Real estate broker license demand jumps as regulations tightened

Real estate training facility Mogin Institute in HCMC’s District 1 took in 150 students in March, triple the number in January. All joined the course to get a broker’s license.

A real estate major at a HCMC college who asked not be named said they saw 1,000 people take a broker’s examination at the end of March compared to 100 in January.

Many real estate brokerages are also seeking to help their employees acquire licenses.

The CEO of a company in Thu Duc City with over 100 employees said less than half his brokers lack licenses and the company is trying to get them certified in the next three months.

Luong Dinh Thu Van, CEO of Mogin Institute said the tightening of regulations has caused people to seek licenses.

The government made licenses compulsory in July 2015, and all licenses issued before that was effective until 2021, she said.

“Because of Covid-19 last year many people could not take the examination for a new license.”

Brokers who conduct business without a license could be fined VND60 million ($2,600), she said.

Pham Lam, deputy chairman of the Vietnam Association of Realtors, said another reason for the jump in demand for licenses is brokerages’ desire to improve the quality of their human resources.

Some brokers do not even have a high school diploma, and the fact they are not eligible for a license means the standard of the industry would be pushed up, he said.

“Those who do not want to get a license are not committed to the industry and only seek short-term gains. They will eventually be removed from the market.”

Some analysts blame brokers for causing the recent disruptions in the real estate market and prices to surge by spreading rumors about development.

A decree issued in January this year fines brokers up to VND250 million for misconduct such as providing false or inadequate information about a real estate project.