Study Of Legal Regulation On Real Estate Broker Behavior

The legal norms of the real estate brokerage industry in China aremainly based on the legal administrative regulations and regulatorydocuments. Due to the lack of specialized laws, in many cases only canwe reference to the Contract Law, the General Provisions of the Urban RealEstate Administration Law and General Principles of the Civil Law. Forthe main body involved in the management of the real estate brokerageindustry, including Department of Industry and Commerce, Department ofHousing and Construction and other departments. Out of unreasonablemanagement system arrangements, they lead to the incoordination ofqualification management, licensing and other aspects of the brokerageindustry sector.Because of above aspects，the administrative efficiencyof government has been largely reduced. In the field of the real estatebrokerage industry, there are the brokerage institutions that muddy thewaters and deceive consumers, as well as realtors’ violations againstterms of formats and illegally pocketing the extra fees. As for brokeragebehaviors, there have been promulgated related regulations and specialnorms which aim to regulate the irregular behaviors. However, it turnsout that the brokerage industry has a long way to go.The reason why the development of the real estate brokerage markethas presented a number of problems has been found, it is the absence ofthe legal system in the certain industry. Currently, the legislative levelof real estate brokerage is less developed, and there is lack ofspecialized legislations, and the practice of norms needs to be improved,which bring in the brokerage market chaos because of deficiency of strictlegal norms. Secondly, the supervision and management system for realestate brokerage behavior has shortcomings, and the provisions of the regulatory legal system aren’t explicated. Though the regulatoryauthorities are numerous, they haven’t played regulatory efforts, notto mention the formation of an effective monitoring mechanism.Furthermore, China’s real estate brokerage industry association isconsidered as a government "helper”, the legal status is not confirmed.In the process of self-improvement, the association has dependent on thegovernment too much, with significant administrative color, theself-regulatory role play has been limited. And the brokerage agencies’access has been set lower, besides personnel qualification standard isnot high, which have greatly affected the healthy development of theindustry.At present it seems that in order to solve brokerage deficiencies inthe legal system, it’s a good choice to set the United States and HongKong as examples. I n the practice, they further improve the legislativesystem and the legislative level, strict qualification legal system,regulate the broker commission system and establish and perfect thecompensation law regime. After all, different nation makes differentplans. To perfect the legal system of brokerage industry, it must becombined with the legal system conditions of China’s brokerage industry,learning from the experience of the United States and Hong Kong ifconditions allowed, the following aspects should be considered: on theaspect of regulatory enforcement, the enforcement of existing laws andregulations needs to be strengthened, the relevant promulgation has tobe targeted on brokerage agencies and brokerage personnel; on the aspectof legal system,the market access regulations need to be enforced, themechanism for handling complaints has to be improved; on the aspect ofregulatory legal system, administrative supervision has to bestrengthened, the legal status of the industry associations needs to beclarified, and the Professional Committee of Management could beestablished; on the aspect of liability mechanism, responsibility margin system should be established,and capital regulatory liability needs tobe stringent, in order to protect the interests of consumers and promotethe legal system construction in the industry.