Co-Agency Dispute: P v. D (Part 2)
(Continuing from Part 1)......M's boss, P, appeared for the first time in a letter dated 3.7.2006 with her official name and the designation "Principal" (Exhibit P20, Pg. 33 of Bundle C). In that letter, P referred to P firm's letter dated 3.1.2005 which was signed with the name Sharon DM and not P's official name; with the designation "Resident Manager" (and not "Principal") and a different signature as "our" letter and not "my" letter.
In that letter, P referred to 3 other documents dated 31.1.2005, 4.2.2005 and 15.2.2005 allegedly as evidence that there was a co-agency agreement on or around 4.1.2005 on the 2 parcels of lands for sale by tender at Jln Page, Ukay Heights (which P termed "Hartanah-hartanah tersebut" and defined in Para 2.2 of her Statement of Claims and in A15 of her Witness Statement).
Interestingly, D in his W.Statement and testimony claims: that the 3 documents in fact do not show that there was a co-agency agreement on or around 4.1.2005 as claimed by P in Para 3 of her Statement of Claim and in A15 to A20 of her W. Statement. Instead, they prove otherwise:
1) That the first document dated 31.1.2005 shows in its first line (Para 1) that M enquired about the 2 parcels of lands for sale by tender only towards 31.1.2005 - so, how could there be an agreement on or around 4.1.2005 even before an enquiry on the 2 properties was made by M?
2) That there were two copies of the 2nd document dated 4.2.2005 adduced by P: The first copy, adduced during the 1st bundling of documents in Jan 2009, show that the draft of D firm's co-agency letter was seen and approved by M's resident manager Sharon DM on or shortly after 4.2.2005 -- it carries only Sharon DM's signature and not D's signature; and the second copy, adduced just 1 working day before the trial started, was the original copy of D firm's co-agency letter which has the signatures of D and that of P firm's resident manager (Sharon DM) together with the particulars Y inserted in hand-writing without any acknowledgment of the inserted particulars nor acknowledgment of receipt of this document by D.
That the 2nd documents both show that negotiation for a co-agency agreement on the 2 properties for sale by tender only started on or shortly after 4.2.2005 - So how could there be a co-agency agreement one month earlier on or around 4.1.2005 even before negotiation started on or shortly after 4.2.2005? If there was already a co-agency agreement on the two properties on or around 4.1.2005, would there be any need for another co-agency agreement on or around 4.2.2005? Doesn't the existence of the 2nd documents mean that even if the co-agency document dated on or around 4.1.2005 was indeed about the 2 properties (which D denies it was about the 2 properties), its terms were not finalised - otherwise why the need for another agreement dated 4.2.2005 to replace or amend it? In either case, doesn't S30 and/or S63 of the Contracts Act respectively operate to nullify it?
3) The third document shows that as at 15.2.2005 - i.e with just 3 days to go before the tender closed, M still had not introduced Y to D; and M still had not viewed the two lands with D and Y. Clearly, the three documents in fact did not show that there was a co-agency contract on or around 4.1.2005 contrary to P's claim - they in fact prove otherwise! P had frivolously and vexatiously based her suit on an irrelevant document dated on or around 4.1.2005 as the written co-agency contract in Para 3 of her Statement of Claim.
P's letter dated 3.7.2005 was acknowledged receipt by D on 7.7.2006.
On 11.7.2006 - 4 days after receiving P's one and only one letter, D wrote a reply detailing point-by-point in a-matter-of-fact manner why based on the co-agency letter dated 4.2.2005, D would not be paying 50% of his agency fee as co-broking fee to P's firm. The co-agency letter dated 3.1.2005 from P's firm signed by its resident manager Sharon DM was ignored by D because D knew, as explained earlier, it has absolutely nothing to do with the 2 parcels of lands for sale by tender - it was about another bungalow land, put up for sale by private treaty by another agency for its owner who bought it in 8th Danaharta Open Tender in year 2003 and this bungalow land is located along Jalan Page, Ukay Heights and is adjacent to the 2 pieces bungalow lands for sale by tender as described in Para 2.2 of P's Statement of Claim and in A15 of P's W. Statement.
In D's reply dated 11.7.2005, D claimed, among others, that the co-agency letter dated 4.2.2005 (a professional document under Circular 2/97) was invalid & void as a contract because it was signed by someone with no competence to do so (S10 & S11 of the Contracts Act) - Sharon DM was not a registered estate agent (Rule 102 of the Valuers, Appraisers & Estate Agents Rule). D enclosed the relevant circulars of the Lembaga to substantiate D's reasons and also pointed out to P that the Invoice enclosed by P (in her letter dated 3.7.2006) contains illegalities on its face as the invoice designates M who was not a registered agent as M firm's "Agent" when the law (S22(C)(1) of the VAEA Act) clealy disallows this; and the invoice, being a document on fee (Rule 102 & Circular 2/97), must carry a REA's signature but it did not.
(Note: Despite this, P in pleadings has the audacity to claim in Para 6 of her "Jawapan" to D's "Pernyataan Pembelaan" that "D at all material times had knowledge that M was a representative/agent of P". Isn't this frivolous and vexatious to the core because the fact is: D had clearly objected to M being labelled as "Our Agent" meaning "P firm's agent" in the first invoice and that resulted in P's lawyer CWC sending a second invoice without M being so designated! And, Rule 102(3) of the VAEA Rules clearly disallows M who is not a registered estate agent to represent a registered agency/agent. At most, M could only act as an assistant of P known as a Negotiator. But no where in P's pleading did P plead that M was her legally employed Negotiator because she knew that if she were to plead that, D would have challenged P to prove that M was her lawful Negotiators which M was not because M told D that she did not receive any salary, EPF or Socso contributions from P's firm but her commission share was much higher than the 40% maximum allowed by our estate agency law. D's lawyer would have cross-examined M on M's status as a legal Negotiator of P's firm had P pleaded that M was at all material times her lawful Negotiator because D did prepare and hand over a long list of questions to D's lawyer to cross-examine M on her legal status as a Negotiator.
