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Friday, December 28, 2007

New Year 2008 Brings New Hopes As Well As New Challenges to Real Estate Marketers.

Hi Folks,

In just three days time, Year 2007 will be leaving us behind - hopefully, with sweet memories - and a brand new year will be arriving with new hopes, God willing.

But one of the earliest dampener for the New Year could well be new price hikes for fuels (petrol, diesel and LPG): the lower middle and lower income groups will, in my view, be quite hard hit because any steep hikes in fuel prices is likely to bring about a multitude of price hikes across a broad range of consumer items - many of which were already on the rise by 30% this year....hmmmm

That may also explain why many were so easily persuaded to join the recent spates of street demo - something by the thousands not so possible previously whatever the persuasions...

Tighter control on inflationary pressure and more economic measures to increase per capita real incomes across the board will be the sure way, in my view, to neutralise any extremist groups trying to fish in troubled waters...Just my 2 sen's worth.

Anyway, the new year 2008 will certainly bring us new hopes as well as challenges.

Hope that it will not be very hard on marketing people like you and I who need to travel quite a bit to fish for our marketing incomes...

For the new year resolutions, perhaps we can consider the possibility of new sources of income such as via Internet business:
1) if interested to know more about the whats, the whys and the hows of Internet business, there are structured posts in this blog: http://MoneyMakingViaInternet.blogspot.com; and,
2) when you are ready to launch an Internet business, visit:
a) http://GT-ibiz.com/domainname/ to grab a good domain name real cheap;
b) http://GT-ibiz.com/webhosting/ to grab a good hosting package;
c) http://www.GT-ibiz.com for all the web tools you need for Internet business.
3) when you have made enough money, check out http://www.eOneBay.com/ for all the great gifts you may want to send for various occasions and special reasons!

The links to all the abovementioned blogs and web sites can be clicked on the left of this blog.

May God bless us all in this New Year.

Cheers,
Douglas GT Tan

Friday, December 14, 2007

What Professional Fees Can Estate Agents, Property Managers & Valuers Charge Under the Law in Malaysia?

Hi Folks,

Under the normal law of commerce and contract, there is wide if not absolute freedom to contract for both parties to a transaction - that is, to negotiate and agree on all matters and issues pertaining to that transaction including the price.

However, once a business practice becomes a professional practice by law, there will be legal stipulations governing the conduct of what is now a professional practice including the amount of professional fees that may be charged as a matter of public interest.

On professional fees that may be charged, there are usually: a maximum ceiling and a minimum ceiling. Charging professional fees above the prescribed maximum ceiling amounts to the offence of over-charging; whereas, charging below the minimum amount amount to an unethical conduct of under-cutting fellow professionals.

Go to the official web site of the Board of Valuers, Appraisers & Estate Agents Malaysia (just click on the link given) if you want to know what professional fees are chargeable by registered estate agents, property managers and estate agents!

Don't be overcharged! Neither should you under-pay a Registered Estate Agents!

Cheers,

Douglas GT Tan

Thursday, December 13, 2007

How to check whether you are dealing with lawful estate agents or their assistants (aka Negotiators)?

Hi Folks,

The Board of Valuers, Appraisers & Estate Agents Malaysia has now make it easy and possible for members of public to check through its official web site whether the person you are dealing with is a lawful real estate agent or a Negotiator employed by a registered estate agency firm.

How to check, you may ask?

Just go to the Board's official website and enter any of the following in the relevant search boxes at the site's homepage:
1) the firm's name or its E No. - to check if the firm is a registered estate agency;
2) the agent's name or the person's E No. - to check if he is indeed a registered estate agent;
3) the probationary estate agent's name or E No. - to check if he is indeed a probationary estate agent (meaning those who have passed the written exams and are now en-route to the final Test of Professional Competence);
4) the Negotiator's name - to check whether he is in the lists of Negotiators which all registered estate agency firms have to furnish to the Board on half yearly basis by end of June and December or within one month (or, is it within 7 days? Will check on Circular 2/2006) upon any changes - new recruitment, resignation, dismissal and the likes - in their employment register of Negotiators.

