Seminar in Real Estate at University of Malaya on 9th Oct 2010 (Sat.)

Dear Readers,

If you are a real estate agent, valuer, developer, property manager, banker, financial planner or whose job has something to do with Malaysian real estate, this upcoming seminar at University Malaya (Petaling Jaya) on 9.10.2010 (Sat) may interest you.

The email which I just received from the organizer reads:

"Dear Sir/Madam

On behalf of the Centre for Studies of Urban & Regional Real Estate (SURE), Department of Estate Management, Faculty of the Built Environment, University of Malaya, we would like to announce that our annual Seminar  in Real Estate entitled “Property Market 3 S’s: Slow, Steady or Stable?" will take place as follows:

Venue: University of Malaya, Kuala Lumpur (Auditorium, Faculty of Built Environment)

Date : 9th October 2010

The seminar is applied for 5 CPD hours from the Board of Valuers, Appraisers and Estate Agents Malaysia.

We  would be very grateful if you could distribute the attached brochure  for the attention of your respected employee/ colleagues.

We thank you for your kind support.

Regards

Dr Sr Rosli Said

(SURE : 03-79677620)"

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The Brochure:

Mr/Mrs/Ms Name : __________________________________________
Organisation : _________________________________________
Designation : __________________________________________
Address : ___________________________________________
__________________________________________
__________________________________________
Postcode: ____________ City: _______________ State: _____________
Tel : __________________________Fax : _________________________
E-mail: _____________________________________________________
 

I/we enclose cheque/bank draft/money order/local order (No._______) of RM ____________being payment for the following:
Registration Fees:
Professional s RM 200.00
Students RM 80.00
 

Payment can be made using crossed cheque, bank draft, money order
or local order to: BENDAHARI UNIVERSITI MALAYA.
 

Mode of Payment Cancellation Policy
No REFUND will be made upon
any cancellation.
 

For Further Information and Registration, please contact:
Seminar Secretariat
Centre for Studies of Urban & Regional Real Estate (SURE)
Department of Estate Management
Faculty of the Built Environment
University of Malaya
 

SURE centre +603 7967 7620
Nor Azlin Mohd Noor +6017 982 0156/norazlin85@gmail.com
Nurarifah Abd Razak +6012 678 7094/ arifah.razak@gmail.com
Siti Fairuz Che Pin +6013 644 4695/fairuzchepin@yahoo.com
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During this programme, the participants will be given Handouts & Certificate 5 CPD hours applied from
BOVAEA
 

Who Should Attend? This seminar is primarily targeted at:
• Academics
• Valuers, Property Managers, Estate Agents, Property Consultants
and other practitioners
• Bankers
• Insurance Agents
• Investors
• Developers
• Government Officials
• Students

Background
The seminar aims to provide an exciting forum for discussing, sharing
experience, and fostering collaboration among participants.
The objective of this seminar is to identify key issues driving the evolution
of Real Estate practice in Malaysia which focuses on global trends
Seminar Objective

• To establish network among real estate researchers and practitioners.
• To bridge the gaps of knowledge between the academia and the
practice.
• To disseminate knowledge within the realm of real estate.
 

