Who is Real Estate Negotiator & Rules Governing the REN

The number of illegal and unregistered real estate brokers is a cause of concerns in Malaysia lately. More than 50 real estate frauds are reported monthly as a result of illegal real estate transactions.

Who is Real Estate Negotiator?

According to Section 22C of Valuers, Appraisers, Estate Agents and Property Managers Act 1981 and Act 242, all real estate agents and negotiators are required to be registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) and any firm or individual (aside from property owners) collecting fees from real estate practices are deemed to be in contravention of the law.

Under the Section 22C (2A) of the Act 242, a negotiator means a person that is employed by a registered estate agent to assist him in the estate agency practice.

Negotiators are salespersons who are not given explicit recognition in the Act or Rules but are informally recognized by the Board as assistants engaged by estate agents in their practice of estate agency under their immediate direction and supervision. Hence, negotiators are not authorized to act independently of the estate agency firm and when in doubt members of the public are advised to check with the Board or the estate agency firm concerned. Negotiators can only work for one estate agent at any one time and on a full-time basis only. (Source: https://lppeh.gov.my/WP2016/role-of-negotiators/)

Rules Governing the REN

Under Section 30 of the Valuers, Appraisers and Estate Agents Act 1981, anyone who commits an offence is liable upon conviction to a fine not exceeding RM300,000 or imprisonment not exceeding three years or both.

Common complaints of the Real Estate Brokers are such as flyers not conforming to Board’s rules, abuse of the Malaysian Estate Agency Standards (Practice), placing of poster in undesirable places, non-refund of earnest deposits upon conditions are not being met, leasing of REN tags, etc.

Most of the complaints and offences are from the advertisements and posters.

According to the Rule 111 of Valuers, Appraisers and Estate Agent Rules 1981, an advertisement shall not contain any of the following:

• An inaccurate or misleading statement of fact

• An explicit solicitation of instruction

• Comparing services of one firm to the other

• A claim that they are specializing or a specialist or expert in any particular aspect of his work

• Self-Laudatory statements

According to the Rule 115a of Valuers, Appraisers and Estate Agent Rules 1981, an advertisement made by an estate agent shall include:

• The registration number of the Estate Agent

• The name, address & telephone number of the Registered Firm

• The Boards logo

• A description of the property concerned

• The REN / PEA details (i.e REN/PEA number and contact number)

And according to Rule 122 of Valuers, Appraisers and Estate Agent Rules 1981, all signboards and posters used may display:

• The name of the Estate Agent or PEA or REN

• The registration number of the Estate Agent or PEA or REN

• Designation

• The contact number and email address of the Estate Agent or PEA or REN

• The name, address, fax & telephone number of the Registered Firm

• and shall display the logo of The Board

If any real estate broker under the registered firm convict any offence involving fraud or dishonesty or not abiding to the acts and rules, Board will take action by going through disciplinary proceedings.

If above found guilty, the Board may cancel the firm / estate agent’s registration, suspend his practice not exceeding 3 years, admonishing him or imposing a fine not exceeding RM 10,000.

One thing to take note for, Malaysia Institute of Estate Agents (MIEA) has always there for Real Estate Negotiators and Estate Agents as an entity to represent all members on all issues in regards to practice with BOVAEP, relevant government agencies, associations and to be the voice for Practitioners in the real estate industry. This is to in-sync with their motto to unite all and protect the interests of all Practitioners in this profession. MIEA will assist to mediate conflicts and disputes arises amongst the members.

Author: David Wu