Hi Folks,
Do you know that Malaysian Estate Agency law further protects you by requiring every registered estate agency firm - please see: Standard 2.2.13 - to have adequate professional indemnity cover?
You are only protected if and when you use the services of registered estate agents. Just like when you use a taxi, you are only protected by insurance if you use a legal taxi with mandatory insurance cover. Never use a bogus taxi or a bogus agent - for this obvious reason!
The real estate agent's professional indeminity insurance cover is against any claim for breach of professional duty which may be against the registered estate agent and/or their employees and Agents by reason of any Negligent Act, Error or Omission including the costs and expenses incurred in the defence or settlement of any claim.
The minimum cover is RM100,000.00. For a cover of RM250,000.00 for gross fees up to RM5,000,000.00, the insurance premium paid by the agency was more than RM1000 per annum. This amount just to protect you the consumers of professional services!
So, why use a bogus agent or its loosely-attached operatives who can all easily 'fly by night' with your money when you should use legal real estate agents and/or their employees or Agents whose details are all submitted to the relevant statutory Board (i.e. Board of VAEA) for its record and whose insurers are there to indemnify you against the risks mentioned?
Professional Indemnity Cover is therefore yet another reason why the Public should avoid the bogus agents or their 'gung-hoo' operatives.
It is Always Wiser to Use Services of Legal & Registered Estate Agents!
Cheers,
Douglas GT Tanhalim
Sunday, January 27, 2008
Wednesday, January 9, 2008
Non-REAs Not Allowed By Law to Participate for Profit in Real Estate Agency Practice of REAs
Hi Folks,
When the Malaysian Real Estate Agency law sets out to protect the public from being served directly by non-REAs by introducing a system of registration of qualified people as REAs (Registered Estate Agents), the law is equally careful enough to ensure - through its legal provisions - that the public is not served even indirectly by non-REAS through some back-door arrangements.
Among the legal provisions to prevent back-door practice of real estate agency in Malaysia by non-REAs are Rule 91 and Standard 5.2.17.
Rule 91(1) prohibits Participation In the Profits of REA’s Practice by any Non-REA; whilst Rule 91(2) allows payment of a share of his commission not exceeding 40% to a member of his staff - whom Standard 9 termed a Negotiator - who is under his control and supervision to assist an REA in his real estate agency practice.
Rule 91(2): Notwithstanding Rule 91(1), a REA may pay a commission to a member of his staff who is under his control or supervision not more than 40% in aggregate of the fee in the transaction.
Again, to prevent "back-door" practice of estate agency by various illegal means (licence-leasing, sub-letting, etc), Std 5.2.17 unequivocally disallows any unauthorised person to carry on estate agency practice in the REA’s name without the REA’s direct and immediate control or proper supervision.
As it is now, the Malaysian Estate Agency law, as far as my understanding goes, disallows any non-REA from participating for profit in the practice of real estate agency in Malaysia in cohort with any Malaysian REA - non-REAs cannot even take up or subscribe for a minority stake in the equity of any registered estate agency (REA) firm of Malaysia.
Only a Negotiator who is duly employed as per, among others, Standard 9 of the Malaysian Estate Agency Standards 1999 or REA firm which enters into a legally binding co-agency agreement may be paid an agreed share (of not more than 40% for a Negotiator) of the commission earned from any deal assisted by the Negotiator or co-broke with the co-agent.
See, how strict it is the Malaysian Estate Agency law in protecting the public from being served by unqualified parties, "fly-by-night" opportunists, rogues and, in short, illegal real estate agents.
Deal only with Registered Estate Agents of Malaysia and their legally employed Negotiators - say NO to Illegal Estate Agents and Property Marketers in any disguise, forms or veils.
Cheers,
Douglas GT Tan
When the Malaysian Real Estate Agency law sets out to protect the public from being served directly by non-REAs by introducing a system of registration of qualified people as REAs (Registered Estate Agents), the law is equally careful enough to ensure - through its legal provisions - that the public is not served even indirectly by non-REAS through some back-door arrangements.
Among the legal provisions to prevent back-door practice of real estate agency in Malaysia by non-REAs are Rule 91 and Standard 5.2.17.
Rule 91(1) prohibits Participation In the Profits of REA’s Practice by any Non-REA; whilst Rule 91(2) allows payment of a share of his commission not exceeding 40% to a member of his staff - whom Standard 9 termed a Negotiator - who is under his control and supervision to assist an REA in his real estate agency practice.
Rule 91(2): Notwithstanding Rule 91(1), a REA may pay a commission to a member of his staff who is under his control or supervision not more than 40% in aggregate of the fee in the transaction.