So members of public whenever you want to check whether you are dealing with the lawful party, just click: here!

Cheers,

Douglas GT Tan

Tuesday, December 4, 2007

Further Protection of Public Interests by Malaysian Estate Agency Standards 1999

The Malaysian Estate Agency Standards (MEAS) which came into force on 1 Sept 1999 - to further regulate the practice of estate agency in Malaysia under power given to the Board of VAEA under sec 10(g) of the VAE Act 1981 - provides further protection of public interests through its various standards - one of which known as Standard 9 is about the employment of assistants (known as the "Negotiators") of the registered estate agents.

Not anyone can any how be engaged by the REAs as their Negotiators - this is clearly to ensure the public is served by Negotiators who can be held accountable for their actions and conducts and not by those on loose attachments or who "work" for unregistered persons on "loan" licences from sleeping REAs who can clearly "fly by night" when necessary.

Standards 9 requires Negotiators to work full-time and not part-time (Std 9.2.3), always under the direction and supervision of the REAs (who therefore are not allowed to be "sleeping")(Std 9.2.1) and not to operate independently (9.2.2) nor to sign any formal estate agency letter or document nor advertise on behalf of the REAs (Std 9.2.17)...

To ensure that Negotiators are full-timers, Std 9.2.12 and the Circular 1/2000 on it requires the Negotiators to be paid monthly salaries (with EPF contributions as stipulated in another Circular)...

To ensure that the Negotiators are not from the "licence-leasing" firms who are traditionally paid high commission (70% or more) with no salary, Std 9.2.12 imposes a 40% ceiling on commission payable to a Negotiator from any deal assisted/handled by him/her...

You see, if a Negotiator gets 70% or more, chances are the REA would not want to spend time and effort (not to mention money too) supervising and training them for the remaining 20% to 30% of the commission in return.

Negotiators on high % commission are mostly on loose attachment or working for licence-leasing firms where the REA concerned would not sign any formal document using his/her official name, official designation and signature for the reasons already given in the preceding post - to disclaim responsibility if there is a civil suit or investigations for offences.

To ensure effective supervision, direction and training, Std 9 further imposes the max number of Negotiators who may worked under a REA to 20 at any one time (Std 9.2.14).

Signs of Negotiators who work on "loose attachment" to or for "licence-leasing" firms are these:
# they are not paid the compulsory monthly salary and the EPF contributions thereon;
# they are on high % commission payout;
# their firms have more than 20 Negotiators per REA;
# their formal documents are not signed under the official name, official designation or signature of any REA in the firm;
# the address on the letterhead of their document may not be the registered address of the REA firm as at that time - of course, when there are fees to be claimed, they will then register or change to the correct business address.

Deal only with bona fide REAs, REA firms and Negotiators - say NO to any practice by "Loose Attachment" or "Licence Leasing"!

Cheers,
Douglas, GT TANHALIM


P/s: Compliance with the Standards 1999 by the REAs is required under Rule 110 of the VAE Rule 1986.

Thursday, November 22, 2007

Modus Operandi of REAs Who "Sells...Sublets..." His Authority to Practise Real Estate Agency

How does a Registered Estate Agent "sells or sublets" his authority to practise real estate agency to unregistered persons?

According to information gathered from my "students" at a college (now university college) where I was giving talks/lectures on the subjects of "estate agency law and practice", the subletting of "licence to practise" is usually carried out these ways:
# 1 person who "rents" the licence will pay the "sleeping REA" a monthly "rent" of a few thousands Ringgit plus 10% to 20% of agency fees collected for the right to exclusive use the licence; or,
# a number of persons, with each paying a few hundreds RM per mth plus 10% to 20% of commission collected in the each month as "rent" in return for the right to recruit their quota of loosely attached illegal Negotiators to practise real estate agency.

