Real Estate Consulting and Management Services under Vietnamese Law

1. Regulations on real estate consulting services and real estate management services under Vietnamese law

Current legal framework: the Law on Real Estate Business 2023 (Law No. 29/2023/QH15, effective 01/8/2024) and Decree 96/2024/ND-CP detailing its implementation have replaced the Law on Real Estate Business 2014 (including Articles 74 and 75 of the old law).

Article 66 of the Law on Real Estate Business 2023 prescribes the principles and scope of real estate consulting services and real estate management services: real estate consulting services mean the consultant assisting the party in need in seeking and providing real estate information and advising on investment, creation, purchase, sale, transfer, lease, rental, and hire-purchase of real estate; real estate management services mean the manager performing one or more management activities for the real estate owner or the person authorized by the owner.

Article 67 of the Law on Real Estate Business 2023 prescribes the conditions for organizations and individuals conducting real estate service business: organizations and individuals conducting real estate consulting and management service business must establish a real estate service business enterprise under this Law; where conducting management services for apartment buildings or mixed-use buildings for residential purposes, they must meet the conditions prescribed by housing laws; before conducting real estate service business, the real estate service business enterprise sends information about the enterprise to the provincial-level state management authority on real estate business where the enterprise is established, for posting on the housing and real estate market information system as prescribed by this Law.

Article 68 of the Law on Real Estate Business 2023 prescribes the rights and obligations of the parties and service prices: the rights and obligations of organizations and individuals conducting real estate consulting and management service business and the rights and obligations of clients are performed under the contract, ensuring they do not contravene the law; the prices of real estate consulting and management services are agreed by the parties in the contract, except where the law provides otherwise; organizations and individuals conducting real estate service business must compensate for damage caused by their fault as prescribed by law and the contract.

In principle, real estate consulting services and real estate management services are two independent types of real estate services but may be provided simultaneously in the same service contract, provided the enterprise fully meets the conditions for real estate service business under Article 67 above.

2. What should be noted in real estate consulting and management service contracts?

A real estate consulting and management service contract is a civil contract whose object is the provision of services; the parties should clearly agree on the scope of work, service price, payment method, performance term, rights and obligations of each party, liability for damage compensation, and dispute resolution mechanisms, ensuring they do not contravene the law. For management services of apartment buildings or mixed-use buildings for residential purposes, the contract contents must also comply with housing laws.