A registered or certified property agent with Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEA) is known as a Real Estate Agent (REA) or as a Real Estate Negotiator (REN).
REA is defined by law as someone who has completed the Diploma in Estate Agency over a minimum of two years and has already completed two years of post-practical training as a Probationary Estate Agent (PEA).
Then they have to pass a Test of Professional Competence (TPC) interview before they are allowed to continue to perform a duty as a REA in Malaysia. They may also be granted the opportunity by BOVAEA to create and manage their own property agency to hire RENs.
Meanwhile, REN is not allowed to practise unless they have completed a two days Negotiator’s Certification Course training and obtained their official REN tag by working under a registered property agency.
Professional REAs and RENs are controlled by ACT 242, have a legal duty to their customers, and must follow a set of ethical standards. It is a significant concern when a property agent commits fraud, and it must be determined whether they are actually ‘Illegal Brokers’.
Who Is Illegal Real Estate Broker
Maybe you have heard before from the people talking about illegal real estate brokers. Still, do you actually know who they really are?
An illegal real estate broker is an unlicensed individual who illegally executes the functions of a registered or certified property agent, and their understanding of the business market is based on unsubstantiated information and is thus misguided.
They can be anybody who is not licensed but is demanding a commission for their services and may cheat, abscond, misrepresent, mislead, and profiteer from clients and may harm the property industry’s reputation. These people also do not adhere to the BOVAEA’s fee range.
The Malaysian Institute of Estate Agents (MIEA) has highlighted 13 ways the public might be duped. The people want the media to be truthful and sensitive in their words, and to distinguish between a registered or certified property agent and an illegal real estate broker.
The Legality of Real Estate Broker in Malaysia
According to MIEA, anyone who violates section 22(c) of the Act is guilty of an offence under Section 30(i) of the Act and faces a penalty of up to RM300,000 or perhaps a period of prison of up to 3 years, or sometimes both if convicted.
Some of the most common complaints of illegal brokers are flyers that do not comply with the BOVAEA rules, abuse of the Malaysian Estate Agency Standards, placement of posters in unfavourable locations, non-refund of earnest deposits if conditions are not met, etc.
An advertisement must not include any of the following items, according to Rule 111 of the Valuers, Appraisers, and Estate Agent Rules 1981:
- A claim that they are specialising or a specialist or expert in any particular aspect of his work.
- Self-Laudatory statements.
- An explicit solicitation of instruction.
- Comparing services of one firm to the other.
- A claim that they are specialising or a specialist or expert in any particular aspect of his work.
According to Rule 115a of the Valuers, Appraisers, and Estate Agent Rules 1981, an estate agent’s advertisement must include the following information:
- The estate agent’s registration number.
- The Registered Firm’s name, address, and phone number.
- The logo of the Boards.
- A detailed description of the property in question.
- REN / PEA information for example REN/PEA number and contact information.
All signboards and posters must include the following information, according to Rule 122 of the Valuers, Appraisers, and Estate Agents Rules 1981:
- The Estate Agent’s or PEA’s or REN’s name.
- The Estate Agent’s or PEA’s or REN’s registration number.
- The Estate Agent’s or PEA’s or REN’s phone number and email address.
- The Registered Firm’s name, address, fax, and phone number.
The BOVAEA approval number must be shown on any overseas assets permitted for marketing in Malaysia. Each location requires different paperwork that is only effective once per month after acceptance (As an example BOVAEA approval number LPPEH/88/8888/KL).
In Malaysia, overseas property agents or investors are unable to sell property on their own. They must use a locally licensed property agency in which the agency must submit a request to BOVAEA and must be represented in the convention hall at all times.
If any real estate broker associated with the registered firm is convicted of a crime involving fraud or dishonesty, or for failing to follow the acts and regulations, BOVAEA will pursue disciplinary action.
If the above is found guilty, BOVAEA may terminate the firm’s or estate agent’s registration, suspend his activity for a period of not more than three years, admonish him, or impose a fine of not more than RM10,000.
One thing to keep in mind is that MIEA has always been there for licensed property agents as a representative entity on all issues pertaining to practice with BOVAEA, relevant government agencies, and associations, as well as to be the voice for practitioners in the property industry.
How Illegal Real Estate Broker Can Scam You
Creating a false statement of truth with the goal of enticing anyone to make an agreement without the intent to commit a crime. It has been reported that charges are taken from either the buyer or the seller, despite the fact that this would be plainly illegal.
Brokers and unscrupulous people can earn from third parties, allowing them to earn almost as much as the permitted charge. Under the legislation, the recommended broker or service contract rate is 3.00%, but some persons take more as well, which is illegal.
Market manipulation may take place in two aspects: the first is by profit, and the other is through lowering the market value. When there has been an ethical dilemma in a transaction, agents are expected to disclose it to the seller.
How to Identify Illegal Real Estate Broker in Malaysia
Insisting on verifying the authority tag is the greatest method to prevent interacting with an illegal broker. Follow these six characteristics on the tag to safeguard your property assets and avoid succumbing to illegal brokers who lacked the authority to successfully advise you.
- The authority tag is available in two different colours. The red indicates that the tag bearer is indeed a REN or a PEA. The tag bearer is identified as a REA by the blue tag.
- A QR code is included in the authority tag. With the widespread popularity of mobile nowadays, it is indeed simple therefore for the community to scan and check that perhaps the negotiator is authorised with BOVAEA using their mobile device.
- Must double check the company or organisation with which the negotiator is affiliated. If the negotiator moves to a different agency or organisation, the card will indeed be replaced.
- The card has two names written on it. The bigger print name is the name being used by negotiators in making deals, whereas the smaller print name is indeed the person’s true birth name as recorded in the NRIC.
- A REN number is given to each REN. In all kinds of advertising and promotion material, the REN number must be prominently displayed. The community can use the BOVAEA’s website to see if the REN has been approved.
- To distinguish the BOVAEA brand from illegal copycat tags, a cutting-edge holographic picture has been generated.
Conclusion
Malaysia has a robust and well-regulated property industry. There are specific steps that must be followed to become a registered or certified property agent in the country.
If you want to enter this field, it is important to understand the requirements and procedures involved. At IQI Elite Legacy, we provide our property agents with full support every step of the way.
We can help you obtain your licence and start your career as a property agent. Contact us today for more information on how to become a property agent in Malaysia.
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Phone : +60 11-3969 5686
Email : elitelegacygroups@gmail.com