In order to ensure that the sleeping principal:
# can disclaim/escape responsibility when there are troubles - such as when there is a suit for misrepresentation by a customer or a prosecution by the authority; or,
# can file a claim for estate agency fee,
all formal documents - such as an agreement for fees - will be executed with calculated ambivalence where the letterhead and registration nos are that of the estate agency/REA but the name used is not that of the REA (usually a nickname), the signature is also not that of the REA and the designation used does not square with the status of the REA so that the "sleeping REA" who "sublets licence" can:
# when he/she needs to disclaim responsibility, allege that the document was not executed by him/her as the signature, the name and the designation were clearly not his/hers - someone without her authority simply misuse her letterhead and registration numbers; or,
# when he/she wants to sue for fees, allege that the document was indeed executed by him/her only that he/she was using another signature, another name and a lower designation - the letterhead and registration numbers which were there would now be used to support his/her case...

Calculated ambivalence is one of the trademark practice of the rogues, the crooks, the money launderer and now the sleeping REAs who sublet their licence too...

Will our Malaysian courts allow calculated ambivalence to have its way when there are specific legal provisions (not to mention common law) requiring the use own signature and name - not other's signature nor other's name nor nickname - to execute formal documents/agreements?

Will our courts allow a professional practice or even a layman not to use his/her own signature or his/her official name in the formal execution of documents/agreements?

Only a test case can provide definitive answers to the questions...

Stay connected to this blog for more on estate agency related issues...

Cheers,

Douglas, GT TANHALIM

Monday, November 19, 2007

An Offence for Any Reg. Estate Agent to...Sublet, Permit...Other Person to Use his Authority to Practise Estate Agency

Other layers of safeguards to public interest that the Malaysian estate agency law provides are through:
1) the imposition of Code of Professional Ethics & Conduct via:
...a) Rules 83 to 110 in Part X of the Valuers, Appraisers & Estate Agents Rules 1986 ("Rules 1986") enacted under sec 32 of the parent Act - the VAE Act 1981;
...b) Standard 5 of the Malaysian Estate Agency Standards 1999 ("MEAS 1999") prescribed under sec 10(g) of the aforesaid parent Act;
...c) Code of Conduct as posted on the official
website
of the Board of Valuers, Appraisers & Estate Agents, Malaysia under the power given in the aforesaid sec 10(g) of the VAE Act 1081;
2) Sec 24 and Sec 30 (of the VAE Act 1981) Offences and Punishments

To prevent conduct of estate agency by any unregistered person on behalf or in the name of "sleeping principal" and/or of any registered real estate agent ("REA") who "sells, transfers, sublets or otherwise permits any other (unregistered) person to use" his/her authority to practise estate agency (an act in contravention of sec 30(i)), the law (Rule 102) insists that the signature, name and registration number of the REA must appear on all documents prepared by him/or her (Rule 110(1)) as well as all documents not of/for administrative purposes (Rule 110(2) & (3)) - the Board has issued Circular (e.g. Cir. 2/97), among others, on what are and what are not administrative documents, for example, all documents on professional fees are not administrative documents - therefore, no one can sign such documents on behalf of the REA.

Rule 110 stipulates that (1)"Every REA shall at all times...observe and perform all his obligations under the VAE Act 1981 and any Rules made thereunder"; and (2)"...comply with every standard, directive, circular guideline and decision of the Board"

Sec 24(d) of the VAE Act 1981 makes it an offence for any REA who contravenes or fails to comply with any provisions of the 1981 Act or any the rules made thereunder including, of course, Rule 110 as stated above...

Now in the real life scenario, how do the REAs "sell, transfer, sublet or otherwise permit any other person to use his authority to practise estate agency" such that the law cannot easily touch them; but when there are fees to be claimed, they can (so they think) easily go to court to claim their fee(s)?


