Property Hunter Magazine September Issue 2014 | Page 66

/// East Malaysia Property News

Protecting Property Buyers in Sarawak and Malaysia
agency firm grow in numbers and
the board has received numerous
complaints as to malpractices by
these brokers,” Bovaea senior board
member Faizan Abdul Rahman said.
Bovaea also stressed that the public
had an equally important role to play
and that they, when engaging the
services of a real estate firm, must
insist on seeing the identification tag
of the negotiator and scan the QR
code for verifi cation.
The registration exercise is timely
as the industry has been plagued
by negative image caused by illegal
brokers. Bovaea hopes that the
Real Estate services sector will be
able to maintain a high level of
professionalism and also raise the
standard of practice.

It is common to drive down the
roads of Kuching to see banners,
flyers or even stickers promoting
properties for sale. Indeed,
Sarawak’s property sector is
booming and is still growing strong.
Perhaps you know of friends or
family helping other parties in selling
their homes or properties on their
behalf as brokers, taking a small cut
from the price as payment.
Not many are aware that this
practice is illegal. Only registered
estate agents or registered
negotiators are allowed to transact
properties for a fee.
“Anyone who acts in contravention
and upon conviction, can be fined
up to RM300,000 or jailed for up
to three years or both. This rule is
already enforced and it is a serious
offence if not adhered to,” said the
Board of Valuers, Appraisers and
Estate Agents Malaysia (Bovaea).
Worse still are those who know
these facts but go on with eyes
closed!
The issue here is that these brokers
– meaning those practising real
estate without employment with
an estate agency firm – grow in
numbers.

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This is just the tip of the problem as
complains surface from consumers
regarding brokers cheating money
from consumers via these illegal
transactions.
These were some of the problems
highlighted by Bovaea having had
received numerous complaints as to
such malpractices.
Deputy Minister of Finance Datuk
Ahmad Maslan recently said the
government is aware that the
number of complaints has risen
over the years where the public has
been cheated, misrepresented and
misled in this aspect.
In a step towards combatting this,
new requirements have been
introduced for all real estate
negotiators.
All negotiators will now need to go
through a two-day structured course
designed by Bovaea, in collaboration
with Malaysian Institute of Estate
Agents (MIEA), Royal Institure of
Surveyors Malaysia (RISM) and
Persatuan Penilai, Pengurus Harta,
Ejen Harta & Perunding Harta
Swasta Malaysia (PEPS).
With the certificate of attendance,
these real estate negotiators can
apply to the board, through a
registered estate agency firm. A
maximum of only 30 negotiators are

allowed to be registered under each
real estate agent.
Each negotiator will be issued an
authority tag with an assigned
identification number which he
or she will need to wear at all
times when carrying out work as a
negotiator.
The rule also requires that all
promotional material, including
advertisements and signboards
used by the negotiators, to carry
their REN identification number.
“The idea is to recognise real estate
negotiators and to issue them with
identification tags has been long in
the pipeline.
“This is important as Estate Agents
and RENs are playing an important
role in the real estate services sector
which contributed close to RM90
billion in sales last year,” Bovaea
president Datuk Hamid Abu Bakar
said.
As the economy grows and property
transaction increases, more and
more property brokers are joining
in the band wagon to deal with
properties without the necessary
understanding, knowledge and skills.
“The number of property brokers,
meaning those practising real estate
without employment with an estate

The registration exercise attracted
16,243 attendees since October last
year and close to 10,000 RENs are
now registered by Bovaea and have
been issued with a tag each.
Opinions from local observers
Local property specialists are
optimistic this move will begin the
countdown towards regulating
the industry and aid in protecting
consumers.
BizHive Weekly spoke with Travilion
Group marketing manager Awang
Saifeluddin, Malaysian Institute
of Estate Agents (MIEA) Sarawak
chapter chairman Wong Ho Ming
(who is also Homing Estate Agency
principal) and Simon Hii, principal
of Simon Real Estate and also a
member of MIEA Sarawak.
“It is important for buyers to know
the truth about what they buy,”
Awang stressed. “This is the reason
why we have licenses.
“It is a testament to what we have
learnt, what we have studied in
order to be able to provide buyers
or sellers with the right information
they need as they sell or buy
properties.”
Wong quipped that a licensed estate
agent is governed under the Valuers,
Appraisers and Estate Agents Act
(Act 242) 1981 which dictates what
estate agents and negotiators
should and should not do.

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