The same P acted during sworn testimony as if she could not read figures - thousand read as million - when her job is a real estate agent who regularly deals with figures! This happened after P's lawyer sought D lawyer's consent, before the trial started, to amend the erroneous figures of claims on the ground of typo error in P's Statement of Claim and the Summons (which error D had noted and pointed out in D's "Notis Kehadiran" way back in March 2007) - identical typo errors in 4 different places! Anyway, D allowed D's lawyer not to object because D does not want the case to be delayed by petty issues.)
In the same reply (a marked exhibit at Pg. 40, Bundle C), D also mentioned that there were misrepresentation in P's letter dated 3.7.2005 of what actually happened: P had in her letter pretended no knowledge that D had received agency fee from its client in mid-2005 when in fact D had informed M about this and was considering "equal sharing of service tax risk" as a possible way out to settle issues arising from P firm's real estate agency practice which was materially not in compliance with the law (please see: Part 1 of this post).
P did not reply to D's reply dated 11.7.2006. P also did not immediately claim that Sharon DM was also P.
On 3.11.2006, D received a letter of demand from a law firm CWC claiming to act for P's firm and demanded payment of 50% of D's agency fee for the successful sale by tender of the 2 parcels of lands. CWC enclosed another invoice - this time no longer designating M as "Our Agent"; and, this time, the invoice carried P's name and signature. CWC's letter of demand also did not categorically state that Sharon DM is also P; the designation of "Resident Manager" is also referring to the Principal; nor, that when P signs as a "Resident Manager", P always signs with another signature.
On 13.11.2006, D wrote, again on his own and without any legal advice, a reply to P's lawyer CWC saying, among others, that D's letter dated 11.7.2006 to P has clearly and fully set out the reasons why payment of 50% of the fee...has not been paid to P's firm and a full photo-stated set of D's letter dated 11.7.2006 to P was attached in D's reply to CWC. No further response or reply from P or CWC until March 2007.
In March 2007, P filed through CWC a Summons and a Statement of Claim against D.
On 28.3.2007, (again, on his own and without engaging any lawyer) D filed a "Notis Kehadiran" in which D said (in translation):
" I dispute P's claim because, firstly, the written agreement (please see: Para 3 of P's Statement of Claim) on which P's claim is based is null and void and unenforceable in law; secondly, the Statement of Claim contains inaccurate facts and figure of claim; and thirdly, on reasons which I have stated to P and P's lawyer and on reasons which will be stated."
Stay tuned for Part 3...to know more about the dispute.
Wednesday, February 23, 2011
Tuesday, February 22, 2011
Co-Agency Dispute: P v. D
In late 2004, D (a registered estate agent) advertised in the Star some bungalow lands for sale at Ukay Heights, Ampang. M saw the adverts and called D. When M found out that D's bungalow lands were not along Jln Page, M asked D whether he had any along Jalan Page for sale.
D told M that he knew of another agent having a piece for sale there. [D had met this agent when he did a planning permission land search at DBKL towards the end of 2004 - DBKL's visitors log-book should be able to confirm this. This agent, a Mr. Wong - the principal of a real estate agency based in Sri Petaling (now moved to Shah Alam) had told D during the encounter in DBKL that he was selling, among others, a piece of bungalow land at Jalan Page, Ukay Heights for its owner who successfully bought it in the 8th Danaharta tender in 2003.] However, as bungalow land in Jalan Page was very sellable, M was told that the Mr Wong was unlikely to do a 3 agencies co-broking where his fee would be shared equally by 3 agencies. D suggested to M to persuade M's buyer to pay agency fee to M's firm and share 50% with D's firm so that Mr. Wong would be more willing to make available his Jln Page land listing for co-broking.
M said no problem because the prospective buyer was a childhood friend of her husband provided the land was suitable.
Soon after that, on 3.1.2005, D's firm received a co-broking letter from M's firm signed by a resident manager Sharon DM saying "our client is interested in the ... property and would like to view the said property. We would appreciate if you could make the necessary arrangement for viewing..." (Facts found out later: Sharon DM was not a name registered in the Lembaga's register of estate agent and was also not M's boss official name, P.)
At that time, D thought Sharon DM was a REA employed by M's firm to be its resident manager. D signed acceptance with his official name the next day but added and initialed an amendment to M firm's original co-broking proposal because D wanted to make sure that any co-broking fee paid by M's firm to D's firm would not be subjected to any condition for refund and so on. The qualified acceptance was faxed back to M's firm on 4.1.2005. Thereafter, D never heard anything from M again about the proposed fee-sharing and viewing.
Towards end of Jan. 2005, a lady who identified herself also as M called. This time, she called and enquired about 2 pieces of bungalow lands at Jalan Page, Ukay Height put up for sale by tender in the paper by D. D had, on or shortly after 10.1.2005, received a circular from his client to all panel agents (including D) informing them about 82 properties being put on sale by tender from 10.1.2005 to 5pm, 17.2.2005 including 2 adjoining pieces of bungalow lands at Jalan Page, Ukay Heights. These 2 adjoining pieces are adjacent to the earlier piece that Mr. Wong had for sale by private treaty.
