Due to the rising demand for property in Malaysia, the number of illegal real estate brokers has increased. These illegal real estate brokers profit from different wrongdoing that jeopardises the property industry’s reputation and they are not certified or registered.
Illegal real estate brokers often disappear after they have received money from their unsuspecting clients. Anyone in Malaysia who has been scammed and cheated by an illegal real estate broker can lodge a complaint with BOVAEA.
What is BOVAEA or Board of Valuers, Appraisers, Estate Agents and Property Managers
BOVAEA or Board of Valuers, Appraisers, Estate Agents and Property Managers is a statutory body under the Ministry of Finance that regulates property agents in Malaysia. It is governed by the Valuers, Appraisers, Estate Agents, and Property Managers Act 1981.
BOVAEA is also known as LPPEH or Lembaga Penilai, Pentaksir, Ejen Harta Tanah & Pengurus Harta.
They are tasked with proving and rejecting registration applications, conducting examinations, holding disciplinary actions, and regulating the professional conduct of valuers, appraisers, estate agents, and property managers, among other things.
What Does the BOVAEA Do for Property Agents in Malaysia
BOVAEA in Malaysia is responsible for governing and regulating the activities of property agents in the country. The board is responsible for ensuring that property agents adhere to the code of ethics and conduct, as well as for registering and licensing property agents.
Property agent registration with BOVAEA or LPPEH is compulsory for all property agents who wish to operate in Malaysia. Real estate brokers who are not registered with the board are not allowed to conduct any property-related business activities in the country.
BOVAEA is also responsible for investigating complaints against property agents and taking disciplinary action against those found guilty of misconduct. Property agents who are found guilty can be fined, suspended, or banned from practising property agent business in Malaysia.
The following are some of the BOVAEA or LPPEH functions:
- The Register of Valuers, Appraisers, Estate Agents, Property Managers, Probationary Valuers and Probationary Estate Agents (PEA), as well as businesses of Valuers, Appraisers, and Estate Agents, are kept up to date.
- Approves and denies registration applications.
- Performs exams.
- Conducts disciplinary hearings.
- Specifies a charging scale.
- Scholarships are given out.
- Valuers, Appraisers, Estate Agents, and Property Managers are all regulated by the BOVAEA Act.
Role of Registered Valuers, Appraisers, Estate Agents, and Property Managers
It is important to be aware of the role of valuers, appraisers, estate agents, and property managers. Each professional has their own area of expertise, and by understanding each one’s role in the industry, you can ensure that your clients receive the best possible service.
Valuers are responsible for estimating the value of a property, while appraisers provide an opinion on what a property might fetch at auction. Estate agents are responsible for marketing and selling properties, and property managers are responsible for managing rental properties.
Only a licensed Appraiser can use the terms ‘Valuer’, ‘Land Economist’, ‘Property Consultant’, or ‘Property Manager’. A Valuer is capable of doing valuation, property management, and property consulting services.
Valuers are educated and trained in all aspects of property usage and development, and they are only allowed to register after passing the Board’s Test of Professional Competence.
Property valuers are required for the following reasons:
- Credit and financing options.
- Purchasing and selling.
- Taxation or other legal requirements.
- Investing or other forms of business management.
- Asset appraisal for securitization and other uses.
- Studies of the market and feasibility.
Because of Appraisers’ extensive expertise and prior registration under the different Appraisers Acts, they are registered under Part V of the BOVAEA act.
Appraisers are authorised to do valuation and property management, but their practice is limited by geographical areas and value, unlike Valuers.
Estate Agents can only act if they are registered with the Board. They assist customers in buying, selling, and renting properties in order to maximise their profits.
Only a registered Valuer may currently work as a Property Manager.
The property manager guarantees that the owner receives the most possible return on his investment and makes certain that the building is well-maintained, that the building services are well-maintained, and that all costs are paid.
Property Managers know how to make the most of their resources and increase the value of their property investment. They give advice on lease renewals, tenant selection, and the right tenant mix.
Negotiators are salespeople who are not explicitly recognised by the BOVAEA Act, but who are informally acknowledged by BOVAEA as assistants to estate agents in their practice of estate agency under their direct supervision and guidance.
Negotiators are not permitted to work independently of the estate agency business, and members of the public are urged to check with BOVAEA or the estate agency firm in question if they have any questions.
Negotiators are limited to working for one estate agent at a time and on a full-time basis.
General Code of Conduct and Ethics Set by BOVAEA
- Every registered valuer, appraiser, or estate agent owes it to his client to provide unwavering service, to practise his profession with a commitment to the highest ideals of integrity, honour, and courtesy, to be loyal to his country, and to conduct business in a spirit of fairness and goodwill toward his fellow property professionals.
- After acting as an estate agent in a transaction, a registered valuer or appraiser should not value the same property for the same buyer.
- The structure and instructions established by the Board from time to time must be followed in all valuation reports.
- No registered valuer, appraiser, or estate agent shall allow or agree to enable participation in the profits of his professional activity by any person or entity other than a registered valuer, appraiser, or estate agent, directly or indirectly.
- A licensed estate agent has a responsibility to safeguard the public in all property transactions against fraud, deception, and unethical practices.
- Any commercial relationship, interest, or other connections that a registered valuer, appraiser, or estate agent has in connection with the client’s service must be disclosed to the client.
- In any one transaction, a licensed property agent cannot receive fees from more than one client.
- A registered estate agent may not act for one party in a transaction while another registered estate agent from the same firm, or a connected or associated firm, is acting for the other party in the transaction unless the parties involved are aware of and consent to it.
- The name and signature of a registered estate agent must appear on all proposals, reports, and other documents reflecting his status as a registered estate agent.
- A resident registered valuer, appraiser, or estate agent must lead a branch office of a registered valuer, appraiser, or estate agent.
Register as a Property Agent in Malaysia Licensed by BOVAEA
Malaysia’s Board of Valuers, Appraisers, Estate Agents and Property Managers or BOVAEA sets the standards for property agents in Malaysia. As a licensed property agent with IQI Elite Legacy, you will be held to the general code of conduct and ethics set by BOVAEA.
This ensures that you provide quality service to your clients and maintain the highest level of professionalism at all times. Register now to be a licensed property agent and gain access to our resources and training modules that will help you succeed in this industry.