- Who is the Board of Valuers, Appraisers and Estate Agents (BOVAEA)?
BOVAEA was formed under the Act of Parliament – Valuers, Appraisers and Estate Agents Act 1981 (Act 242) and is under the purview of the Ministry of Finance. It has 17 Board Members and a Registrar. The President of the Board is the Director General of Valuation Services Department or JPPH. Other Board members comprises of representatives of the Valuation Department, Valuers, Estate Agents, Property Managers and Academician.
- Function of BOVAEA
The main function of BOVAEA is to regulate the professional conduct of those registered by the Board including Valuers, Property Managers and Estate Agents.
a) Who is a Real Estate Agent (REA)?
A real estate agent (REA) is an individual who has attained the following requirements;
- Have passed part 1 & part 2 comprising of 12 papers
- Registered as a Probationary Estate Agent (PEA)
- Have completed two years of post-practical training with a Real Estate firm
- Have completed task 1 & 2 and
- Passed the test of professional competence (TPC) after which
- Whose name has been placed on a register in the Board as a Registered
- An estate agent can operate his/ her own Real estate firm.
- Provide real estate service in selling, leasing properties or finding a property for the clients.
- To employ up to 30 Real Estate Negotiators to assist the Real Estate Agent to providing Real Estate services.
b) Who is a Real Estate Negotiator (REN)?
A Real Estate Negotiator (REN) is an individual who is employed by a registered estate agent. They are not registered with the Board but certified to practice. They must attain the following requirements to be employed by the Real estate firm;
- They must attend a full two days course on real estate and will be issued a certificate of attendance
- With the certificate they seek employment either on a ‘Contract of Service’ or ‘Contract for Service’ with a real estate firm
- The real estate firm then, will apply for the Ren Tag with the BOVAEA
- BOVAEA will then certify and designate a REN number & issue a Tag to the REN, only then the REN can be employed by the firm and only then can they represent sellers, landlords, buyers & tenants in the sale and marketing of properties
- What is a REN tag?
REN Tag is an identification tag issued to a real estate negotiator (REN). It contains all the information including their name, photo, IC no, REN No, firm name, firm registration no, quick respond code (QR) and security features. Its mandatory that the tag be worn by the REN at all times during their conduct of business so that the public will be aware that they are dealing with bona fide Negotiators.
- Can a REN use the firm’s company tag instead of a REN Tag?
It is mandatory for all negotiators to wear the REN tag during the course of doing business and it cannot be replaced with any company name tag. It is an offence for someone to imitate and produce something similar to BOVAEA REN Tag.
- How to check or verify whether the REN is certified by the BOVAEA?
The Quick Respond (QR) code can be verified using a smartphone. QR code reader app can be downloaded into your phone from the Play Store. The code reader will show all the negotiators information including their photograph. If in doubt, conduct a search at www.lppeh.gov.my or www.propertyagent.gov.my website under Negotiator Search. Alternatively, call BOVAEA during office hours at 603-22876666.
- What happens if the REN does not have a REN Tag?
Then he/she is an illegal broker. He is not authorised and as such stop dealing with him/her. Report him to the police immediately with full information.
- How do I know whether the REN Tag is a fake one?
Genuine REN Tag contains watermark security features. When you scan the Quick Respond (QR code) using a smartphone, it will feature the negotiator information.
- Any foreigner who wish to work as a Negotiator is required to obtain a work permit from the Immigration Department and only then will the BOVAEA will consider, approve and issue a tag.
- Scale Fees
All fees payable for services rendered, both for sale or letting are stipulated under the 7th Schedule of the Valuers, Appraisers & Estate Agents Rules. Please visit
ADVERTISEMENT AND PROMOTIONS
- Advertisement in newspapers, property portals and signboards?
All advertisements posted by a REN must contain the company E registration no with BOVAEA and REN Number besides their mobile no. Do not respond to any advertisement if it does not contain all these information. It is considered illegal for any advertisement to not follow the requirement above except advertisements by property owners.
- Signboard on lamp post and tree trunks?
These signboards are done by the illegal brokers. REN are not allowed to put-up signboards on lamp post and tree trunks.
- 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. Please 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) who will then suspend and bar the mobile no.
- Can REN sell properties in shopping complexes or exhibition halls?
Yes, they can. Majority of these are primary or new properties or new projects for developers. However, they are required by law to wear the REN Tag at all times.
- REN Name card
Besides the normal company details, the name card shall also display the Firm E registration no and the REN No.
- Do I respond to flyers/leaflets distributed by estate agents to my home or offices?
Flyers or leaflets distributed by negotiators shall contain the company name, firms E registration number and the REN No. Do not respond if the flyers or leaflets do not contain these information.
Flyers are permitted under the following conditions:
- The contents in the flyer shall specify the types of property for sale/rental/lease or wanted.
- The flyer shall produce in a firm’s letterhead which bears the name of the firm, the firms registration number, the office telephone number, address of the firm. It shall carry the signature of the REA. It shall include the negotiator’s name with the REN Number. The flyer must also carry the following statement:-
i. “Persons responding to this flyer are not required to pay any estate agency fee whatsoever for properties referred to this flyer as this firm is already retained by a particular principal”
- Can foreign real estate agents or developer sell their property in Malaysia?
Foreign real estate agents or developers cannot sell property on their own in Malaysia. They are required to engage a local registered real estate firm to market any foreign properties. The local firm is required to make an application with BOVAEA for approval and will be assigned with an approval no which needs to be displayed at all exhibitions and in all marketing collaterals. The local firm’s representatives are required to be present at all times during the exhibition.
- 17. How do I know whether the property being marketed by the agency is approved by the Board?
Any foreign property being approved to be marketed in Malaysia is required to display the BOVAEA approval number, example LPPEH/88/8888/KL. Separate application is required for different venue which is only valid for one month from date of approval.
- Illegal Broker
Any person who acts in contravention of section 22(c) commits an offence under Section 30(i) of the Act and is liable upon conviction to a fine not exceeding RM300, 000 or imprisonment for a term not exceeding 3 years or both.
- Aiding and Abetting
Any person who aids and abets in the commission of an offence under Section 30(j) of the Act, is committing an offence and is liable upon conviction to a fine not exceeding RM300,000 or imprisonment for a term not exceeding 3 years or both.