(From left) Estate Agency Practice Committee (EAPC) committee member K Somasundram (representing  MIEA), chairman Eric Lim and committee member SR Tunku Fauzi (representing RISM).

KUALA LUMPUR: An estimated 50,000 illegal real estate brokers are swindling money from naive Malaysians, by pretending to be real estate agents or negotiators.

The latest case occurred last week when a certified negotiator discovered his photograph was printed on name cards under several different companies that were distributed to shop lot owners, whereby the shop owners were tricked into paying fees for rental or sales deposits.

As the regulatory body, the Board of Valuers, Appraisers and Estate Agents Malaysia (BOVAEA) is worried that the number of cases will increase if the problem is not addressed soon.

Estate Agency Practice Committee (EAPC) chairman Eric Lim says that they were shocked by the ignorance showed by property owners on determining the authenticity of the people representing the real estate agency. Real estate agency practice comes under the parliament act and the practice is regulated by law.

"Anyone who is not a registered estate agent or a certified real estate negotiator is breaking the law. Most importantly, anyone using the services of syndicates who claim to be agents without the authority to practice is not protected by law," adds Lim.

An agent is registered after 4 years of exams and training, while a negotiator works for an agent, must attend a two-day course and certified by the board. They are given a REN tag and an identification number.

"We are afraid the number of cases will increase with the desperate property owners trying to cope with the slowdown of the property market. Potential property buyers or sellers have to check the identification tags instead of relying on the name cards alone, to avoid being at the losing end," says Lim.

"There is a Quick Response (QR) code on each tag, so the customers could scan the code with their smartphones to find out the background of the agent, the firm they represent, their REN No and their identity. Simple acts like these could help to ensure a safer experience for all," he adds.

It is sad to see so many people losing money and getting into legal entanglement because they did not ask for the tag. "They are not bothered to check on these things even though they are selling and buying properties valued at hundreds of thousands of dollars," he says.

Illegal brokers are ordinary people determine to make a quick buck without understanding his or her duty to a client or knowledge relating to property. Their modus operandi includes cheating, misrepresentation, profiteering while a large number flee with the deposits.

"It is best to protect yourself and your investment by following the philosophy that 'prevention is better than cure," says Lim.

The Valuers, Appraisers and Estate Agents Act clearly states that those who corporate with an illegal agent can also be fined RM300,000 or face three years imprisonment or both. To help curb the problem, the board will be working with the relevant government agencies to trace and bring these criminals to justice.