Through the foxy use fronts, veils, fictitious names or nicknames
in what can be described as estate agency practice with calculated ambivalence, these law-breaking REAs think that they can have the best of both worlds: ability to go to court to claim fees and inability of others to convict or sue them - i.e. head they win, tail you lose!

Well, is there really such a perfect loophole for them to exploit?...More on this in my next post...

Cheers,

Douglas, GT TANHALIM

Friday, November 9, 2007

1st Safeguard: Registration of Duly Qualified Persons As Estate Agents

To safeguard public interests against unscrupulous practice of estate agency by unqualified parties and rogues in the 1970s and early 1980s , the Malaysian Parliament enacted a piece of legislation known as the Valuers, Appraisers and Estate Agents Act 1981 (the "VAE Act 1981") which may be considered as the mother of all Malaysian estate agency law.

The enactment introduced a system of registration whereby only duly qualified persons shall thereafter practise as estate agents. The Act took effect from 7 Sept.1984 onwards after the due process in Parliament and a 1-year registration period for those who were practising real estate agency as the principal calling of their vocation then.

After the aforesaid 1-yr registration period, only persons who meet the requirements stipulated in Sec 22A of the VAE Act 1981 shall be entitled for registration as real estate agents and be issued with the authority under Sec 16 to practise real estate agency.

Under Sec 22A, an applicant for such registration must:
1) have attained the age of 21 years
2) be of sound mind
3) be of good character
4) not have been convicted of any offence involving
a) fraud,
b) dishonesty or
c) moral turpitude,
during the 5 years preceding his application
5) not be an undischarged bankrupt
6) satisfies the requirements of qualifications as laid down in Sec 22D
7) have made the required declaration
8) have paid the prescribed fees for registration
9) not be under suspension from estate agency practice nor have his name cancelled from the Register of Estate Agents.

Sec 22D further stipulates that the applicant for registration as estate agent must:
1) be a citizen or permanent resident of Malaysia;
2) have passed the prescribed examinations or their approved equivalents (under Rule 44 as specified in the Sixth Schedule);
3) have been a registered probationary estate agent who has:
a) obtained the required period of Practical Experience under a supervising registered estate agent; and,
b) passed the prescribed Test of Professional Competence or its equivalent

See, how tough it can be to be a registered estate agent in Malaysia. Count yourself lucky if you are served by a registered real estate agent. Why opt to be served by unqualified persons who can "Fly by Night" and never be held accountable when you can be served by a very professional lot.

SAY NO TO UNREGISTERED OR BOGUS AGENTS - YES TO PRACTISING REGISTERED REAL ESTATE AGENTS!

Cheers,

Douglas, GT TANHALIM

P/s: Just as a doctor is not allowed to "loan" his practising "licence" to unqualified persons, the Malaysian estate agency law equally has stipulations against this practice by registered real estate agents in any forms, fronts or veils. What are the stipulations? Wanna know....Well, stay connected for my next post...

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Sunday, November 4, 2007

How Malaysian Estate Agency Law Safeguards Public Interests?

Dear Readers,

In the last post, I mentioned that since the enactment of the VAEA Act 1981 and its subsidiary laws, rules, professional practising standards, practice notes and circulars and the likes, estate agency in Malaysia was no longer a business governed only by normal law of contract or commerce - it has since been additionaly regulated by the aforementioned estate agency law over and above the normal business/contract law.

Its aim was to ensure that the public is served only by duly qualified professional estate agents and by their duly and properly employed assistants known as the Negotiators:
1) Not any Tom, Dick and Harry can practise as a real estate agent (see for examples: Sec 22A, 22C, 23(1)...Rules 102 & 110, the other standards, Circulars and practice notes, );
2) Nor can anyone be simply employed as Negotiators (see for examples: Standard 9 of MEAS 1999, Circulars 11/96 & 1/2000, Circular 2/97, Circulars 11/98 & 12/98, Circular 2/2004...

