Documentary Proof of Legal Standing to Claim Estate Agency Fees in Court

Dear Readers,

Are you aware that: In year 2005, a well-known estate agency firm (with the acronym OR) failed to recover estate agency fee in the court because of failure to fully establish its legal standing to claim the fee. Apparently, it failed to meet the "locus standi" requirement under Sec 23(1) of the Valuers, Appraisers & Estate Agency Act 1981 (VAEA Act 1981): The Claimant adduced to the court a defective certificate of Authority to Practise (ATP) estate agency - his firm's ATP Cert. labelled as Form N when it should have been Form O under the law (Rule 25G of the VAEA Rules 1986)?

You see, since the enactment of the VAEA Act 1981  - and, all its subsidiary rules, etc. - real estate agency in Malaysia was no longer just a business - i.e. no longer a business regulated only by law of commerce/contract; It has since been a profession (pl. see also: statement by BOVAEA in Circular 11/96) - one that is regulated, over and above the normal law of commerce/contract, by specific estate agency law, rules, standards, practice notes and circulars of the Parliament-instituted statutory board - the BOVAEA.

Under the Malaysian estate agency law, anyone seeking to recover in any court any fees, charges or remuneration for any...services rendered as an estate agent - would not only have to prove that there was an enforceable agreement but also to show the court that he meets the two(2) "legal standing" requirements respectively stipulated in 1) Sec 22C(1)(d) & 2) Sec 23(1) of the Valuers Appraisers & Estate Agents Act 1981:

Under Sec 22C(1)(d): The claimant must establish 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."

A registered estate agent with the "locus standi" under Sec 22C(1)(d) would be able to produce to the court his certificate(s) of Authority to Practise (ATP) estate agency under Sec 16 as issued by the BOVAEA, namely: 1) his personal ATP Cert. in Form I (issued under Sec16(1) when he first registered as an estate agent), and; 2) his renewed personal ATP Cert. in Form K (issued under Sec 16 (2) when he renews his ATP annually).

Secondly, under Sec 23(1): He must also show the court that he is not a freelanced registered estate agent - operating from home, five-foot-way, etc. that is, practising without a duly registered estate agency firm - that is that he is a registered estate agent who "... practises as a sole proprietor..., a partner..., a shareholder or director...or as an employee of such sole proprietorship, partnership or body corporate".


Sec 23(1) 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"

A registered estate agent who is not freelancing and who meets the locus standi requirement under Sec 23(1) would certainly be able to produce to the court 1) his Firm's ATP Cert. in Form O (issued by BOVAEA when his agency firm first registered with it); and 2) his Firm's renewed ATP Cert in Form Q (issued annually when his firm renews its ATP).


So, beware: For any claim of estate agency fee, related charges, etc. in any court, the Claimant must prove - apart from having to prove that there was an enforceable agency or co-agency agreement - that the 2 "locus standi" requirements as laid down by Sec 22C(1)(d) & Sec 23(1) of the Valuers Appraisers & Estate Agents Act 1981 are met as well.

All comments are welcome!

A Community-Service Article By,
Douglas GT Tan