General Overview of Laws Regulating Real Estate Brokerage Services on Trading Floors

policies related to the real estate market for reference and learning from experience. To have a clearer view of the function, position and importance of brokerage in the real estate market, it is necessary to have an overview of some basic aspects of the formation and development of real estate brokerage services in some countries in the world.

The general overview shows that all countries are very interested in the real estate market, which is a large market, contributing a significant part to the national income, a market that directly affects the socio-economy of the country, especially directly affects the income, life and living of the people. Although there are differences, in general, all countries have relatively synchronized legal documents to manage, create conditions to promote this market to operate effectively, healthily, stably, with high professionalism and all tend to open up, attract foreign investment in this market, which is shown from the provisions of the Law to the regulations and policies to handle each specific situation, especially when there are unstable fluctuations in the real estate market.

Real Estate Brokerage Laws in the US

The United States is one of the countries that first established the real estate brokerage business. With a population of 290 million people and 74 million households, the rate of home ownership is nearly 70%. On average, a household spends 20-40% of its income on housing. Therefore, real estate brokerage services in the United States are very developed. The US real estate market has about 50,000 brokerage firms, of which 80% focus on selling residential real estate while 8-10% focus on commercial real estate, the rest are developing high-rise buildings, farms and land, and managing and appraising real estate. 90% of brokers in the United States have graduated from high school, 45% have a bachelor's degree, their main major is residential housing [16].

The real estate brokerage profession in the US is highly regulated, for the most part.

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These regulations are drafted to protect the interests of customers, to avoid fraudulent and irregular behavior. The regulations apply at the state level, drafted by the Council of members, these members are appointed by the Governor of the state. The National Association of Realtors (NAR) brings together professional real estate consultants, brokers, administrators and appraisers. Accordingly, the legal field of real estate brokerage management has some important contents as follows:

Individuals who wish to practice as professional real estate brokers must have a real estate broker license issued by a federal state regulatory agency. Individuals who wish to be licensed as real estate brokers must attend training courses to improve their real estate brokerage knowledge organized by educational institutions authorized by the State Government. They must then take an exam to obtain a license to practice.

Most cities in the US have a professional association to help real estate brokers operate more effectively (MLS – Multiple Listing Service). This organization will provide full information about the real estate buying and selling situation in the area, it supports the activities of real estate consultants, administrators and appraisers.

Regarding real estate brokerage fees, US law stipulates that the brokerage fee is paid by the client to the real estate brokerage office when signing the real estate brokerage service contract. This amount is not refunded to the client when the real estate brokerage job is unsuccessful. US law stipulates that when the real estate brokerage deal is successful, the broker will receive a commission, this commission will be agreed upon by both parties and the rate will be clearly stated in the brokerage service contract.

Brokerage activities on the Real Estate Exchange begin with the seller registering to list the property with the agent along with the specific price and time.

The seller agrees to pay a commission (a percentage of the sale price), which is divided between the listing agent and the seller. Information about the listed property is sent electronically to the local MLS. Brokers representing the buyer search the MLS for properties that match the buyer's requirements. With the assistance of their own brokers, the seller and buyer negotiate and draw up a Sales Contract. The commission is paid only when the transaction is completed, it is paid outside the transaction, and can be determined by the seller's addition to the buyer's money. Today, although buyers and sellers have become more knowledgeable about the real estate market, with their knowledge, skills and experience, brokers are still an essential part of the real estate transaction [16].

Real estate brokerage laws in Western European countries

In Western European countries, real estate brokerage activities are also focused on by the State. Training and fostering of professional brokers is also considered important. In the European common market, there are about

150,000 real estate brokers and managers in the real estate sector (about two-thirds of them work in real estate brokerage organizations and associations; the rest work independently). Real estate brokers must comply with the general professional standards of the real estate service sector and their activities are highly competitive. Real estate brokerage activities must comply with professional ethics rules set forth by about 40 Broker Associations [25].

For example, in Poland, to obtain a professional brokerage certificate, candidates must undergo a six-month internship in brokerage companies and directly conduct brokerage transactions. In addition, when all conditions are met, candidates must pass a national exam held

by the National Council of Expertise in the field of professional practice. The examination is organized in the form of written and oral exams. Candidates must have the appropriate educational level (at least university level) and must present a certificate of completion of postgraduate or specialized training courses with a training program that meets the requirements of the Department of Housing and Urban Development. The professional training lasts 6 months, ending with an exam; after passing the exam, in order to practice professionally, it is necessary to undergo a 6-month internship in brokerage companies and directly conduct at least 15 official brokerage transactions and pass the national exam. To date, in Poland there are 25 Associations of Professional Real Estate Brokers, established in 16 provinces.

Brokerage certificates have a certificate number, customers can check the qualifications and operation process of the broker via the internet on the website of the Ministry of Infrastructure. Obtaining a brokerage certificate is only the first step on the path of professional activities of a broker. Associations always encourage members to participate in training courses to improve their capacity and brokerage skills [25].

Real Estate Brokerage Law in Shanghai, China

In Shanghai, China, in order to promote the development of the real estate market, the government has issued many regulations on real estate brokerage activities to protect the legitimate rights and interests of customers. In order to strictly manage professional real estate brokerage activities, the government focuses on human resource training.

Individuals who are 18 years of age or older, have permanent residence in Shanghai, have a high school education, and have graduated from a training course on real estate brokerage by the City Housing and Land Administration Bureau will be granted a certificate of eligibility to practice real estate brokerage before they can practice real estate brokerage. For individuals practicing real estate brokerage, they must

have capital of over 20,000 yuan or have a guarantor with assets worth over 20,000 yuan; have a fixed location for real estate brokerage activities; within 3 years before applying for a Certificate of Qualification to Practice Real Estate Brokerage, the applicant must not have a criminal record. Every 2 years, the city conducts a verification of the qualifications of real estate brokers who have been granted a Certificate of Qualification to Practice Real Estate Brokerage. The verification is conducted by the district and county real estate management agency and the Land Planning Bureau according to the plan and unified direction of the City Housing and Land Management Bureau [25].