Programme
0800—0830 hrs Registration
0830—0845 hrs Opening and welcoming speech by the Dean, Faculty of Built Environment
0845—0930 hrs Plenary 1 : Dr. Sr Rosli Said, University of Malaya
Title : Analysis of the inter-relationship between the housing market and
housing finance system: Evidence from Cointegration and
Causality Tests
0930—1015 hrs Plenary 2 : Dr Sr Rahah Ismail; Department of Valuation and Property Services,
Ministry of Finance
Title : Investment Opportunities in Iskandar Development Region
1015—1045 hrs Tea Break
1045—1130 hrs Plenary 3 : Yg Berhormat Senator Dato’ Sr Abdul Rahim Abd Rahman; Rahim
& Co Chartered Surveyors Sdn Bhd
Title : Impact of Current Government Policy Towards Property Market
1130—1215 hrs Plenary 4 : Sr Kumar Tharmalingham; Hall Chadwick Asia Sdn Bhd
Title : Investment Trends Opportunities in Klang Valley
1215—1300 hrs Plenary 5 : Sr Ho Chin Soon; Ho Chin Soon Research Sdn Bhd
Title : From Slow, Steady and Stable into Swift, Smart & Stylish Real Estate
1300—1415 hrs Lunch
1415—1700hrs Paper Presentation
1415—1445 hrs Mr Bawa Chafe Abdullahi
Title : Nigeria’s Housing Policy and Public-Private Partnership (PPP) Strategy:
Reflection in achieving home ownership for low-income group in Abuja,
Nigeria
1445—1515 hrs Sr Yasmin Mohd Adnan
Title : Tenant’s Preference for Office Occupation Decision Making in the City
Centre of Kuala Lumpur
1515—1545 hrs Madam Roya Shokoohi
Title : Barriers to Primary-aged Children in their Walking to and from School in
Tehran, Iran
1545—1615 hrs Mr Wang Hong Kok
Title : Governing Common Property of Low Cost Flat in Selangor—Issues and
Challenges
1615 hrs Tea Break and Adjourn
**Subject to Change Without Prior Notice"

Be there if you can!

Cheers,

Douglas GT Tan

Blog Publisher

Can A Malaysian Real Estate Agent Act for a Buyer or a Tenant?

Dear Readers,

Have you ever wondered whether in law and in practice: A Malaysian Real Estate Agent can act for a buyer or a tenant of a property?

In my nearly 20 years of experience in the real estate agency trade, the agency firm which I worked for previously as well as my own agency firm had on some occasions acted for the buyers (instead of the Vendors) who were therefore the firm's clients responsible for the payment of the firm's estate agency fees upon successful purchase of their wanted properties. One such case was recorded in my "Record of Experience" submitted, among others, to the Board of Valuers, Appraisers & Estate Agents of Malaysia (the "Lembaga") in my Test of Professional Competence before qualifying for registration as a Malaysian Real Estate Agent by the Lembaga.

And, in August/Sept this year (2010) too, I have also successfully acted for a Tenant who wanted me to find a replacement tenant to take over the remainder term of his tenancy. This Tenant (not the Landlady) became my client and paid me my fee when the replacement tenancy was approved and accepted by the Landlady.

So, while it is the common practice in Malaysia for the REA to act for the Vendor (or the Landlord, as the case may be) as the REA's client, under our Malaysian estate agency law, a Malaysian REA may act for the Buyer (or the Tenant/Lessee) of a property instead of the Vendor (or the Landlord/Lessor). Under our estate agency law, "Estate Agency Practice" (vide: Definitions Chapter of the MEAS) means:
"acting or holding oneself out to the public or to private individuals or firms as ready to act in whatever manner (including the act of referring or introducing the availability of land (as defined in the National Land Code) for sale or rental discreetly or otherwise), for a commission, fee, reward or any other consideration in respect of the sale or other disposal of land and buildings and of any interest therein or the purchase or other acquisition of land and buildings and of any interest therein or in respect of the letting or renting of land and buildings and of any interest therein"

In the preceding paragraph, I used the words "instead of the Vendor (or the Landlord/Lessor)" because a Malaysian real estate agent cannot act for more than 1 party to the same estate agency transaction as stipulated in Rule 89(2) of the "Valuers, Appraisers & Estate Agents" Rules 1986 (the "VAEA" Rules) which reads:
"A registered estate agent shall not charge or attempt to charge fees on more than one party in any one transaction...".

The party that the REA can charge fee is the REA's "client" or "principal" under our estate agency law and professional practice.

Rule 89(2) means that if the Buyer (or the Tenant) is already the client or principal of the REA (who is therefore responsible for the payment of the REA's fees), the REA CANNOT also collect or attempt to collect fees from any other parties to the same transaction including the Vendor (the Landlord or the agent acting for them, whichever is relevant).

Collecting or attempting to collect fees from more than 1 party to a real estate agency transaction is illegal under our Malaysian estate agency law (i.e. contrary to Rule 89(2) of VAEA Rules) and, I believe, against the Malaysian "agency law" in general as well.