A few days later in early Feb. 2005, M called D again. This time she told D that she was the same person who called D the other time on the private treaty land at Jln Page and that she didn't call back because her buyer found the land too small for development. She asked if she could co-broke on the 2 adjoining pieces at Jalan Page now for sale by tender and if so, requested that a draft of D's co-agency letter be faxed over to her firm.
On 4.2.2005, D faxed it over together with summary of the tendering process, etc.
Shortly thereafter, M faxed back D's co-agency letter to D's firm with M's resident manager Sharon DM's signature on it and told D that her manager had no problem with D firm's draft. She requested that D signed an original copy of the co-agency letter together with as much information as possible on the 2 lands at Jalan Page for her prospect's evaluation and if found suitable she would arrange for joint-inspection of the 2 lands during which her prospect would be introduced to D and D would have to acknowledge the introduction by counter-signing on the name and particulars of the prospect to be filled into the relevant blank space in the co-agency letter.
However, right until the tender closed, M did not introduce any prospective bidder to D; M did not carry-out any Standard 3.2.8 co-agency joint-inspection with D and M did not secure for D any tender submission from any party.
Parallel to all these: In early Feb 2005, a Gary who identified himself as a banker also called D saying that a Mr Y who is his childhood friend was interested in the 2 lands at Jalan Page for sale by tender and asked if he could meet up with D for more info. Gary met D in his office then at Desa Sri Hartamas and gave D his business card as well as the tel.-cum-fax no.of his Mom's florist shop so that if D need to fax him anything during off-office hours, he could do so. There were many tele-conversations with Gary on the 2 lands thereafter as D's phone bills clearly show.
Then, Gary told D that his childhood friend Y was interested and asked if D could buy the tender packages. After D bought the tender packages, Gary met D in D's office again and collected the 2 original tender packages. Thereafter, Gary and D exchanged more tel conversations.
At night, on the eve of the tender closing date, Gary confirmed in a telephone conversation with D that Y would be tendering for the 2 parcels of lands and asked for advice. Advice was given.
The next morning, Gary left message for D to call back for more advice on how to fill up the tender form etc. In the afternoon, Gary deposited Y's tender submission into the tender box as his office was nearby. Then, in the same afternoon, he faxed the whole photo-stated set of Y's tender submission together with a cover note to D. The cover note says nothing, yes absolutely nothing, about M, M's firm, M's resident manager Sharon DM or M's boss P. Right until the tender closed, D thought Gary was the financier of Mr. Y who is his childhood friend, doing a favour for Y who was busy.
However, soon after the tender closed, M called D to say that Gary was her husband. This was highly unusual and D asked M: Why couldn't M or Gary said so earlier or before the tender closed? M giggled that it was to avoid paying for the costs of tender packages (D took this to mean that if Gary had said he was acting for M or M's firm, M's firm would be asked by D's firm to pay fully for the 2 tender packages. M's firm would only get a 50% re-imbursement upon passing back the tender submission form duly completed by their prospect. Since there was no certainty that Y would submit a tender or be successful in his tender, M's firm decided that it was best not to reveal that Gary was doing this for M or M's firm until the tender closed. Hmmmm.)
Mr. Y did submit the tender and was successful in the tender. Upon learning that, M started to make statements about 50% of D's agency fee. D realised he had issues on hand to settle.
In mid-2005, D told M that he had received his fee and service tax would like to meet up with the principal of M's firm, P. D wanted to probe the many irregularities and illegalities in M's way of estate agency practice - e.g. the name of the signatory for M's firm is not a name found in the Lembaga's register of estate agents, no actual introduction of any prospective buyer by M or M's firm, no Standard 3.2.8 co-agency joint-inspection of properties, no obtainment of any tender submission by M's firm for D firm's submission to D's client, etc.
If such a practice was due to honest ignorance of law and M's firm was apologetic and willing to undertake 50% of the service tax risk arising then (as the service tax received then were about to be released to Custom in July 2005), D was willing to enter into a fresh fee-sharing agreement supported by service tax-risk sharing as "quid pro quo" on "without prejudice" basis. But if M's boss, P, was found to be leasing her "licence" to M and/or others to illicitly practise estate agency using the nickname Sharon DM as a cover, D would not pay M's firm a single sen.
M could not arrange for the meeting despite repeated requests from D and finally explained that M's principal P was a sleeping principal with some kind of arrangement with her resident managers. D then told M that in that case, there won't be any fee payable to M's firm. But M told D not to forget that M still had the original of the co-agency letter signed by D dated 4.2.2005 and she could easily filled in the details of the bidder and use it to claim for 50% of D's fee. D told M that this would be a fraud. M giggled and said fraud is hard to prove.
Because P never came forward to meet D, D thought M was possibly an imposter illegally using P firm's letterhead, P firm's E-number and P's personal E-number to illegally practise real estate agency. But P may very well be knowingly "leasing her REA licence" to M and others and did not want to be seen as doing so. "Owning up" as the principal at that time would also mean having to shoulder 50% service tax risk.
About 1 year later, immediately after the private caveat had been removed and the agency fee and service tax would no longer be subjected to recall by D's client, P (M's boss) suddenly wrote a letter, for the first time using P's official name, her designation as Principal and a different signature (before this, the signatory for M's firm always uses the name Sharon DM, the designation of "Resident Manager" instead of any designation more befitting the boss such as Principal, Proprietor, CEO, etc. and a different signature) claiming for 50% of D's agency fee.
