Registered Estate Agency Is Required By Law To Have Adequate Professional Indemnity Cover

Hi Folks,

Do you know that Malaysian Estate Agency law further protects you by requiring every registered estate agency firm - please see: Standard 2.2.13 - to have adequate professional indemnity cover?

You are only protected if and when you use the services of registered estate agents. Just like when you use a taxi, you are only protected by insurance if you use a legal taxi with mandatory insurance cover. Never use a bogus taxi or a bogus agent - for this obvious reason!

The real estate agent's professional indeminity insurance cover is against any claim for breach of professional duty which may be against the registered estate agent and/or their employees and Agents by reason of any Negligent Act, Error or Omission including the costs and expenses incurred in the defence or settlement of any claim.

The minimum cover is RM100,000.00. For a cover of RM250,000.00 for gross fees up to RM5,000,000.00, the insurance premium paid by the agency was more than RM1000 per annum. This amount just to protect you the consumers of professional services!

So, why use a bogus agent or its loosely-attached operatives who can all easily 'fly by night' with your money when you should use legal real estate agents and/or their employees or Agents whose details are all submitted to the relevant statutory Board (i.e. Board of VAEA) for its record and whose insurers are there to indemnify you against the risks mentioned?

Professional Indemnity Cover is therefore yet another reason why the Public should avoid the bogus agents or their 'gung-hoo' operatives.

It is Always Wiser to Use Services of Legal & Registered Estate Agents!

Cheers,
Douglas GT Tanhalim