The Malaysian estate agency law has detailed stipulations to ensure that the public is served only by
1) qualified and practising real estate agents - not the sleeping one(s) who "sublet" or "lease-out" or "loan" their registration/licence to non-registered persons through various means, fronts or veils; AND,
2) Negotiators who are not on loose attachments nor are illegally employed by either the "sleeping principals" or "those who 'loan' licences" from them in blatant contravention of existing estate agency law and stipulations...

What exactly are those stipulations?

Well, we will examine them in detalis in the next few posts...without losing sight of the "big picture" framework.

Stay connected to this blog for more...

Cheers,
Douglas GT Tan

Monday, October 29, 2007

Recovery of Real Estate Agency Fees In Malaysian Courts

Do you know that under Malaysian estate agency law, anyone seeking to enforce a contract to recover in any court any fees, charges or remuneration for any...services rendered as an estate agent would have to meet 2 requirements respectively stipulated in Sec 22C(1)(d) and Sec 23(1) of the Valuers, Appraisers & Estate Agents Act 1981 ("VAEA Act 1981"):

Firstly, Sec 22C(1)(d) requires him to show that "he is a registered estate agent and has been issued with an authority to practise under section 16"

Sec 22C(1)(d) reads :
"No person shall unless he is a registered estate agent and has been issued with an authority to practise under section 16 - be entitled to recover in any court any fees, charges or remuneration for any professional advice or services rendered as an estate agent." and

Secondly, he must also show that "he practises as a sole proprietor..., a partner..., a shareholder or director...or as an employee of such sole proprietorship, partnership or body corporate" - that is, that he is not a freelance registered estate agent practising without a registered estate agency firm.

Sec 23(1) further reads:
"No registered...estate agent shall...have the right to recover in any court any fee, charge or remuneration for any professional advice or services rendered by him pursuant to his practice unless he practises as a sole proprietor of a sole proprietorship, a partner of a partnership, a shareholder or director of a body corporate registered with the Board, or as an employee of such sole proprietorship, partnership or body corporate"

With the enactment of the Valuers, Appraisers & Estate Agency Act 1981 and all its subsidiary rules, professional standards, Circulars of the Board of Valuers, Appraisers & Estate Agent ("BOVAEA"),etc., real estate agency in Malaysia is no longer just a business - regulated only by the normal commercial law of contract.

It is now a profession (also reiterated in Circular 11/96 of the BOVAEA) that is regulated, over and above the normal law of contract or commerce, by specific estate agency law, rules, standards, practice notes and circulars of the Parliament-empowered statutory Board known as the Board of Valuers, Appraisers & Estate Agents (Malaysia)...

Therefore, from the foregoing, it is clear that for any claim of estate agency fee, charge, etc. in any court, apart from having to prove that there was an enforceable agreement, the Claimant would also have to meet the above 2 requirements as laid down by estate agency law!

For your further information, Malaysian estate agency law, in safeguarding public interests, goes as far as to stipulate in details, among others, on:
* "Who may assist the registered estate agent in his practice?" - obviously not just any Tom, Dick and Harry can be as casually employed in a registered estate agency firm as in other non-professional firms; and
* "How should these assistants (known as the Negotiators) be employed by the registered estate agency - in terms of % commission payable, monthly salary, EPF contribution, full-time status, supervision and the likes?"
simply to ensure that the public is served by bona fide registered estate agents or their assistants who can be held accountable and not just anyone on loose attachment or on licence-leasing to a registered estate agency who obviously can easily abscond their responsibilities and, worst still, with the client's money.

Wanna know exactly how Malaysian estate agency law ensures that the public is served only by bona fide registered estate agents and/or their legally-employed assistants known as the Negotiators...and not by operatives on loose attachments or licence-leasing?

Do look out for my next blog post!

Cheers,
Douglas GT Tan

Friday, October 26, 2007

A Registered Estate Agent Shall Not Freelance - Practising Without A Registered Firm Not Allowed!