For the establishment of a real estate brokerage organization: An organization wishing to conduct real estate brokerage activities must meet the following conditions: have at least 05 people with certificates of eligibility to practice real estate brokerage; have a real estate brokerage business registration license; have capital of over 100,000 yuan; have charter capital, clearly define the business principles and purposes; have a fixed headquarters. The real estate brokerage contract has the following basic contents: description of brokerage work; requirements and standards of brokerage; contract performance period; contract value; payment method; responsibilities of the parties; contract breach; dispute resolution method; agreement terms. The real estate brokerage service fee is agreed upon by both parties and is clearly stated in the real estate brokerage contract. Determination of brokerage service fees is based on: In the case of acting as an agent for buying and selling houses or transferring State land use rights, the brokerage fee shall not exceed 0.3% of the contract value; in the case of acting as an agent for renting houses or leasing State land use rights, the brokerage fee shall be equal to 70% of one month's rent; in the case of acting as an agent for buying and selling houses, the brokerage fee shall not exceed 1% of the contract value; in the case of real estate brokerage services, the service fee shall be agreed upon by the broker and the customer [25].

The role of real estate brokers in the real estate market in Vietnam is very important. Based on the experience of some countries, to improve and perfect real estate brokerage services, it is necessary to: (1) Perfect the law on real estate brokerage activities (2) The State needs to strengthen control over real estate trading floors as well as brokerage center organizations (3) Develop activities to support brokerage services on real estate trading floors such as publicizing planning information, establishing real estate trading floor support centers as well as focusing on training and developing human resources for real estate brokerage services in particular and human resources for the real estate market in general.

1.2. General overview of the law regulating real estate brokerage services on the trading floor

1.2.1. The need to regulate the law on real estate brokerage services on the trading floor

The law regulating real estate service business activities in general, and the law regulating the operation of real estate brokerage in particular, was issued later than the law regulating the real estate market. In 2006, when the real estate brokerage was established, the State began to manage and control real estate service business activities, including the operation of real estate brokerage. Next, the Government issued Decree No. 153/2007/ND-CP dated October 15, 2007 detailing and guiding the implementation of real estate brokerage, the Ministry of Construction issued Circular No. 13/2008/TT-BXD dated May 21, 2008 of the Ministry of Construction guiding the implementation of some contents of Decree No. 153/2007/ND-CP dated October 15, 2007 of the Government...

Since 2008, a series of real estate floors have appeared on the market, thanks to their contributions, SGDBDS has promoted the development of the real estate market. State management agencies always strive to supplement and perfect legal regulations to create a legal environment.

best solution for the trading floor. As of March 2013, according to statistics from the Department of Housing and Real Estate Market Management, Ministry of Construction, the whole country has 1,012 real estate trading floors established, of which Hanoi has 469 floors, Ho Chi Minh City has 397 floors, with the total number of people granted certificates to practice real estate brokerage and valuation up to more than 35,000 people [31].

The development of real estate brokerage activities in recent times has become more professional, especially brokerage activities on SGDBĐS. Previously, the role of a broker was only to find a "connection" to introduce customers to buy or sell a product and that was considered to have fulfilled its responsibility. The role of real estate brokers today, in addition to introducing products to customers, also provides solutions to customers, such as providing complete and accurate information about the product to customers, advising customers whether or not to buy the product, what to expect about the profitability of the product... It can be said that brokerage services are one of the important activities of SGDBĐS, the activity that brings the main source of profit to the trading floor. The 2014 Real Estate Brokerage Law was passed by the National Assembly on November 25, 2014, with many positive new points, in which real estate brokerage continues to be an important type of real estate service business. However, up to now, there are no specific legal regulations regulating brokerage activities on the Real Estate Brokerage Exchange. Brokerage activities on the Real Estate Brokerage Exchange are still mainly based on general regulations on the real estate market, real estate brokerage services... The issuance of regulations regulating real estate brokerage services on the trading floor is very necessary, because:

Firstly , the development of the real estate market will have a positive impact on the growth of the country. If the real estate market does not operate effectively, it will negatively affect economic growth, cause panic among people and threaten social stability. Therefore, to build and

Developing the real estate market under the State's management orbit, the activities of the real estate market in general, and brokerage activities on the Real Estate Trading Floor in particular, must be operated based on a complete legal framework. In addition, the real estate market has a close relationship with the component markets of the economy such as the capital market, the science and technology market, the labor market, etc. The stable development of the real estate market will have many political, economic and social implications, while when the real estate market stagnates, it will cause negative impacts on the economy. Although the real estate market was formed late, it is considered the fastest growing and most vibrant market in the market economy. The intermediary institutions of the real estate market also develop at a fast pace with great influence, so the real estate market as well as its intermediary institutions are in great need of the State's orientation, management and control through legal regulations. Accordingly, the activities of the Real Estate Trading Floor in general and real estate brokerage activities on the trading floor in particular must be specifically regulated by law.

Second , real estate business is a complex type of business because the subject of this business is valuable assets, fixed in location, unique and scarce... To do real estate business effectively, investors must understand the market, understand planning, architecture, feng shui... In addition, the real estate market is an imperfect market, influenced by customs, habits, social psychology... so investors often encounter many difficulties in real estate business. Therefore, they seek out intermediary organizations - trading floors, where they are consulted and supported by professional brokers to achieve their real estate business goals. According to current law, real estate transactions must be conducted through trading floors, in addition, the need to

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