- Who can register themselves as Estate Agents?
Anyone who is a Malaysian citizen or Permanent Resident (PR) of Malaysia and having met the prescribed qualifications and experience is entitled to register themselves with BOVAEA. The prescribed qualifications are according to the list as stated in the website (www.lppeh.gov.my).
Having attained the qualification, the person must register himself as:
- a Probationary Estate Agent
- undergo a two (2) year post practical training with a registered estate agent and maintain a work diary.
- Having fulfilled the above, he has to submit two practical tasks and to be interviewed by a Boards interview panel (called Test of Professional Competence). After passing the TPC, he/she shall then apply to register with the Board where an Authority to Practice Estate Agency called Form I will be issued. He is then called a registrant or registered person or a real estate agent (REA).
- Who can set-up a real estate agency firm?
Anyone who is registered with the Board as mentioned above is entitled to set-up a real estate agency firm. The firm can be either operated as a sole-proprietor E(3), partnership E(2), or body corporate E(1) (Sdn Bhd). For sole-proprietor, the proprietor of the firm must be a registered person with BOVAEA. For partnership, both the partners must be registered person. For body corporate, at least two of the directors must be a registered person. Any of these set-up as approved by the Board are called the registered firm.
- Can a non-registered person or corporation allowed to own shares in the registered firm?
Yes, non-registered person/s or corporation is allowed to own shares but not exceeding 49% equity of the firm. To allow this to happen, a holding company must be established which must be 100% owned by the registered persons only. This holding company is then required to own not less than 51% of the registered firm. A majority of the directors in the registered firm must be a registered person. (Example, if the registered firm has 5 directors, 3 of them must a registered person)
- How many offices that I can operate?
There is no limit on the number of offices but every office has to be registered with the Board. Each office must be managed by a Resident Manager who must be a registered person.
- What type of premise that is allowed to be used as registered firm?
Must be local council approved commercial location which is fit for a professional firm. It should have a separate main entrance to the premises being occupied as a registered office. Shared business centre or virtual office are not allowed to be used as a registered office.
- Does BOVAEA allowed setting of sales gallery or training centre.
Any set-up of sales gallery or training centre shall obtain prior written consent from BOVAEA. However, if real estate transaction is allowed in the premise being used as sales gallery or training centre, it must be registered with BOVAEA and a Resident Manager is required to manage it.
- How many real estate negotiators (REN) that a firm can engage/hire?
Each registrant can hire a maximum of 20 RENs. Once the Registrant achieved the maximum 20 RENs. An applications can be made to BOVAEA to increase to a maximum of 30 RENs (subject to BOVAEA approval based on previous track record). If the firm has more than one real estate agent (REA), then the numbers can be multiplied accordingly.
- What happen if my Resident Manager who manages my branch office resigns?
The firm shall immediately notify BOVAEA in writing who normally grants a period of 3 months to find a new Registrant. If no replacement is found and further appeal to BOVAEA is rejected, the branch has to be closed or cease operation.
- If a REA resigns and I could not find a replacement, what happen to the negotiator attached to his registration?
If no replacement was found within 3 months from the date of resignation, the negotiator has to resign from the company.
- What happens if my REN resigns or is terminated?
When a negotiator resigns or terminated, he is required to surrender his REN Tag to the firm, who shall then surrender it to BOVAEA. Anyone who fails to return the REN Tag to BOVAEA will be blacklisted and no renewal or reissuance of the tag will be made.
- Do I need to register my assistant?
Not necessary if s/he is merely doing paperwork or coordination and supporting work. However, his contact details shall not appear in all the marketing material including signboards and advertisement.
- Does my negotiator under probationary period need to register with the board?
There is no provision for probationary REN. Any REA employing anyone other than the Certified REN is committing an offence.
ADVERTISEMENT AND PROMOTIONS
- Advertisement in newspaper and property portal?
All advertisement posted by REN must contain the Firm E registration number, Firm telephone number, Firm name and REN No besides their mobile no. Action can be taken if signboards do not follow this rule.
- Can I report if the signboard is put-up by illegal brokers?
Absolutely, yes. Take a photo of the signboard and send it to BOVAEA. It is important to indicate the street name, date and time including your name and contact no. BOVAEA will verify it before sending it to Malaysia Communication and Multimedia Commission (MCMC). MCMC will then suspend and bar the mobile no.
- Clients account
Every registered firm is required to maintain a Clients Account. Every registered firm that holds or receives client’s money shall without delay pay such money into the Clients Account. All monies in the Clients Account are held by the Firm as stakeholder for their clients.
- Professional Indemnity Insurance
Every registered firm is also required to purchase a Professional Indemnity Insurance to cover themselves against any negligence. The quantum or sum insured depends on their business volume or turnover.
- Registered Persons / Firms
Any registered REAs or firms who commit any wrong doings will be subjected to BOVAEA disciplinary action which includes fines, suspension or deregistration.