In her letter, P pretended that she had not been told about agency fee having been received by D in mid-2005. But the wordings of P's letter gave her lie away because in the same letter P claimed that D had raised service tax issue with P's operative M. How could D have raised service tax issue with M if the service tax and the agency fee had not been received by D? More so, Gary (whom M subsequently claimed was her husband) had told D before that he had a close friend by the name of Michele working in the office of D's client. So, how could M and P not have known or not have been told that D had received his fee and service tax from his client in mid-2005 before P wrote her letter in July 2006 to D?
P was feigning ignorance of D having informed them (M and P) of the receipt of the agency fee and the service tax to make D appeared as dishonestly withholding information about receipt of the fee in mid-2005 from them. P needed to lie to cover up the fact that she was the one who was hiding for nearly a year to avoid shouldering any service tax risk (possibly breaching a fundamental implied term in any co-agency contract whether by words or by conduct - equal share of risks (and costs) for equal share of fees); and when all risks and potential costs disappeared after the private caveat had been removed, she suddenly appeared and feigned ignorance that the agency fee had been paid to D by D's client in mid-2005.
M went on to lie even further by testifying that M went to meet D's client (which wound down on 31.12.2005) and was told 1) that D had received the fee after the signing of the SPA (true - D already told them this) and 2) that agency fees were invariably paid by D's client after SPAs were signed (false -
No professional staff of D's client could have told M that agency fees were invariably paid by D's client after SPAs were signed because all panel agents who had closed deals for D's client could easily vouch that agency fees from D's client were not invariably paid after the signing of SPA. In fact, in another much bigger deal that D closed for the same client, the agency fee was paid many months after the signing of SPA - i.e paid only after the private caveat was removed; and in another deal transacted by D for D's client involving sale of a 2-storey terrace house in Subang Jaya, the agency fee was never paid even more than a year after the signing of the SPA because the condition precedent (delivery of vacant possession) was never fulfilled -- eventually, the successful bidder who had signed the SPA rescinded the deal and there goes also the fees).
M was cooking up false story about being told by a staff of D's client that agency fee is always paid shortly after the signing of the SPA! M was lying about her meeting with D's client because neither D's client and its successor ("Pkhas") had even once formally or informally informed or notified D about any such meeting nor asked D for any explanation. If M had indeed met D's client before it wound down on 31.12.2005, then M's boss, P, could not have in her letter in July 2006 (Exhibit P20 dated 3.7.2006 at Pg.33 of Bundle C) to D, still claimed no knowledge of the agency fee having been paid to D by D's client in mid-2005. If D's client had already informed M that agency fee had been paid to D in mid-2005, why then was P still claiming or pretending no knowledge of this in her July 2006 letter to D? Both P and M were contradicting each other because they were lying.
D knows for a fact that D's client is a highly professional body manned by highly competent and respectable staff many of whom have now become respectable corporate leaders. M was obviously doing a 'hit and run' lying act: P's lawyer only forwarded M's Witness Statement including about that meeting with D's client in the very same morning before M testified. D had no prior sufficient chance to expose M's lie because, in the same morning, D was re-examined by D's lawyer on this alleged meeting although the instruction from the learned and honourable judge was for the W. Statements to be exchanged 1 week before the trial was to be resumed on 17.12.2010. D forwarded his on 17.12.2010 and M's W.Statement was only forwarded on 18.2.2011 - the same morning that M testified and D was re-examined. On 18.2.2011, D saw for the first time (for just a few seconds), additional bundles of documents (Bundles H & I) filed by P.
P even managed to get an administrative bureaucrat MH to testify in the same morning:
1) that a letter dated 17.12.2010 bearing a statutory board's letterhead was indeed written by her in reply to P lawyer's letter dated one day earlier i.e. 16.12.2010 [in that letter she wrote that P was a registered estate agent practising under a certain E number for a certain period of time mentioned therein and that P is also known as Sharon DM in her estate agency practice] But, on cross-examination by D's lawyer, the same bureaucrat MH also confirmed that she had indeed in 2007 officially informed D's lawyer that Sharon DM was not a registered person (at all all material times mentioned in D lawyer's letter) and that if any member of public were to search the Lembaga's website that day (18.2.2011), the outcome of their searches would still be that Sharon DM was not a registered estate agent. So, what could have caused MH to say 1 thing in 2007 and then say a completely different thing in her letter 17.12.2010? MH and P being of the same colour or was it something else - 'lubricant' that causes the change?
2) that the 2 circulars (Circulars 2/2004 & 2/2006) issued by her (for the executive council of Lembaga, with the words "would require" which practitioners took them to be directives from the Lembaga to be complied with under Rule 110 of the Valuers, Appraisers & Estate Agents Rules 1986 ("VAEA Rules")) were merely circulars "to encourage" the practitioners to do the things mentioned in the circulars - What a joke! No wonder this perception: that in this profession, those who follow the law die one by one; while those who dare to defy it, 'make friend' with the right party, grow and prosper! Anyway, the material circular in this dispute is Circular 2/97 and not Circulars 2/2004 & 2/2006 - Doesn't Circular 2/97 have the force of law to be complied with under Rule 110? Wasn't P using irrelevant circulars to confuse the judge?
3) that professional real estate agency documents signed using unofficial name such as Sharon DM (which D and members of public could not trace and link officially to P whether by official searches with the Lembaga or with IC Section of the National Registration Department) are usually recognised as valid. This, coming from a party who is to govern the profession according to the law is absurd and shocking!