So, to the question "Can Malaysian Real Estate Agent act for a Buyer or a Tenant?", I would say: "Yes, both in practice and in law, a Malaysian Real Estate Agent can act for a buyer or a tenant".

Some expat customers of mine in fact told me that back in their countries, the normal practice is for the Buyer or the Tenant to pay agency fees to the agents. So, they were pleasantly surprised when in Malaysia, they didn't have to pay agents' fees and yet could hitch multiple free rides to view properties until their wanted ones were found!

I have therefore urged in my "Record of Experience" that more Malaysian REAs should act for their expat Buyers or Tenants/Lessee (who in their home countries commonly pay fees to agents as the agents' clients) while other REAs act for the Vendors or the Landlords/Lessors so as to generate more incomes and tax revenue all round for the Malaysian REAs and our country.

All views and comments are welcome.

Cheers,
Douglas GT Tan
Publisher of
http://PropertyMarketingMsia.blogspot.com

Asking Real Estate Agents for "Kickbacks" - How Best to Deal With This?

Dear Readers,

1) From time to time, in the practice of real estate agency, a real estate agent might encounter prospective buyer or tenant who asked for "kickbacks" if he or his firm were to successfully buy or rent the property through the real estate agent's firm. And, if you don't agree to this, he or his firm would buy or rent through another estate agent who agreed to give him the "kickbacks" often innocently termed as "referral or introduction fees" for as much as 30% to even 70% of the fee!

2) Rejection of such "attempts at kickbacks" would have been easy and swift with no regret whatsoever if the intention (for "kickbacks") was made known right from the very beginning before any efforts was put into the case. But most often then not, it is only after the estate agents have put in much work, time and expenses with closure of the deals in sight that these people would start asking for the "referral fee" which if you don't agree, the un-mistaken tacit or expressed message is that: the case would be taken over by another agent who would be more than willing to give the "referral fee" as much of the works have already been done by the abandoned agent.

3) Thus, outright rejection of the requests for kickbacks is never easy and swift if the agents have already spent much time and efforts (what more, money?) to bring the deal to the threshold of closure. Do you agree?

4) So, dear readers: Tell me, what would you do if you were a professional real estate agent in that kind of situation where an outright "no" to the signing of a written undertaking to pay the "referral or introduction fee" would have meant all your time, efforts and money going down the drain? Is there an intelligent way out? Does the law (say, Sections 10 & 24 of the Contract Act 1950) offer a legal way out of this? What if, instead of going to Court, they decide to use "Debt Collectors" with underworld link to collect their "referral fees"?

5) Your comments on the above issue are most welcome. To start the ball rolling, I share herewith my views in "good faith":

1. I DO NOT think it is an intelligent response to give an outright "no" if and when you have already put in much time, efforts and expenses. Reasonably, in that kind of situation, your "no" should be expressed differently: For example, if you are given the chance to draft the written undertaking, then draft it in such a way that they cannot enforce it in law, say, use terms which do not mean that you have to pay outright - say, instead of using the word "pay", use the word "re-imburse" because re-imbursement, as far as I know, requires proof or evidence of approved expenditure of the sum to be re-imbursed. Or, if the draft undertaking comes from them, then sign it with some amendments, whenever possible, because "qualified acceptance is no acceptance" - a well-established contractual principle as codified in Sec 7 of the Contracts Act 1950 ("Act 136");
2. Worse comes to worst, particularly after you have taken a cut in your professional fee in order to persuade the Owner to accept their low offer and yet after your sacrifice, they ask you for substantial "referral fee" in written undertaking, then go to Court with them: Persuade the Court that the undertaking is void under Sections 10 & 24 of the Contracts Act 1950 as it has the illegal object of collecting "kickbacks", which should be obvious if the intended recipient of the "referral fee" is the buyer or tenant himself or a party closely related to them (e.g. spouse, brother, partner, director, share-holder, etc);
3. If instead of going to Court, they go to "Debt Collectors", then I think at the first harassment by the Debt Collector, you should get in touch with the Police for advice or at least let the Police who to look for if something were to happen to you. Giving in to the harassments by the corrupts, in my view, should never be a professional response. Let's give the corrupts a good fight!