Again, to prevent "back-door" practice of estate agency by various illegal means (licence-leasing, sub-letting, etc), Std 5.2.17 unequivocally disallows any unauthorised person to carry on estate agency practice in the REA’s name without the REA’s direct and immediate control or proper supervision.
As it is now, the Malaysian Estate Agency law, as far as my understanding goes, disallows any non-REA from participating for profit in the practice of real estate agency in Malaysia in cohort with any Malaysian REA - non-REAs cannot even take up or subscribe for a minority stake in the equity of any registered estate agency (REA) firm of Malaysia.
Only a Negotiator who is duly employed as per, among others, Standard 9 of the Malaysian Estate Agency Standards 1999 or REA firm which enters into a legally binding co-agency agreement may be paid an agreed share (of not more than 40% for a Negotiator) of the commission earned from any deal assisted by the Negotiator or co-broke with the co-agent.
See, how strict it is the Malaysian Estate Agency law in protecting the public from being served by unqualified parties, "fly-by-night" opportunists, rogues and, in short, illegal real estate agents.
Deal only with Registered Estate Agents of Malaysia and their legally employed Negotiators - say NO to Illegal Estate Agents and Property Marketers in any disguise, forms or veils.
Cheers,
Douglas GT Tan
Tuesday, January 8, 2008
Recognised Qualifications for Registration as Real Estate Agents of Malaysia
Hi Folks,
Happy New Year 2008!
It's time to get cracking: eight days have passed since the new year dawned.
For fellow Malaysians, the early good news was that the Malaysian government was kind enough not to raise fuel prices for the time being (for as long as it could afford, so it was reported in the press).
But one thing for sure, crude oil price has gone past US$100/barrel; families with school going children must have also discovered by now that although the government has kindly waived all school fees and loaned all school children with free text books, families are ironically paying much more education fees than before: the list of PTAs(Parents-Teachers Associations)-imposed miscellaneous fees have gotten longer, causing the total quantum to go up on top of a separate list of "extra-curricular" text books and work books that children must buy (with cheques payable to a certain book store outside); there was also the irony of cooking oil shortage nationwide which the government has acted to resolve.
The average or low-income families, the way I see it, hoped that the authorities would play its watch-dog role for them by auditing (approving or disapproving) all PTA-imposed fees and their accounts, bread-winners of these families must also play their part by working doubly hard (2 jobs even like many in a southern republic) and smart early from the new year... You never know what other prices will go up shortly...
So, it's time to get cracking - the early the better for all families!
That aside, in my first post for this year, I want to give you the link which you can click on to check on the qualifications recognised for registration as estate agents or even valuers of Malaysia - as a follow-up to my post of Nov 9 2007 where I mentioned that "...only persons who meet the requirements stipulated in Secs 22A (& 22D) of the VAE Act 1981 shall be entitled for registration as real estate agents and be issued with the authority under Sec 16 to practise real estate agency" as the 1st safeguard the Malaysian Estate Agency law provides to protect public interests via a system of registration of duly qualified persons...
I suggest that all who are currently eyeing Malaysian estate agency business, do check your qualification(s) and eligibility out to avoid running foul of the Malaysian real estate agency law!
Visit this blog often to know more.
Cheers,
Douglas GT Tan
P/s:
Visit this Online Gifts Bay to shop for your Valentine's Day Gifts or gifts for any occasions for that someone special!
Happy New Year 2008!
It's time to get cracking: eight days have passed since the new year dawned.
For fellow Malaysians, the early good news was that the Malaysian government was kind enough not to raise fuel prices for the time being (for as long as it could afford, so it was reported in the press).
But one thing for sure, crude oil price has gone past US$100/barrel; families with school going children must have also discovered by now that although the government has kindly waived all school fees and loaned all school children with free text books, families are ironically paying much more education fees than before: the list of PTAs(Parents-Teachers Associations)-imposed miscellaneous fees have gotten longer, causing the total quantum to go up on top of a separate list of "extra-curricular" text books and work books that children must buy (with cheques payable to a certain book store outside); there was also the irony of cooking oil shortage nationwide which the government has acted to resolve.
The average or low-income families, the way I see it, hoped that the authorities would play its watch-dog role for them by auditing (approving or disapproving) all PTA-imposed fees and their accounts, bread-winners of these families must also play their part by working doubly hard (2 jobs even like many in a southern republic) and smart early from the new year... You never know what other prices will go up shortly...
So, it's time to get cracking - the early the better for all families!
