90% of real estate brokers are not licensed: real estate association
People studying for real estate broker license exam in Ho Chi Minh City. Photo by VnExpress/Trung Tin
There are 300,000 real estate brokers, but only 10% have licenses, according to data from the Vietnam Association of Real Estate Agents.
The association said most unlicensed brokers are hobbyists and include people who have recently decided to change jobs to take advantage of the housing boom.
They are neither trained nor regulated, and analysts fear they pose a risk to buyers, sellers and the market as a whole, with some also blaming them for causing market disruptions and price bubbles in spreading rumors about the development.
The real ratio of unlicensed brokers could be even higher since the study was only carried out among the 300 member companies of the association.
At least 1,000 businesses were operating before Covid-19.
Meanwhile, the number of applications for real estate broker licenses in the south has increased eightfold this year, with 2,186 people taking the broker’s exam in the first five months of this year, up from 275 last year. , according to data from the Ho Chi Minh Municipal College of Construction.
The government made licenses compulsory in July 2015, and all previously issued licenses were valid until 2021, said Luong Dinh Thu Van, CEO of real estate training center Mogin Institute in HCMC District 1.
“Because of Covid-19 last year, many people were unable to take the exam for a new license.”
Brokers who operate without a license could be fined VND60 million ($2,600), she said.
The HCC has recommended the establishment of a broker reference check portal to improve transparency in the real estate market.
He also suggested letting those with entry-level certificates and more than a year of experience take the broker’s exam and removing the requirement for a high school diploma.
Easing eligibility would help independent brokers operate professionally in compliance with laws and regulations, he added.