Dear Readers,

Are you aware that: A person’s legal right to practise estate agency and to recover fees in court(s) (say, under S22(C)(d) of the VAEA Act 1981) is subjected to 2 levels of requirements/registrations:

* Firstly, under S22(C) of the VAEA Act 1981, he must be qualified and is registered under his personal name as a registered real estate agent - with a personal E No. - and issued with an authority to practise real estate agency under Sec 16; and,

* Secondly, under Section 23(1) of the VAE Act 1981 and that of Std 2.2.5 of MEAS 1999, he can only practise estate agency as the sole-proprietor of a sole-proprietorship, partner of a partnership, director of an incorporated real estate agency company; or, as an employee thereof. In other words, freelancing is not allowed - meaning: a registered estate agent is forbidden to practise estate agency without a registered estate agency firm.

More details in the next post...stay connected to this blog always.

Cheers,
Douglas GT Tan

Tuesday, October 23, 2007

Owners of Real Estate, Licensed Auctioneers & Power of Attorney Holders Acting Gratuitously May Market Properties in Malaysia

In my earlier post, I touched on Sec 22C(1) relating to the question of "who may legally "offer for sale or invite offers to purchase" properties in Malaysia?"

Now, you ought also to know that the ensuing Section 22C(2) provides exceptions to this restriction to three(3) categories of people.

Section 22C(2) reads:
"Notwithstanding subsection (1) -
(a) an owner of any land, building and any interest therein may sell or rent, or offer to sell or rent, such land, building and interest;
(b) a licensed auctioneer may sell or offer to sell any land, building...by public auction; and
(c) a holder of a power of attorney in respect of any land, building...acting gratuitously and for no commission, fee, reward or other consideration, may sell, purchase or rent, or offer to sell, purchase or rent, such land, building and interest."


Moot Point: What about an owner of foreign land, building and any interest therein? Is this category also covered or excepted? If so, it means that owners of foreign properties may market them in Malaysia without having to do so through a resident Malaysian registered estate agent.

In my next post, I will blog on the two types of registration involved before a registered estate agent may legally practise real estate agency in Malaysia. I will also show you that a registration under personal name alone does not entitle that registered person to legally practise real estate agency in Malaysia - In other words, freelancing by a registered person without a registered real estate agency firm is not allowed in Malaysia! What does this mean???

STAY CONNECTED for more on real estate agency issues...

Cheers,
Douglas GT Tan

P/s: If you have an opinion, please feel free to share - drinks on me when we meet...;-)

Saturday, October 20, 2007

Who May Legally "Market" Properties As Agent in Malaysia? Who may act as sale agent in Malaysia

Dear Readers,

In this maiden post, let me blog on the issue relating to these questions: Who may legally market properties as an agent in Malaysia? Or, simply, who may act as a real estate sale agent in Malaysia? Can anyone including a foreigner sell real estate in Malaysia? Who can sell foreign properties in Malaysia? Is there absolute freedom for anyone to sell any real estate in Malaysia? Do you need to be a registered estate agent to market or sell properties in Malaysia?...

Now, Sec 22C(1)(ba) of the Valuers, Appraisers & Estate Agents Act 1981 ("VAEA Act 1981") reads:
No person shall unless he is a registered estate agent and has been issued with an authority to practice under section 16…offer for sale or invite offers to purchase any land, building…irrespective of whether such land, building and interest is located within Malaysia or outside Malaysia: Provided that where foreign properties are to be marketed in Malaysia, such offer or invitation shall be made by or through an estate agent practising and residing in Malaysia…”

Now, if the word "market" includes the meaning "offer for sale or invite offers to purchase", then I think Section 22C(1)(ba) of the "VAEA Act 1981" (Act 242) provides a ready answer to the above questions: Who may legally market properties as an agent in Malaysia? Or, simply, who may act as a real estate sale agent in Malaysia?

Section 22C(1)(ba) of the "VAEA Act 1981" stipulates quite clearly that the person - whether local or foreign - who may market properties - again, whether local or foreign - as a sale agent in Malaysia must be "...a registered estate agent...(who)...has been issued with an authority to practice under section 16..." 

