A real estate exchange is a venue where all services related to real estate transactions are conducted and provided. It ensures transparency and openness, helping investors confidently search for and invest in real estate. Currently, many individuals and organizations are engaged in real estate business, seeking to professionalize their activities, leading to an increasing number of real estate exchange in the Vietnamese real estate market. Additionally, the Law on Real Estate Business 2023 has introduced a clearer and more practical legal framework for the establishment and operation of real estate exchange. This article provides additional regulations on the conditions and procedures for setting up a real estate exchange according to current legal provisions. 

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Individuals and foreign organizations owning and doing real estate business in Vietnam (P1)

Individuals and foreign organizations owning and doing real estate business in Vietnam (P2)

1. Conditions for operating a real estate exchange 

A real estate exchange is a place established and operating in accordance with this Law where the transactions of purchase and sale, transfer, lease, sublease, and lease-purchase of real estate take place. 

Accordingly, a real estate exchange must meet the operational conditions stipulated in Article 55 of the Law on Real Estate Business 2023: 

Conditions regarding real estate exchange managers and administrators: 

• Being entitled to manage enterprises in Vietnam in accordance with the Enterprise Law  

• Having completed training courses on management and administration of real estate exchanges and possessing a certificate of completion of such courses issued by training institutions 

Conditions regarding the legal status of the real estate exchange: 

• Real estate exchange service providers shall establish real estate service enterprises under Clause 5, Article 9 of the Law on Real Estate Business 2023. The name of a real estate exchange service enterprise shall be selected by its founder in accordance with the Enterprise Law and must contain the phrase “real estate exchange” and be neither identical nor confusingly similar to the name of another real estate exchange service enterprise that has been registered for operation. 

• The real estate exchange must register its operation at the Department of Construction where the head office of the exchange is located to obtain an operating license. 

Conditions regarding business location and facilities: 

• The Real estate exchanges shall register their fixed operation locations and have physical and technical foundations meeting operation requirements. The real estate exchange must have a name, a stable transaction address for over 12 months, and technical equipment that meets the requirements of the real estate trading floor’s scope of operations. 

2. Procedures for establishing a real estate exchange

Step 1: Establish a real estate service enterprise at the Department of Planning and Investment where the headquaters of company is located. 

Step 2: Draft the operational regulations of the real estate exchange. 

Step 3: Register the operation of the real estate exchange at the Department of Construction where the exchange is located. 

Step 4: Publicize the real estate transaction process at the office of the real estate exchange and commence the operation of the real estate exchange in accordance with legal regulations. 

3. Required Documents

a. Documents for Establishing an Enterprise: 

Please refer to our detailed article on establishing a company here: “Things to Know When Establishing a Company”. 

b. Documents for registering the operation of a real estate exchange: 

i. Application for the operation of the real estate exchange.

ii. Operational regulations of the real estate exchange.

iii. enterprise registration certificate. 

iv. Documents proving the right to use the premises of the real estate exchange.

v. Copy of the certificate of completion of the management and operation course for the real estate exchange manager.

vi. List of real estate brokers who have been granted a real estate broker’s license.

Thus, the establishment and operation of a real estate exchange require compliance with the legal conditions as analyzed above. With the clear regulations provided by the Law on Real Estate Business 2023, organizations and individuals can proceed with greater confidence in their activities within this field. This represents a crucial legal framework that helps create a transparent and fair business environment in Vietnam’s real estate market. 

PHAM HONG MANH | Marcus, Managing Partner

Attorney Manh always accumulates experience and enhances his expertise on the matters of consulting and legally supporting in operating the enterprise in Vietnam to ensure that all activities are compliant with the law; consulting and legally supporting foreign investors in investing and doing business in Vietnam; consulting and supports the parties in M&A transaction; consults and supports in settlement of the commercial disputes. Attorney Manh regularly consults clients, being enterprises in operation in the fields of Export, Distribution (Wholesale, Retail), Finance and Banking, Industry and Manufacturing, Information Technology, Healthcare, Real Estate and Construction, Energy, Automotive, Consumer goods, Financial technology (Fintech), E-commerce. 

manh.pham@apolatlegal.com