Petaling Jaya, 29 September 2020 – The Malaysian Institute of Estate Agents (MIEA) is advising all Malaysians who are planning to engage in property transactions to use the services of a Registered Estate Agent (REA), Probationary Estate Agent (PEA) or Real Estate Negotiator (REN).
The number of complaints received by MIEA has increased by 30 per cent during the Movement Control Order (MCO) and Recovery Movement Control Order (RMCO) periods. There are many members of the public who are unaware of the risk of financial ruin when dealing with unauthorised agents to carry out real estate transactions.
REAs and RENs are trained to be professional and ethical in their business dealings, aware of market trends and are familiar with the laws governing property transactions. Members of the public are protected because all registered firms are required to have a client’s account and purchase Professional Indemnity Insurance (PII) to cover themselves against any negligence with monies received or held by them.
To safeguard the interest of the public, MIEA launched a public awareness campaign called #MYREALAGENTS in the beginning of the year and it is aimed at being a free resource to share advice and information on how to best use the services of an REA or REN, as well as the common types of property pitfalls and the dangers of using illegal brokers.
Act 242 or Valuers, Appraisers and Estate Agents Act 1981 also states that illegal brokers who engage in property transactions can, if convicted, be fined not exceeding RM300,000, or imprisonment for a term, not more than 3 years, or both. A further penalty of RM1,000 for each day during the continuance of such offence shall also be imposed. This provision also applies to any person who aids and abets in the commission of the offence.
The president of MIEA, Lim Boon Ping, also addressed the media coverage of news regarding Malaysian practitioners.
“While we are concerned about the number of scams that are increasingly taking place, we, as an institute representing the 25,000 real estate practitioners across Malaysia, are concerned about the misrepresentation made in recent press reports that real estate agents are cheating clients. These are inaccurate statements,” said the President of MIEA, Lim Boon Ping.
He added, “To unilaterally say that a real estate agent does something fraudulent is a serious matter and the fact needs to be established whether they are truly registered agents or illegal brokers. Illegal brokers are out there for quick profits and they are not trained, recognised or authorised to do any real estate transaction.”
By law, the term real estate agent refers to a person who has passed Part 1 and 2 of the real estate examinations over a minimum period of two years and has also undergone post practical training for an additional two years. On completion, they have to sit for a test of professional competence before their names are registered. They are governed by ACT 242, have fiduciary responsibilities to their clients, and adhere to the code of conduct and ethics.
– Construction+ Online