That aside, in my first post for this year, I want to give you the link which you can click on to check on the qualifications recognised for registration as estate agents or even valuers of Malaysia - as a follow-up to my post of Nov 9 2007 where I mentioned that "...only persons who meet the requirements stipulated in Secs 22A (& 22D) of the VAE Act 1981 shall be entitled for registration as real estate agents and be issued with the authority under Sec 16 to practise real estate agency" as the 1st safeguard the Malaysian Estate Agency law provides to protect public interests via a system of registration of duly qualified persons...
I suggest that all who are currently eyeing Malaysian estate agency business, do check your qualification(s) and eligibility out to avoid running foul of the Malaysian real estate agency law!
Visit this blog often to know more.
Cheers,
Douglas GT Tan
P/s:
Visit this Online Gifts Bay to shop for your Valentine's Day Gifts or gifts for any occasions for that someone special!
Friday, December 28, 2007
New Year 2008 Brings New Hopes As Well As New Challenges to Real Estate Marketers.
Hi Folks,
In just three days time, Year 2007 will be leaving us behind - hopefully, with sweet memories - and a brand new year will be arriving with new hopes, God willing.
But one of the earliest dampener for the New Year could well be new price hikes for fuels (petrol, diesel and LPG): the lower middle and lower income groups will, in my view, be quite hard hit because any steep hikes in fuel prices is likely to bring about a multitude of price hikes across a broad range of consumer items - many of which were already on the rise by 30% this year....hmmmm
That may also explain why many were so easily persuaded to join the recent spates of street demo - something by the thousands not so possible previously whatever the persuasions...
Tighter control on inflationary pressure and more economic measures to increase per capita real incomes across the board will be the sure way, in my view, to neutralise any extremist groups trying to fish in troubled waters...Just my 2 sen's worth.
Anyway, the new year 2008 will certainly bring us new hopes as well as challenges.
Hope that it will not be very hard on marketing people like you and I who need to travel quite a bit to fish for our marketing incomes...
For the new year resolutions, perhaps we can consider the possibility of new sources of income such as via Internet business:
1) if interested to know more about the whats, the whys and the hows of Internet business, there are structured posts in this blog: http://MoneyMakingViaInternet.blogspot.com; and,
2) when you are ready to launch an Internet business, visit:
a) http://GT-ibiz.com/domainname/ to grab a good domain name real cheap;
b) http://GT-ibiz.com/webhosting/ to grab a good hosting package;
c) http://www.GT-ibiz.com for all the web tools you need for Internet business.
3) when you have made enough money, check out http://www.eOneBay.com/ for all the great gifts you may want to send for various occasions and special reasons!
The links to all the abovementioned blogs and web sites can be clicked on the left of this blog.
May God bless us all in this New Year.
Cheers,
Douglas GT Tan
In just three days time, Year 2007 will be leaving us behind - hopefully, with sweet memories - and a brand new year will be arriving with new hopes, God willing.
But one of the earliest dampener for the New Year could well be new price hikes for fuels (petrol, diesel and LPG): the lower middle and lower income groups will, in my view, be quite hard hit because any steep hikes in fuel prices is likely to bring about a multitude of price hikes across a broad range of consumer items - many of which were already on the rise by 30% this year....hmmmm
That may also explain why many were so easily persuaded to join the recent spates of street demo - something by the thousands not so possible previously whatever the persuasions...
Tighter control on inflationary pressure and more economic measures to increase per capita real incomes across the board will be the sure way, in my view, to neutralise any extremist groups trying to fish in troubled waters...Just my 2 sen's worth.
Anyway, the new year 2008 will certainly bring us new hopes as well as challenges.
Hope that it will not be very hard on marketing people like you and I who need to travel quite a bit to fish for our marketing incomes...
For the new year resolutions, perhaps we can consider the possibility of new sources of income such as via Internet business:
1) if interested to know more about the whats, the whys and the hows of Internet business, there are structured posts in this blog: http://MoneyMakingViaInternet.blogspot.com; and,
2) when you are ready to launch an Internet business, visit:
a) http://GT-ibiz.com/domainname/ to grab a good domain name real cheap;
b) http://GT-ibiz.com/webhosting/ to grab a good hosting package;
c) http://www.GT-ibiz.com for all the web tools you need for Internet business.
3) when you have made enough money, check out http://www.eOneBay.com/ for all the great gifts you may want to send for various occasions and special reasons!
The links to all the abovementioned blogs and web sites can be clicked on the left of this blog.
May God bless us all in this New Year.
Cheers,
Douglas GT Tan
Friday, December 14, 2007
What Professional Fees Can Estate Agents, Property Managers & Valuers Charge Under the Law in Malaysia?
Hi Folks,
Under the normal law of commerce and contract, there is wide if not absolute freedom to contract for both parties to a transaction - that is, to negotiate and agree on all matters and issues pertaining to that transaction including the price.
