The REAL in real estate agents

Erick Kho (right) presenting a token to Lee Chee Leong (center) after the opening of the (MAREC'17) at Setia City Convention Center in Shah Alam. On the left is Lim Boon Ping.

By Yoganeswari Vellusamy

Members of the public using the services of unregistered brokers are at risk of losing their money, said Finance Deputy Minister Datuk Lee Chee Leong.

“To make matters worse, the government also loses out on revenue, as these illegals do not pay the relevant taxes, including the Goods and Services Tax (GST),” he said during the opening speech of Malaysian Annual Real Estate Convention (Marec’17) organised by Malaysian Institute of Estate Agents (MIEA).

Although the number of fraud cases related to illegal real estate agents reported last year has decreased from the previous year, in which 105 cases was reported in 2016 and 180 reported in 2015, the issue remained a serious concern within the industry.

According to the Valuers, Appraisers and Estate Agents Act 1981 (Act 242), individuals that are unregistered real estate agents or firms are prohibited from collecting any fee from property owners when assisting them in sales and purchase transactions. The act is punishable by a maximum three-year jail term, RM3000 fine or both.

“Identifying a real estate agent is easy. A registered real estate agent (Rea) will carry a four-digit Rea number on his official tag, while a real estate negotiator (Ren) will have a five-digit Ren number,” ,” said convention chairman Lim Boon Ping.

“We are not forcing the people to assign registered agents when purchasing a property but keep in mind of the consequences,” he said.

Individuals can verify the Rea and Ren numbers online through The Board of Valuers, Appraisers and Estate Agents Malaysia (BOVAEA) website before ensuing any transactions to avoid fraud cases by illegal agents.

MIEA president Erick Khoo added that the situation created the public’s feeling of distrust for the legal agents.

“Public awareness is needed to stop them from hurting the reputation of registered agents,” Khoo told the reporters during the media conference after the opening of Marec’17.

The event was sponsored by Maybank and Malaysian Resources Corporation Bhd (MRCB).

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