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.