/// East Malaysia Property News
Unregistered Agents; RM24 Billion Illegal
Property Transactions
question about how these
brokers are running away
with client’s deposits and
marking up prices.
Steps to improve the
professionalism in the
industry are taken by
BOVAEA to remedy
the satiation. As of
May 1, all real estate
negotiators must sign up
as a member of BOVAEA.
Negotiators must register
by undertaking a one-day
training course and have
a valid real estate agent
license under BOVAEA.
Miri, Sarawak
The flourishing property
market in Malaysia has
attracted more illegal
buyers and negotiators.
According to member
of the Board of Valuers,
Appraisers and Real
Estate Agents (BOVAEA)
Eric Lim, there are an
estimated 40,000 real
estate negotiators who
are illegally broking deals
estimated to be worth
about RM24 billion each
years.
Malaysia Institute of Estate
Agents past president K
Soma Sundram said, “In
2012, real estate agents
and negotiators, legal and
illegal accounted for 60%
of the RM142 billion worth
of traction for the year.
However, one third of the
60% can be attributed to
illegal agents which work
out to about RM24 billion
worth of transactions.”
Under The Valuers,
Appraisers and Estate
Agents Act 1981, real
estate negotiators are
required to practice under
a principal real estate
agent who has been
certified. Each real estate
agent is only allowed to
42
have 20 negotiators.
The frequency of illegal
agents is obvious in
the illegal advertising
signs that are posted to
promote property for sale.
Advertisements on lamp
posts or by the roadside
are not allowed for
licensed real estate agents
and negotiators.
The rise in illegal real
estate agents is alarming
especially because no
legal action has been
taken against them
despite the complaints
from buyers and sellers.
Lim said, “To date, I do
not think that we have
had a single successful
case against an illegal
agent being taken to
court. BOVAEA is only
responsible for our
registered members
whom we regulate. These
illegal cases are reported
to the police, but little
action is taken.”
BOVAEA receives about
50 to 60 complaints per
month and 10 of which
are on illegal brokers.
The complaints raise the
www.PropertyHunter.com.my
An identification tag
will be given to these
registered negotiators
and it must be worn at all
times while conduction
business. This is similar to
the practice in Singapore.
Currently, only 16,000
negotiators have taken
this one-day course.
Soma commented, “The
problem with the illegal
agents is that many don’t
know the Act, the rules
of the standards. If you
give your money to a legal
agent or negotiator he has
to deposit it into a client’s
account. But an illegal
agent can just take the
money and disappear.”
Normally a 3% service fee
is charged by legal agents
and negotiators. But it is
usual for illegal agents to
increase the asking price
of the sellers and pocket
the difference.
Share GST Earnings From Sabah
Now that the Goods and
Services Tax (GST) Bill has
been passed in Parliament,
Likas assemblyman
Junz Wong is looking for
“alternative” ways to buffer
Sabahans from its impact.
GST will take effect in 2015.
Wong will be tabling
a motion in the State
Legislative Assembly today
to demand that the Federal
Government return to Sabah
50% of the relevant taxes
collected from the state.
Wong estimates that the
federal government will
collect about RM2 billion in
GST from Sabah once the
system is implemented