6) Can we have more views on this issue from our readers particularly if you are professional registered estate agents. Perhaps, a MACC officer should be invited to give inputs to enlighten us all on the best ways to handle such situations.

Cheers,
Douglas GT Tan
Moderator.

Successful Co-Agency on 4-Storey PJ SS2 Shop-Office for a Budget Hotel

Dear Readers,

(PJ: Updated - 14.9.2010) If all go well, PJ SS2 will soon have its first "Budget Hotel" run by a budget hotel chain which focuses on making customers feel like being at home: Thus the name - My Home Hotel.

This "PJ SS2 Budget Hotel" will be located neighbouring Island Cafe (along Jalan SS2/61, Petaling Jaya - beside Magnum). The hotel chain currently has branches in Setapak (1 & 2), Kuchai Lama, Shah Alam, Kota Damansara, Gua Musang...(click here to know more).

PJ SS2 Budget Hotel story started this way: I hung a banner on the external wall beneath my office to source for a tenant for the office space below my firm vacated by a law firm which was previously there for more than 5 years. After getting a Tenant but before the banner was taken down, a Mr. Raymond of the budget hotel called to ask if the whole block was available for rental; I told him "no" but asked him whether PJ SS2 would be okay. Well, he said that would be ideal.

That same day, called Mdm May of 4-storey SS2 shop-office beside Maybank. She said the bank (I am not saying which bank) had approached. So, she would wait for the bank; then called a Ms. Florence of Xxxstrong who hung a banner at where "Deva's Bridal" was previously at (No. 191); for 3 days, no reply on whether Owner would accept a Budget Hotel tenant; then, called Terrence of Xxvine Realtors who also hung a banner at the former Deva's Bridal - Terrence was quick; by noon the next day (Monday - 16.8.2010), co-agency letter for the viewing of "Deva's Bridal" have been signed with Xxvine Realtors. But Terrence only managed to show the 4-storey shop-office neighbouring Island Cafe to me and my prospects' (Mr. Raymond & associates); A formal offer with a conditional earnest money of RM15,000.00 was made to the Owner via my realty immediately after the viewing...

After nearly 10 days of negotiations over the finer terms of tenancy including sessions that stretched beyond mid-night and beyond lunch-time with each passing day offering no certainty of a deal, a 3+3+3 years tenancy agreement was finally finalised and ready for signing in the evening of 26.8.2010 on 1.5 hours' notice. Terrence couldn't made it for this occasion (car "broke-down"). Rent-free renovation period has started since 1.9.2010. We wish both the Landlord and the Tenant the best of tenancy relationship and business. 

Anyway, on 4.9.2010 the co-agency fee was ready for Xxvine Realtor's collection and on 8.9.2010, Terrence collected the same for his firm although there was no co-agency agreement signed for this property. We believe we did the right thing because he did open up the property for me and my prospects' viewing - it's not a case of after the signing the co-agency letter, no joint-viewing nor introduction of prospects happens.

Presently, if you are looking to rent PJ SS2 properties, my agency has the following HOT listings:

• 9,268 sf (whole 1st floor with lift) at RM3.90 psf (RM36,000pm) for F&B, restaurant, etc.;
• 4-Storey Shop-Office (Maybank row) at RM15,500 pm;
• Whole Ground Floor (Jln SS2/72) at RM4,200pm (must be clean business - no car workshop, no restaurant, no business that can dirty the place, office or retail of clean products okay with Owner);
• Upper Floors (22x75sf) from RM1,200pm onwards in the heart of SS2.

We are currently also looking for more whole block (3-storey or 4-storey) buildings in PJ SS2 for viewings by a prospect in TCM wellness business - Prospect would be back from China very soon.

I take this opportunity to wish all Muslim friends:
Selamat Hari Raya Aidilfitri!

Best regards,
Douglas GT Tan (E1579)


H/p: 012-288 6993 (Douglas)/ Tel: 03-7958 8821
Fax: 03-7958 7821
Blog: http://PropertyMarketingMsia.blogspot.com