1. What is real estate brokerage?

According to Clause 11, Article 3 of the 2023 Law on Real Estate Business:

Real estate brokerage refers to acting as an intermediary for parties in the purchase, transfer, lease, sublease, or lease-purchase of real estate.

Therefore, real estate brokerage means acting as an intermediary between parties involved in the purchase, transfer, lease, sublease, or lease-purchase of real estate.

2. Content of real estate brokerage

According to Article 62 of the 2023 Law on Real Estate Business:

- Search for partners who meet customer requirements to participate in negotiations and sign contracts.

- Act as an authorized representative to carry out tasks related to the procedures for purchasing, transferring, leasing, subleasing, or lease-purchasing real estate.

- Provide information and support to parties during the negotiation and signing of contracts for the purchase, transfer, lease, sublease, or lease-purchase of real estate.

3. Can a real estate brokerage company collect deposits from customers?

According to Article 64 of the 2023 Law on Real Estate Business, businesses and individuals providing real estate brokerage services have the following rights:

(1) Provide real estate brokerage services;

(2) Request clients to provide documents and information about the real estate involved in transactions;

(3) Collect service fees from clients as agreed upon;

(4) Refuse to broker real estate that does not meet business conditions;

(5) Request related organizations or individuals to compensate for damages caused by their faults;

(6) Other rights as stated in the contract.

- Individual real estate brokers are entitled to:

• The rights specified in points (1), (2), (4), and (5);
• Receive remuneration or commissions according to regulations.

According to Article 65 of the 2023 Law on Real Estate Business, the obligations of real estate brokerage businesses and individuals include:

(1) Provide complete and truthful information and documentation about the real estate they broker and take responsibility for it;

(2) Organize training programs to improve the professional knowledge of brokers working in the company annually;

(3) Fulfill tax obligations to the State;

(4) Compensate for damages caused by their own faults;

(5) Submit reports according to legal regulations and be subject to inspection by competent authorities;

(6) Other obligations as stated in the contract.

- Individual brokers are responsible for:

+ The obligations specified in points (1), (3), and (4);

+ Complying with the operating rules of the trading floor or brokerage company where they work;

+ Participating in annual training to enhance professional knowledge.

According to these regulations, real estate brokerage companies are only permitted to provide intermediary services for transactions involving the purchase, transfer, lease, sublease, or lease-purchase of real estate, and to earn remuneration or commissions from such transactions. Collecting or receiving deposits for signing and executing real estate contracts is not part of the scope of brokerage services and is not among the rights and obligations of real estate brokerage companies as per the law. There is no specific legal provision granting such authority.

Furthermore, according to Article 292 of the 2015 Civil Code, a deposit is one of the measures to ensure the fulfillment of civil obligations. Article 328 of the 2015 Civil Code states:

- A deposit is when one party (the depositor) gives the other party (the recipient) a sum of money, precious metals, gemstones, or another valuable item (collectively referred to as the deposit asset) within a specified period to ensure the signing or execution of a contract

- If the contract is signed and executed, the deposit is returned or deducted from the payment; if the depositor refuses to proceed, the deposit is forfeited; if the recipient refuses to proceed, they must return the deposit and pay an amount equivalent to its value, unless otherwise agreed.

Thus, the purpose of a deposit is to secure the signing or execution of a contract. Meanwhile, a real estate brokerage company is merely an intermediary and does not have the authority or obligation to enter into or execute such contracts. Therefore, real estate brokerage companies do not have the right to directly sign deposit contracts or collect deposits for the purpose of entering into or performing real estate transactions.