It is D's view that the interpretation by the bureaucrat MH goes against the intention of our Parliament in introducing a system of compulsory registration of estate agents and the introduction of Rule 102 (of VAEA Rules 1986) and Circular 2/97 to ensure that only duly registered estate agents can practise estate agency and sign professional documents related thereto. But the bureaucrat is openly testifying and opining in court that even a nickname can be used for signing agency contract! Congratulations to all those with propensity to 'lease' their 'real estate licences'!
Imagine, all registered estate agents signing professional estate agency documents using not their registered official names but their unregistered nick names which any search with the Lembaga would not link the nick names to their official names and any search with the IC Section of the NRD also could not link the nick names to the REAs. If their loosely-attached operatives abscond with client's or customer's money, how is the member of public to hold the REA concerned responsible? If their operatives commit the civil wrongs of, say, trespass or misrepresentation, how is the aggrieved party capable of suing the REAs concerned?
Would the REA concerned then willingly claim that the nick name is also hers and that she is also practising using the nick name? Why is a professional practising her profession in such a crooked way with a veil or cover when she could have and ought reasonably to have practised it straight with her registered official name? Wasn't the crooked REA using a cover to evade responsibilities and liabilities? Is she allowed to do so when clear provisions of our law seem to forbid that? Can a "close-1-eye" bureaucrat for reasons best known to her re-write the whole law meted out by our Parliament and the statutory body with delegated powers to govern the profession?
Wasn't the use of unofficial name to sign professional documents intended to be legally binding meant that P had no intention to be officially bound as the nick name cannot be officially traced and linked to P and the designation used with the nick name was also a much lower designation and the signature used was also consistently and totally different from that which she uses with her official name!
Given the dealings of M and P, if you were D, would you pay 50% of your fee to P? Would you not fight the dispute until the very end, come what may?
Stay tuned for Part 2...
D told M that he knew of another agent having a piece for sale there. [D had met this agent when he did a planning permission land search at DBKL towards the end of 2004 - DBKL's visitors log-book should be able to confirm this. This agent, a Mr. Wong - the principal of a real estate agency based in Sri Petaling (now moved to Shah Alam) had told D during the encounter in DBKL that he was selling, among others, a piece of bungalow land at Jalan Page, Ukay Heights for its owner who successfully bought it in the 8th Danaharta tender in 2003.] However, as bungalow land in Jalan Page was very sellable, M was told that the Mr Wong was unlikely to do a 3 agencies co-broking where his fee would be shared equally by 3 agencies. D suggested to M to persuade M's buyer to pay agency fee to M's firm and share 50% with D's firm so that Mr. Wong would be more willing to make available his Jln Page land listing for co-broking.
M said no problem because the prospective buyer was a childhood friend of her husband provided the land was suitable.
Soon after that, on 3.1.2005, D's firm received a co-broking letter from M's firm signed by a resident manager Sharon DM saying "our client is interested in the ... property and would like to view the said property. We would appreciate if you could make the necessary arrangement for viewing..." (Facts found out later: Sharon DM was not a name registered in the Lembaga's register of estate agent and was also not M's boss official name, P.)
At that time, D thought Sharon DM was a REA employed by M's firm to be its resident manager. D signed acceptance with his official name the next day but added and initialed an amendment to M firm's original co-broking proposal because D wanted to make sure that any co-broking fee paid by M's firm to D's firm would not be subjected to any condition for refund and so on. The qualified acceptance was faxed back to M's firm on 4.1.2005. Thereafter, D never heard anything from M again about the proposed fee-sharing and viewing.
Towards end of Jan. 2005, a lady who identified herself also as M called. This time, she called and enquired about 2 pieces of bungalow lands at Jalan Page, Ukay Height put up for sale by tender in the paper by D. D had, on or shortly after 10.1.2005, received a circular from his client to all panel agents (including D) informing them about 82 properties being put on sale by tender from 10.1.2005 to 5pm, 17.2.2005 including 2 adjoining pieces of bungalow lands at Jalan Page, Ukay Heights. These 2 adjoining pieces are adjacent to the earlier piece that Mr. Wong had for sale by private treaty.
A few days later in early Feb. 2005, M called D again. This time she told D that she was the same person who called D the other time on the private treaty land at Jln Page and that she didn't call back because her buyer found the land too small for development. She asked if she could co-broke on the 2 adjoining pieces at Jalan Page now for sale by tender and if so, requested that a draft of D's co-agency letter be faxed over to her firm.
On 4.2.2005, D faxed it over together with summary of the tendering process, etc.
Shortly thereafter, M faxed back D's co-agency letter to D's firm with M's resident manager Sharon DM's signature on it and told D that her manager had no problem with D firm's draft. She requested that D signed an original copy of the co-agency letter together with as much information as possible on the 2 lands at Jalan Page for her prospect's evaluation and if found suitable she would arrange for joint-inspection of the 2 lands during which her prospect would be introduced to D and D would have to acknowledge the introduction by counter-signing on the name and particulars of the prospect to be filled into the relevant blank space in the co-agency letter.
However, right until the tender closed, M did not introduce any prospective bidder to D; M did not carry-out any Standard 3.2.8 co-agency joint-inspection with D and M did not secure for D any tender submission from any party.
Parallel to all these: In early Feb 2005, a Gary who identified himself as a banker also called D saying that a Mr Y who is his childhood friend was interested in the 2 lands at Jalan Page for sale by tender and asked if he could meet up with D for more info. Gary met D in his office then at Desa Sri Hartamas and gave D his business card as well as the tel.-cum-fax no.of his Mom's florist shop so that if D need to fax him anything during off-office hours, he could do so. There were many tele-conversations with Gary on the 2 lands thereafter as D's phone bills clearly show.
