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
Sunday, January 27, 2008
Wednesday, January 9, 2008
Non-REAs Not Allowed By Law to Participate for Profit in Real Estate Agency Practice of REAs
Hi Folks,
When the Malaysian Real Estate Agency law sets out to protect the public from being served directly by non-REAs by introducing a system of registration of qualified people as REAs (Registered Estate Agents), the law is equally careful enough to ensure - through its legal provisions - that the public is not served even indirectly by non-REAS through some back-door arrangements.
Among the legal provisions to prevent back-door practice of real estate agency in Malaysia by non-REAs are Rule 91 and Standard 5.2.17.
Rule 91(1) prohibits Participation In the Profits of REA’s Practice by any Non-REA; whilst Rule 91(2) allows payment of a share of his commission not exceeding 40% to a member of his staff - whom Standard 9 termed a Negotiator - who is under his control and supervision to assist an REA in his real estate agency practice.
Rule 91(2): Notwithstanding Rule 91(1), a REA may pay a commission to a member of his staff who is under his control or supervision not more than 40% in aggregate of the fee in the transaction.
Again, to prevent "back-door" practice of estate agency by various illegal means (licence-leasing, sub-letting, etc), Std 5.2.17 unequivocally disallows any unauthorised person to carry on estate agency practice in the REA’s name without the REA’s direct and immediate control or proper supervision.
As it is now, the Malaysian Estate Agency law, as far as my understanding goes, disallows any non-REA from participating for profit in the practice of real estate agency in Malaysia in cohort with any Malaysian REA - non-REAs cannot even take up or subscribe for a minority stake in the equity of any registered estate agency (REA) firm of Malaysia.
Only a Negotiator who is duly employed as per, among others, Standard 9 of the Malaysian Estate Agency Standards 1999 or REA firm which enters into a legally binding co-agency agreement may be paid an agreed share (of not more than 40% for a Negotiator) of the commission earned from any deal assisted by the Negotiator or co-broke with the co-agent.
See, how strict it is the Malaysian Estate Agency law in protecting the public from being served by unqualified parties, "fly-by-night" opportunists, rogues and, in short, illegal real estate agents.
Deal only with Registered Estate Agents of Malaysia and their legally employed Negotiators - say NO to Illegal Estate Agents and Property Marketers in any disguise, forms or veils.
Cheers,
Douglas GT Tan
When the Malaysian Real Estate Agency law sets out to protect the public from being served directly by non-REAs by introducing a system of registration of qualified people as REAs (Registered Estate Agents), the law is equally careful enough to ensure - through its legal provisions - that the public is not served even indirectly by non-REAS through some back-door arrangements.
Among the legal provisions to prevent back-door practice of real estate agency in Malaysia by non-REAs are Rule 91 and Standard 5.2.17.
Rule 91(1) prohibits Participation In the Profits of REA’s Practice by any Non-REA; whilst Rule 91(2) allows payment of a share of his commission not exceeding 40% to a member of his staff - whom Standard 9 termed a Negotiator - who is under his control and supervision to assist an REA in his real estate agency practice.
Rule 91(2): Notwithstanding Rule 91(1), a REA may pay a commission to a member of his staff who is under his control or supervision not more than 40% in aggregate of the fee in the transaction.
Again, to prevent "back-door" practice of estate agency by various illegal means (licence-leasing, sub-letting, etc), Std 5.2.17 unequivocally disallows any unauthorised person to carry on estate agency practice in the REA’s name without the REA’s direct and immediate control or proper supervision.
As it is now, the Malaysian Estate Agency law, as far as my understanding goes, disallows any non-REA from participating for profit in the practice of real estate agency in Malaysia in cohort with any Malaysian REA - non-REAs cannot even take up or subscribe for a minority stake in the equity of any registered estate agency (REA) firm of Malaysia.
Only a Negotiator who is duly employed as per, among others, Standard 9 of the Malaysian Estate Agency Standards 1999 or REA firm which enters into a legally binding co-agency agreement may be paid an agreed share (of not more than 40% for a Negotiator) of the commission earned from any deal assisted by the Negotiator or co-broke with the co-agent.
