Property Hunter Magazine August Issue 2014 | Page 32

/// West Malaysia Property News WEST MALAYSIA PROPERTY NEWS Sharing news and information about various issues related to the property industry from Peninsular Malaysia. House Buyers Urged to Take Action Against Bogus Realtors “Please do lodge a police report if you come across unlicensed estate agents to send a clear message that they have broken the law and that they are not tolerated,” he said in a press conference today (June 20). Jagdeep was responding to Malaysian Institute of Estate Agents (MIEA) president Siva Shanker who said in his speech earlier that despite having a law passed against unlicensed estate agents in 1981, no one has ever been charged for the offence. Real Estate Negotiator ID tag issued by The Board of Valuers, Appraisers and Estate Agents Malaysia The Penang government urged house buyers and realtors today to help crack the whip on unlicensed agents, citing concern that despite countless complaints against the illegal business, no one has been hauled to court before. Jagdeep Singh Deo, state executive councilor in charge of housing, said those who encounter such bogus agents must immediately lodge reports to the police to prevent them from cheating more home buyers. 32 www.PropertyHunter.com.my Unlicensed estate agents who broker properties illegally could be charged under the Valuers, Appraisers and Estate Agents Act 1981. Under Section 30 of the act, offenders are liable to a fine not exceeding RM300,000 or imprisonment not exceeding three years or both, upon conviction. Siva said many home buyers have complained to MIEA of these bogus estate agents accepting down payments for properties from them and then absconding with the money. “We have come across many such cases of these illegal estate agents profiteering through misconduct practices such as charging commission that are higher than the maximum three per cent we are allowed,” he said. He also declared a “war against illegal estate agents” during his speech at the opening of the Malaysian Secondary Property Exhibition (MASPEX) Penang 2014 here. He said these illegal estate agents have been a thorn in MIEA’s side due to their illegal activity as they are not regulated by any formal body unlike licensed estate agents. “We are not talking about going against one-off deals such as when someone helps a friend to sell his property for a fee but we are talking about structured groups conducting real estate businesses that are not legally registered,” he said. Siva said these illegal groups conduct the real estate business adhering to any regulation, such as taking higher commissions than allowed, refusing to refund deposits or miscalculating assets valuation. “This is why we started a nationwide RM1 million awareness campaign to tell house buyers to beware of illegal estate agents,” he said. He added that the MIEA had previously forwarded its complaints to Putrajaya but no action was taken against these illegal agents. All qualified and licensed estate agents are currently required to register with the MIEA to get an official tag to prove that they are legal. “More than 10,000 tags have been issued so home buyers must be careful to only purchase properties through agents who have valid tags,” he said. Jagdeep was responding to Malaysian Institute of Estate Agents (MIEA) president Siva Shanker who said in his speech earlier that despite having a law passed against unlicensed estate agents in 1981, no one has ever been charged for the offence.