Then, Gary told D that his childhood friend Y was interested and asked if D could buy the tender packages. After D bought the tender packages, Gary met D in D's office again and collected the 2 original tender packages. Thereafter, Gary and D exchanged more tel conversations.
At night, on the eve of the tender closing date, Gary confirmed in a telephone conversation with D that Y would be tendering for the 2 parcels of lands and asked for advice. Advice was given.
The next morning, Gary left message for D to call back for more advice on how to fill up the tender form etc. In the afternoon, Gary deposited Y's tender submission into the tender box as his office was nearby. Then, in the same afternoon, he faxed the whole photo-stated set of Y's tender submission together with a cover note to D. The cover note says nothing, yes absolutely nothing, about M, M's firm, M's resident manager Sharon DM or M's boss P. Right until the tender closed, D thought Gary was the financier of Mr. Y who is his childhood friend, doing a favour for Y who was busy.
However, soon after the tender closed, M called D to say that Gary was her husband. This was highly unusual and D asked M: Why couldn't M or Gary said so earlier or before the tender closed? M giggled that it was to avoid paying for the costs of tender packages (D took this to mean that if Gary had said he was acting for M or M's firm, M's firm would be asked by D's firm to pay fully for the 2 tender packages. M's firm would only get a 50% re-imbursement upon passing back the tender submission form duly completed by their prospect. Since there was no certainty that Y would submit a tender or be successful in his tender, M's firm decided that it was best not to reveal that Gary was doing this for M or M's firm until the tender closed. Hmmmm.)
Mr. Y did submit the tender and was successful in the tender. Upon learning that, M started to make statements about 50% of D's agency fee. D realised he had issues on hand to settle.
In mid-2005, D told M that he had received his fee and service tax would like to meet up with the principal of M's firm, P. D wanted to probe the many irregularities and illegalities in M's way of estate agency practice - e.g. the name of the signatory for M's firm is not a name found in the Lembaga's register of estate agents, no actual introduction of any prospective buyer by M or M's firm, no Standard 3.2.8 co-agency joint-inspection of properties, no obtainment of any tender submission by M's firm for D firm's submission to D's client, etc.
If such a practice was due to honest ignorance of law and M's firm was apologetic and willing to undertake 50% of the service tax risk arising then (as the service tax received then were about to be released to Custom in July 2005), D was willing to enter into a fresh fee-sharing agreement supported by service tax-risk sharing as "quid pro quo" on "without prejudice" basis. But if M's boss, P, was found to be leasing her "licence" to M and/or others to illicitly practise estate agency using the nickname Sharon DM as a cover, D would not pay M's firm a single sen.
M could not arrange for the meeting despite repeated requests from D and finally explained that M's principal P was a sleeping principal with some kind of arrangement with her resident managers. D then told M that in that case, there won't be any fee payable to M's firm. But M told D not to forget that M still had the original of the co-agency letter signed by D dated 4.2.2005 and she could easily filled in the details of the bidder and use it to claim for 50% of D's fee. D told M that this would be a fraud. M giggled and said fraud is hard to prove.
Because P never came forward to meet D, D thought M was possibly an imposter illegally using P firm's letterhead, P firm's E-number and P's personal E-number to illegally practise real estate agency. But P may very well be knowingly "leasing her REA licence" to M and others and did not want to be seen as doing so. "Owning up" as the principal at that time would also mean having to shoulder 50% service tax risk.
About 1 year later, immediately after the private caveat had been removed and the agency fee and service tax would no longer be subjected to recall by D's client, P (M's boss) suddenly wrote a letter, for the first time using P's official name, her designation as Principal and a different signature (before this, the signatory for M's firm always uses the name Sharon DM, the designation of "Resident Manager" instead of any designation more befitting the boss such as Principal, Proprietor, CEO, etc. and a different signature) claiming for 50% of D's agency fee.
In her letter, P pretended that she had not been told about agency fee having been received by D in mid-2005. But the wordings of P's letter gave her lie away because in the same letter P claimed that D had raised service tax issue with P's operative M. How could D have raised service tax issue with M if the service tax and the agency fee had not been received by D? More so, Gary (whom M subsequently claimed was her husband) had told D before that he had a close friend by the name of Michele working in the office of D's client. So, how could M and P not have known or not have been told that D had received his fee and service tax from his client in mid-2005 before P wrote her letter in July 2006 to D?
P was feigning ignorance of D having informed them (M and P) of the receipt of the agency fee and the service tax to make D appeared as dishonestly withholding information about receipt of the fee in mid-2005 from them. P needed to lie to cover up the fact that she was the one who was hiding for nearly a year to avoid shouldering any service tax risk (possibly breaching a fundamental implied term in any co-agency contract whether by words or by conduct - equal share of risks (and costs) for equal share of fees); and when all risks and potential costs disappeared after the private caveat had been removed, she suddenly appeared and feigned ignorance that the agency fee had been paid to D by D's client in mid-2005.
M went on to lie even further by testifying that M went to meet D's client (which wound down on 31.12.2005) and was told 1) that D had received the fee after the signing of the SPA (true - D already told them this) and 2) that agency fees were invariably paid by D's client after SPAs were signed (false -
No professional staff of D's client could have told M that agency fees were invariably paid by D's client after SPAs were signed because all panel agents who had closed deals for D's client could easily vouch that agency fees from D's client were not invariably paid after the signing of SPA. In fact, in another much bigger deal that D closed for the same client, the agency fee was paid many months after the signing of SPA - i.e paid only after the private caveat was removed; and in another deal transacted by D for D's client involving sale of a 2-storey terrace house in Subang Jaya, the agency fee was never paid even more than a year after the signing of the SPA because the condition precedent (delivery of vacant possession) was never fulfilled -- eventually, the successful bidder who had signed the SPA rescinded the deal and there goes also the fees).