However, once a business practice becomes a professional practice by law, there will be legal stipulations governing the conduct of what is now a professional practice including the amount of professional fees that may be charged as a matter of public interest.
On professional fees that may be charged, there are usually: a maximum ceiling and a minimum ceiling. Charging professional fees above the prescribed maximum ceiling amounts to the offence of over-charging; whereas, charging below the minimum amount amount to an unethical conduct of under-cutting fellow professionals.
Go to the official web site of the Board of Valuers, Appraisers & Estate Agents Malaysia (just click on the link given) if you want to know what professional fees are chargeable by registered estate agents, property managers and estate agents!
Don't be overcharged! Neither should you under-pay a Registered Estate Agents!
Cheers,
Douglas GT Tan
Under the normal law of commerce and contract, there is wide if not absolute freedom to contract for both parties to a transaction - that is, to negotiate and agree on all matters and issues pertaining to that transaction including the price.
However, once a business practice becomes a professional practice by law, there will be legal stipulations governing the conduct of what is now a professional practice including the amount of professional fees that may be charged as a matter of public interest.
On professional fees that may be charged, there are usually: a maximum ceiling and a minimum ceiling. Charging professional fees above the prescribed maximum ceiling amounts to the offence of over-charging; whereas, charging below the minimum amount amount to an unethical conduct of under-cutting fellow professionals.
Go to the official web site of the Board of Valuers, Appraisers & Estate Agents Malaysia (just click on the link given) if you want to know what professional fees are chargeable by registered estate agents, property managers and estate agents!
Don't be overcharged! Neither should you under-pay a Registered Estate Agents!
Cheers,
Douglas GT Tan
Thursday, December 13, 2007
How to check whether you are dealing with lawful estate agents or their assistants (aka Negotiators)?
Hi Folks,
The Board of Valuers, Appraisers & Estate Agents Malaysia has now make it easy and possible for members of public to check through its official web site whether the person you are dealing with is a lawful real estate agent or a Negotiator employed by a registered estate agency firm.
How to check, you may ask?
Just go to the Board's official website and enter any of the following in the relevant search boxes at the site's homepage:
1) the firm's name or its E No. - to check if the firm is a registered estate agency;
2) the agent's name or the person's E No. - to check if he is indeed a registered estate agent;
3) the probationary estate agent's name or E No. - to check if he is indeed a probationary estate agent (meaning those who have passed the written exams and are now en-route to the final Test of Professional Competence);
4) the Negotiator's name - to check whether he is in the lists of Negotiators which all registered estate agency firms have to furnish to the Board on half yearly basis by end of June and December or within one month (or, is it within 7 days? Will check on Circular 2/2006) upon any changes - new recruitment, resignation, dismissal and the likes - in their employment register of Negotiators.
So members of public whenever you want to check whether you are dealing with the lawful party, just click: here!
Cheers,
Douglas GT Tan
The Board of Valuers, Appraisers & Estate Agents Malaysia has now make it easy and possible for members of public to check through its official web site whether the person you are dealing with is a lawful real estate agent or a Negotiator employed by a registered estate agency firm.
How to check, you may ask?
Just go to the Board's official website and enter any of the following in the relevant search boxes at the site's homepage:
1) the firm's name or its E No. - to check if the firm is a registered estate agency;
2) the agent's name or the person's E No. - to check if he is indeed a registered estate agent;
3) the probationary estate agent's name or E No. - to check if he is indeed a probationary estate agent (meaning those who have passed the written exams and are now en-route to the final Test of Professional Competence);
4) the Negotiator's name - to check whether he is in the lists of Negotiators which all registered estate agency firms have to furnish to the Board on half yearly basis by end of June and December or within one month (or, is it within 7 days? Will check on Circular 2/2006) upon any changes - new recruitment, resignation, dismissal and the likes - in their employment register of Negotiators.
So members of public whenever you want to check whether you are dealing with the lawful party, just click: here!
Cheers,
Douglas GT Tan
Tuesday, December 4, 2007
Further Protection of Public Interests by Malaysian Estate Agency Standards 1999
The Malaysian Estate Agency Standards (MEAS) which came into force on 1 Sept 1999 - to further regulate the practice of estate agency in Malaysia under power given to the Board of VAEA under sec 10(g) of the VAE Act 1981 - provides further protection of public interests through its various standards - one of which known as Standard 9 is about the employment of assistants (known as the "Negotiators") of the registered estate agents.