Now, you may ask: What if it is a one-off "offer for sale or invite offers to purchase" any land, building...by someone - whether local or foreign - who is not a Malaysian real estate agent? Does that go against the Section and make it an offence under Sec 30(i) of the "VAEA Act 1981"?

If you read Section 22C(1)(ba) again, you will agree that it does not contain the words "habitually", "repeatedly", "regularly" or "as a matter of business practice" i.e. it does not read: "No person shall unless he is a registered estate agent and has been issued with an authority to practice under section 16…"habitually", "repeatedly", "regularly" or "as a matter of business practice", offer for sale or invite offers to purchase any land, building…irrespective of whether such land, building and interest is located within Malaysia or outside Malaysia..."

So, there should be no disagreement that even a one-off "offer for sale or invite offers to purchase" by anyone who is not a registered estate agent is forbidden by Sec 22C(1)(ba) as well - unlike the ensuing subsection (c) (i.e. Sec 22C(1)(c)) where proof of "practice" of estate agency appears to be required: to establish an offence beyond reasonable doubt in a criminal case; or to nullify a contract under Sec 24 of the Contracts Act 1950 (Act 136) on balance of probabilities in any civil case.

Sec 24 of the Contracts Act states that "...Every agreement of which the object or consideration is unlawful is void." Sec 24 of the Contracts Act reads:
"The consideration or object of an agreement is lawful unless -
(a) it is forbidden by a law;
(b) it is of such nature that, if permitted, it would defeat any law;
(c) it is fraudulent;
(d) ...
(e) the court regards it as...opposed to public policy.
In each of the above cases, the consideration or object of an agreement is said to be unlawful. Every agreement of which the object or consideration is unlawful is void
."

There were at least three (3) decided court cases involving non-registered persons suing for payment upon successful introduction of buyers to the defendants: Lim Eng Heng v. Lim Sam Kew & Others [2003] MLJU 47 was decided in favour of the defendant in the High Court; in the Court of Appeal,the decision went in favour of the Plaintiff.

Whereas, Matad Sdn Bhd v. Ng Chee Keong [2005] 1AMR and Teh Eng Peng @ Teh Joo v. Teh Swee Lian [2006] 2 MLJ were both cases decided in favour of the Plaintiffs. Click the hotlink given to read details of one of the cases. As for the other two (2) cases, you can request for faxed copies from me.

In my view, strictly by the wording of the Parliamentary enactment - in Sec 22C(1)(ba) of the VAEA Act 1981- as already explained in the foregoing: If there is evidence on balance of probabilities (in civil cases) or beyond reasonable doubt (in criminal cases) that someone who is not a registered estate agent with an authority to practise (except 3 classes of people - please see my next posts) has "offer for sale or invited offers for purchase" any local or foreign properties in Malaysia, then the said Sec 22C(1)(ba) of the VAEA Act 1981 would, in my view, render even a "one off" real estate marketing sale activity an offence under Sec 30(i) of the VAEA Act 1981; and, render any agreement founded on it (including to pay fee, etc.) void under Sec 24 of the Contract Act 1950.

Any finding to the contrary must only be because Sec 22C(1)(ba) - where even a "one-off" sale activity by a non-registered person is outlawed - was not pleaded or successfully by the defendant and Sec 22C(1)(c) - which requires defendant to prove "estate agency practice on the part of the Plaintiff" was successfully pleaded by the Plaintiff. I believe the outcome of a court case depends not just on what is in the parliamentary act but also what is in the pleading. Agreed? 

Anyway, a moot point for your consideration: Is a one-off "offer for sale or invite offers to purchase" as illegal in our estate agency law as a "one-night-stand" is infidelity in marriage law?

Your views, please.

Cheers,

Douglas GT Tan
Principal/CEO
GT Realty

My Published Articles in Associated Content:
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