M was cooking up false story about being told by a staff of D's client that agency fee is always paid shortly after the signing of the SPA! M was lying about her meeting with D's client because neither D's client and its successor ("Pkhas") had even once formally or informally informed or notified D about any such meeting nor asked D for any explanation. If M had indeed met D's client before it wound down on 31.12.2005, then M's boss, P, could not have in her letter in July 2006 (Exhibit P20 dated 3.7.2006 at Pg.33 of Bundle C) to D, still claimed no knowledge of the agency fee having been paid to D by D's client in mid-2005. If D's client had already informed M that agency fee had been paid to D in mid-2005, why then was P still claiming or pretending no knowledge of this in her July 2006 letter to D? Both P and M were contradicting each other because they were lying.
D knows for a fact that D's client is a highly professional body manned by highly competent and respectable staff many of whom have now become respectable corporate leaders. M was obviously doing a 'hit and run' lying act: P's lawyer only forwarded M's Witness Statement including about that meeting with D's client in the very same morning before M testified. D had no prior sufficient chance to expose M's lie because, in the same morning, D was re-examined by D's lawyer on this alleged meeting although the instruction from the learned and honourable judge was for the W. Statements to be exchanged 1 week before the trial was to be resumed on 17.12.2010. D forwarded his on 17.12.2010 and M's W.Statement was only forwarded on 18.2.2011 - the same morning that M testified and D was re-examined. On 18.2.2011, D saw for the first time (for just a few seconds), additional bundles of documents (Bundles H & I) filed by P.
P even managed to get an administrative bureaucrat MH to testify in the same morning:
1) that a letter dated 17.12.2010 bearing a statutory board's letterhead was indeed written by her in reply to P lawyer's letter dated one day earlier i.e. 16.12.2010 [in that letter she wrote that P was a registered estate agent practising under a certain E number for a certain period of time mentioned therein and that P is also known as Sharon DM in her estate agency practice] But, on cross-examination by D's lawyer, the same bureaucrat MH also confirmed that she had indeed in 2007 officially informed D's lawyer that Sharon DM was not a registered person (at all all material times mentioned in D lawyer's letter) and that if any member of public were to search the Lembaga's website that day (18.2.2011), the outcome of their searches would still be that Sharon DM was not a registered estate agent. So, what could have caused MH to say 1 thing in 2007 and then say a completely different thing in her letter 17.12.2010? MH and P being of the same colour or was it something else - 'lubricant' that causes the change?
2) that the 2 circulars (Circulars 2/2004 & 2/2006) issued by her (for the executive council of Lembaga, with the words "would require" which practitioners took them to be directives from the Lembaga to be complied with under Rule 110 of the Valuers, Appraisers & Estate Agents Rules 1986 ("VAEA Rules")) were merely circulars "to encourage" the practitioners to do the things mentioned in the circulars - What a joke! No wonder this perception: that in this profession, those who follow the law die one by one; while those who dare to defy it, 'make friend' with the right party, grow and prosper! Anyway, the material circular in this dispute is Circular 2/97 and not Circulars 2/2004 & 2/2006 - Doesn't Circular 2/97 have the force of law to be complied with under Rule 110? Wasn't P using irrelevant circulars to confuse the judge?
3) that professional real estate agency documents signed using unofficial name such as Sharon DM (which D and members of public could not trace and link officially to P whether by official searches with the Lembaga or with IC Section of the National Registration Department) are usually recognised as valid. This, coming from a party who is to govern the profession according to the law is absurd and shocking!
It is D's view that the interpretation by the bureaucrat MH goes against the intention of our Parliament in introducing a system of compulsory registration of estate agents and the introduction of Rule 102 (of VAEA Rules 1986) and Circular 2/97 to ensure that only duly registered estate agents can practise estate agency and sign professional documents related thereto. But the bureaucrat is openly testifying and opining in court that even a nickname can be used for signing agency contract! Congratulations to all those with propensity to 'lease' their 'real estate licences'!
Imagine, all registered estate agents signing professional estate agency documents using not their registered official names but their unregistered nick names which any search with the Lembaga would not link the nick names to their official names and any search with the IC Section of the NRD also could not link the nick names to the REAs. If their loosely-attached operatives abscond with client's or customer's money, how is the member of public to hold the REA concerned responsible? If their operatives commit the civil wrongs of, say, trespass or misrepresentation, how is the aggrieved party capable of suing the REAs concerned?
Would the REA concerned then willingly claim that the nick name is also hers and that she is also practising using the nick name? Why is a professional practising her profession in such a crooked way with a veil or cover when she could have and ought reasonably to have practised it straight with her registered official name? Wasn't the crooked REA using a cover to evade responsibilities and liabilities? Is she allowed to do so when clear provisions of our law seem to forbid that? Can a "close-1-eye" bureaucrat for reasons best known to her re-write the whole law meted out by our Parliament and the statutory body with delegated powers to govern the profession?
Wasn't the use of unofficial name to sign professional documents intended to be legally binding meant that P had no intention to be officially bound as the nick name cannot be officially traced and linked to P and the designation used with the nick name was also a much lower designation and the signature used was also consistently and totally different from that which she uses with her official name!