Not anyone can any how be engaged by the REAs as their Negotiators - this is clearly to ensure the public is served by Negotiators who can be held accountable for their actions and conducts and not by those on loose attachments or who "work" for unregistered persons on "loan" licences from sleeping REAs who can clearly "fly by night" when necessary.
Standards 9 requires Negotiators to work full-time and not part-time (Std 9.2.3), always under the direction and supervision of the REAs (who therefore are not allowed to be "sleeping")(Std 9.2.1) and not to operate independently (9.2.2) nor to sign any formal estate agency letter or document nor advertise on behalf of the REAs (Std 9.2.17)...
To ensure that Negotiators are full-timers, Std 9.2.12 and the Circular 1/2000 on it requires the Negotiators to be paid monthly salaries (with EPF contributions as stipulated in another Circular)...
To ensure that the Negotiators are not from the "licence-leasing" firms who are traditionally paid high commission (70% or more) with no salary, Std 9.2.12 imposes a 40% ceiling on commission payable to a Negotiator from any deal assisted/handled by him/her...
You see, if a Negotiator gets 70% or more, chances are the REA would not want to spend time and effort (not to mention money too) supervising and training them for the remaining 20% to 30% of the commission in return.
Negotiators on high % commission are mostly on loose attachment or working for licence-leasing firms where the REA concerned would not sign any formal document using his/her official name, official designation and signature for the reasons already given in the preceding post - to disclaim responsibility if there is a civil suit or investigations for offences.
To ensure effective supervision, direction and training, Std 9 further imposes the max number of Negotiators who may worked under a REA to 20 at any one time (Std 9.2.14).
Signs of Negotiators who work on "loose attachment" to or for "licence-leasing" firms are these:
# they are not paid the compulsory monthly salary and the EPF contributions thereon;
# they are on high % commission payout;
# their firms have more than 20 Negotiators per REA;
# their formal documents are not signed under the official name, official designation or signature of any REA in the firm;
# the address on the letterhead of their document may not be the registered address of the REA firm as at that time - of course, when there are fees to be claimed, they will then register or change to the correct business address.
Deal only with bona fide REAs, REA firms and Negotiators - say NO to any practice by "Loose Attachment" or "Licence Leasing"!
Cheers,
Douglas, GT TANHALIM
P/s: Compliance with the Standards 1999 by the REAs is required under Rule 110 of the VAE Rule 1986.
Not anyone can any how be engaged by the REAs as their Negotiators - this is clearly to ensure the public is served by Negotiators who can be held accountable for their actions and conducts and not by those on loose attachments or who "work" for unregistered persons on "loan" licences from sleeping REAs who can clearly "fly by night" when necessary.
Standards 9 requires Negotiators to work full-time and not part-time (Std 9.2.3), always under the direction and supervision of the REAs (who therefore are not allowed to be "sleeping")(Std 9.2.1) and not to operate independently (9.2.2) nor to sign any formal estate agency letter or document nor advertise on behalf of the REAs (Std 9.2.17)...
To ensure that Negotiators are full-timers, Std 9.2.12 and the Circular 1/2000 on it requires the Negotiators to be paid monthly salaries (with EPF contributions as stipulated in another Circular)...
To ensure that the Negotiators are not from the "licence-leasing" firms who are traditionally paid high commission (70% or more) with no salary, Std 9.2.12 imposes a 40% ceiling on commission payable to a Negotiator from any deal assisted/handled by him/her...
You see, if a Negotiator gets 70% or more, chances are the REA would not want to spend time and effort (not to mention money too) supervising and training them for the remaining 20% to 30% of the commission in return.
Negotiators on high % commission are mostly on loose attachment or working for licence-leasing firms where the REA concerned would not sign any formal document using his/her official name, official designation and signature for the reasons already given in the preceding post - to disclaim responsibility if there is a civil suit or investigations for offences.
To ensure effective supervision, direction and training, Std 9 further imposes the max number of Negotiators who may worked under a REA to 20 at any one time (Std 9.2.14).
Signs of Negotiators who work on "loose attachment" to or for "licence-leasing" firms are these:
# they are not paid the compulsory monthly salary and the EPF contributions thereon;
# they are on high % commission payout;
# their firms have more than 20 Negotiators per REA;
# their formal documents are not signed under the official name, official designation or signature of any REA in the firm;
# the address on the letterhead of their document may not be the registered address of the REA firm as at that time - of course, when there are fees to be claimed, they will then register or change to the correct business address.
Deal only with bona fide REAs, REA firms and Negotiators - say NO to any practice by "Loose Attachment" or "Licence Leasing"!
Cheers,
Douglas, GT TANHALIM
P/s: Compliance with the Standards 1999 by the REAs is required under Rule 110 of the VAE Rule 1986.
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