial or centrally run city level

Each candidate needs to submit 02 sets of exam registration documents according to regulations and exam funding directly to the exam organizer. Of which, 01 set is saved at the exam organizing unit and 01 set is sent to the Department of Construction for certification. Time and location for submitting documents are according to the notice of the Department of Construction or the exam organizing unit.

5.3 Step 3: Take the test

The Department of Construction of provinces and centrally run cities is responsible for organizing the exam and issuing real estate brokerage certificates. The exam can be held in one of the following forms:

• Functional units under the Department of Construction directly organize the exam;
• The Department of Construction authorizes one of the qualified agencies and units to organize the exam (Vietnam Real Estate Association; Vietnam Real Estate Brokers Association; Real Estate Association of provinces and cities).

5.4 Step 4: Wait for approval results

Candidates who pass the exam according to regulations will be eligible to receive a real estate broker certificate. Accordingly, a satisfactory test must ensure the following results:

• The basic knowledge test scores 70 points or more on a 100-point scale.
• The professional knowledge test scores 70 points or more on a 100-point scale.

After the test results are available, the real estate brokerage practice certificate will be issued in the following order:

• The Chairman of the Exam Council reports to the Director of the Department of Construction on the process of organizing the exam and approving the exam results at the request of the exam organizer
• The Director of the Department of Construction approves the list of certified individuals based on reports and exam results approved by the Chairman of the Examination Council
• Based on the approval decision of the Director of the Department of Construction, the exam organizer is responsible for transferring copies of the test and individuals’ records to the Department of Construction for certification. Within 10 working days from the date of receipt of complete and valid documents, the Department of Construction shall print and issue the certificate
• The Department of Construction is the competent agency responsible for keeping records of certificate holders as prescribed in Clause 2, Article 14 of this Circular

Individuals need to go directly to the Department of Construction and pay the certification fee of 200,000 VND for one certificate. The Department of Construction uses this funding according to the provisions of law on fees and charges.

6. Procedures for reissuing real estate brokerage certificate

In case the real estate brokerage practice certificate has not expired but is lost, burned, torn, destroyed due to natural disasters or other force majeure reasons, the individual has the right to apply for a re-issue of the certificate according to regulations.

According to the provisions of Clause 2, Article 16 of Circular 11/2015/TT-BXD, the application for re-certification is submitted to the Department of Construction, including the following documents:

• Application for re-issue of certificate with photo (according to the form in Appendix 5 of this Circular);
• 02 4x6cm photos taken within 6 months up to the date of application;
• Old certificate (if any).

Within 10 working days from the date of receiving complete documents, the Department of Construction is responsible for re-checking the documents and re-issuing the certificate. Note, the certificate can only be reissued once, the certificate number is the old certificate number. The re-issued certificate has a validity period of 5 years from the date of issuance of the old certificate. Applicants for re-certification need to pay a fee of 200,000 VND to be re-issued with a new certificate.

7. Regulations on revocation of real estate brokerage certificates

A real estate brokerage practice certificate is a mandatory condition for individuals to be allowed to operate in this field. However, during practice, if a broker violates legal regulations, his or her certificate may be revoked. Cases of certificate revocation are specifically stipulated in Article 18 of Circular 11/2015/TT-BXD, including:

• The person issued with the certificate has lost civil act capacity;
• The certificate holder’s statements in the certificate application dossier are untruthful;
• The certificate is erased or modified;
• The certificate holder lends or rents the certificate to others to practice;
• The certificate holder violates the practice principles prescribed in the Law on Real
• Estate Business and the content stated in the certificate;
• The certificate holder violates the regulations to the extent that the certificate is revoked according to the provisions of law.

Individuals whose certificates are revoked will not have their practicing certificates re-issued within 5 years from the date of the revocation decision. After the decision to revoke the certificate, the Department of Construction will notify the revoked person to return the certificate. At the same time, we also notify and delete the name of the certificate holder on the website of the Department of Construction.

A real estate brokerage certificate is not only a mandatory legal document but also an important tool to enhance the reputation of brokers. Through the issuance of certificates according to regulations, competent state agencies also have enough basis to control and promote the real estate market to develop transparently and effectively.

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