See, how strict it is the Malaysian Estate Agency law in protecting the public from being served by unqualified parties, "fly-by-night" opportunists, rogues and, in short, illegal real estate agents.
Deal only with Registered Estate Agents of Malaysia and their legally employed Negotiators - say NO to Illegal Estate Agents and Property Marketers in any disguise, forms or veils.
Cheers,
Douglas GT Tan
Tuesday, January 8, 2008
Recognised Qualifications for Registration as Real Estate Agents of Malaysia
Hi Folks,
Happy New Year 2008!
It's time to get cracking: eight days have passed since the new year dawned.
For fellow Malaysians, the early good news was that the Malaysian government was kind enough not to raise fuel prices for the time being (for as long as it could afford, so it was reported in the press).
But one thing for sure, crude oil price has gone past US$100/barrel; families with school going children must have also discovered by now that although the government has kindly waived all school fees and loaned all school children with free text books, families are ironically paying much more education fees than before: the list of PTAs(Parents-Teachers Associations)-imposed miscellaneous fees have gotten longer, causing the total quantum to go up on top of a separate list of "extra-curricular" text books and work books that children must buy (with cheques payable to a certain book store outside); there was also the irony of cooking oil shortage nationwide which the government has acted to resolve.
The average or low-income families, the way I see it, hoped that the authorities would play its watch-dog role for them by auditing (approving or disapproving) all PTA-imposed fees and their accounts, bread-winners of these families must also play their part by working doubly hard (2 jobs even like many in a southern republic) and smart early from the new year... You never know what other prices will go up shortly...
So, it's time to get cracking - the early the better for all families!
That aside, in my first post for this year, I want to give you the link which you can click on to check on the qualifications recognised for registration as estate agents or even valuers of Malaysia - as a follow-up to my post of Nov 9 2007 where I mentioned that "...only persons who meet the requirements stipulated in Secs 22A (& 22D) 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" as the 1st safeguard the Malaysian Estate Agency law provides to protect public interests via a system of registration of duly qualified persons...
I suggest that all who are currently eyeing Malaysian estate agency business, do check your qualification(s) and eligibility out to avoid running foul of the Malaysian real estate agency law!
Visit this blog often to know more.
Cheers,
Douglas GT Tan
P/s:
Visit this Online Gifts Bay to shop for your Valentine's Day Gifts or gifts for any occasions for that someone special!
Happy New Year 2008!
It's time to get cracking: eight days have passed since the new year dawned.
For fellow Malaysians, the early good news was that the Malaysian government was kind enough not to raise fuel prices for the time being (for as long as it could afford, so it was reported in the press).
But one thing for sure, crude oil price has gone past US$100/barrel; families with school going children must have also discovered by now that although the government has kindly waived all school fees and loaned all school children with free text books, families are ironically paying much more education fees than before: the list of PTAs(Parents-Teachers Associations)-imposed miscellaneous fees have gotten longer, causing the total quantum to go up on top of a separate list of "extra-curricular" text books and work books that children must buy (with cheques payable to a certain book store outside); there was also the irony of cooking oil shortage nationwide which the government has acted to resolve.
The average or low-income families, the way I see it, hoped that the authorities would play its watch-dog role for them by auditing (approving or disapproving) all PTA-imposed fees and their accounts, bread-winners of these families must also play their part by working doubly hard (2 jobs even like many in a southern republic) and smart early from the new year... You never know what other prices will go up shortly...
So, it's time to get cracking - the early the better for all families!
That aside, in my first post for this year, I want to give you the link which you can click on to check on the qualifications recognised for registration as estate agents or even valuers of Malaysia - as a follow-up to my post of Nov 9 2007 where I mentioned that "...only persons who meet the requirements stipulated in Secs 22A (& 22D) 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" as the 1st safeguard the Malaysian Estate Agency law provides to protect public interests via a system of registration of duly qualified persons...
I suggest that all who are currently eyeing Malaysian estate agency business, do check your qualification(s) and eligibility out to avoid running foul of the Malaysian real estate agency law!
Visit this blog often to know more.
Cheers,
Douglas GT Tan
P/s:
Visit this Online Gifts Bay to shop for your Valentine's Day Gifts or gifts for any occasions for that someone special!
Subscribe to:
Posts (Atom)
Posts