Given the dealings of M and P, if you were D, would you pay 50% of your fee to P? Would you not fight the dispute until the very end, come what may?
Stay tuned for Part 2...
Friday, December 10, 2010
Earn As You Learn Basic Web Designing & Publication
Dear Readers,
A few years ago, it struck me that I should know something about web designing and publication first hand. And, I thought why don't I I learn and at the same time I earn? I then decided to buy a value-for-money web hosting package with a world-renowned web-host (please click the hotlink below). At that time, US$1 = RM3.80. Still the package was much cheaper and superior than any web hosting packages I could buy from local web hosts - You do your research and you will know what I meant.
I used the free site builder that comes with the web-hosting package to design an affiliate marketing website for my domain name (www.GT-ibiz.com) which I separately bought. Within just 12 months of trying as a newbie with "zero" knowledge, I was able to receive 2 cheques in US$ from Commission Junction and declared some profits to the Inland Revenue.
But our Malaysian broadband's reliability and speed were constant annoying issues back then. After making numerous "feedback calls" to Multimedia Commission, I gave up before improvements finally came. But, at least, I have tried and found out that it is possible to use the "free website builder" to build a website that makes money online as a complete newbie in internet marketing.
Now that the reliability and internet speed issues have been largely improved - although, the costs of internet access/usage remain relatively high compared to those in the advanced countries that I know of in my earlier foray in affiliate marketing, I am beginning to feel that it would be less frustrating now to try my hands at internet marketing again during my leisure.
To me, paying about RM16/mth to subscribe to a world renowned web hosting package which comes with "free website builder" for me to learn and teach myself web designing and publication during my free time and at my own pace is really good peanut in this era of ICT and online marketing. YOU don't have to be illiterate in online marketing or in dealing with web designers for your products and services to be marketed 24hrs a day, 7 days a week and 365 days a year, non-stop via the internet, even when you sleep or holidaying away!
Wherever you may be.....start learning web designing and publication now if you have not even started.....
Cheers,
Douglas GT Tan
Hp No.: 012-288 6993
A few years ago, it struck me that I should know something about web designing and publication first hand. And, I thought why don't I I learn and at the same time I earn? I then decided to buy a value-for-money web hosting package with a world-renowned web-host (please click the hotlink below). At that time, US$1 = RM3.80. Still the package was much cheaper and superior than any web hosting packages I could buy from local web hosts - You do your research and you will know what I meant.
I used the free site builder that comes with the web-hosting package to design an affiliate marketing website for my domain name (www.GT-ibiz.com) which I separately bought. Within just 12 months of trying as a newbie with "zero" knowledge, I was able to receive 2 cheques in US$ from Commission Junction and declared some profits to the Inland Revenue.
But our Malaysian broadband's reliability and speed were constant annoying issues back then. After making numerous "feedback calls" to Multimedia Commission, I gave up before improvements finally came. But, at least, I have tried and found out that it is possible to use the "free website builder" to build a website that makes money online as a complete newbie in internet marketing.
Now that the reliability and internet speed issues have been largely improved - although, the costs of internet access/usage remain relatively high compared to those in the advanced countries that I know of in my earlier foray in affiliate marketing, I am beginning to feel that it would be less frustrating now to try my hands at internet marketing again during my leisure.
So, friends out there - particularly, the real estate people: If you want to teach your self web designing and publication at minimal costs during your free time, I suggest you start by using the "free website builder" provided by this value-for-money web hosting package at only US$4.95/mth (about RM16/mth only, based on US$1 = RM3.2) from this world renowned web host (click HOSTGATOR for specific details) which comes with unlimited bandwidth and unlimited disk space!
And, DON'T forget, to enjoy a further discount, enter "propertyhost" as the "discount coupon code" after you have made your selection of the web hosting package and are about to pay online via your PayPal account or your credit card - there is a space or "data field" for you to enter "propertyhost" as the "discount coupon code" to enjoy a further discount of nearly US$10!
To me, paying about RM16/mth to subscribe to a world renowned web hosting package which comes with "free website builder" for me to learn and teach myself web designing and publication during my free time and at my own pace is really good peanut in this era of ICT and online marketing. YOU don't have to be illiterate in online marketing or in dealing with web designers for your products and services to be marketed 24hrs a day, 7 days a week and 365 days a year, non-stop via the internet, even when you sleep or holidaying away!
Wherever you may be.....start learning web designing and publication now if you have not even started.....
Cheers,
Douglas GT Tan
Hp No.: 012-288 6993
Tuesday, September 28, 2010
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
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)"
---------------------------------------------------------------------------------------------------------------
The Brochure:
Mr/Mrs/Ms Name : __________________________________________
Organisation : _________________________________________
Designation : __________________________________________
Address : ___________________________________________
__________________________________________
__________________________________________
Postcode: ____________ City: _______________ State: _____________
Tel : __________________________Fax : _________________________
E-mail: _____________________________________________________
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
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.
or local order to: BENDAHARI UNIVERSITI MALAYA.
Mode of Payment Cancellation Policy
No REFUND will be made upon
any cancellation.
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
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
---------------------------------------------------------------------------------------------------------
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
---------------------------------------------------------------------------------------------------------
During this programme, the participants will be given Handouts & Certificate 5 CPD hours applied from
BOVAEA
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
• 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
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.
• 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"
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
Friday, September 17, 2010
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
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
Wednesday, September 15, 2010
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":
Cheers,
Douglas GT Tan
Moderator.
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":
- 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");
- 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);
- 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!
Cheers,
Douglas GT Tan
Moderator.
Sunday, September 12, 2010
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:
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
(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.
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
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