1. 12-Jun-16DDV33321 ETHICS AND CODE OF CONDUCT Every registered estate agent are duty bound to render service to his client with absolute fidelity, and to practise his profession with devotion to the high ideals of integrity, honour and courtesy, loyalty to his country, and also to conduct business in the spirit of fairness and goodwill to his fellow professionals in the real estate industry. No registered estate agent shall, directly or indirectly, allow or agree to allow participation by any person or company, other than a registered estate agent in the profits of his professional work. It is a duty of a registered estate agent to protect the public against fraud, misrepresentation and unethical practices in respect to all real estate transactions.

2. 12-Jun-16DDV33322 A registered estate agent must inform his client of the nature of any business connection, interest or other affiliations he may have in connection with the service to the client. A registered estate agent shall not accept fees from more that one client in any one transaction. A registered estate agent shall not act for one party to a transaction while another registered estate agent from the same firm or related or affiliated firm, is acting for the other party to the same transaction except with the knowledge and consent of the parties concerned. A registered estate agent’s name and signature must appear on all proposals, reports and other documentation prepared by him indicating his status as a registered estate agent. A registered estate agent’s branch offices shall be headed by a resident registered estate agent.

3. 12-Jun-16DDV33323 SCALE OF FEES Sale or Purchase (a) Land and Buildings Maximum fee of 3% (b) Fees for other services such as joint venture, sale of company, property swaps, etc. Maximum fee of 3% (c) Chattels including Plant and Machinery 10 % of the proceeds Minimum fee : As above, subject to a minimum fee shall be RM1,000 per property. The above scale applies to any sale or purchase by way of private treaty, tender or any other mode of disposal or acquisition. For Sale and Marketing of projects by registered estate agents, the fees are to be agreed between the estate agent and the client. The above scale of fees shall not apply to the sale of foreign properties in Malaysia or sale of Malaysian properties in foreign countries.

4. 12-Jun-16DDV33324 Lettings Duration of Tenancy Maximum (Fee equivalent too) – a)Up to 3 years 1.25 months gross rental – b)Exceeding 3 years up to 4 years 1.50 months gross rental – c)Exceeding 4 years up to 5 years 1.75 months gross rental – d)Exceeding 5 years 1.75 months gross rental – e)Exceeding 5 years (without option for renewal) 1.75 months gross rental – f)Exceeding 5 years (with option for renewal) 1.75 months gross rental plus 0.25 months rental for every additional year Minimum fee : As above subject to a minimum fee of 1 month rental. For tenancies less than one year, the fee may be calculated on a pro rata basis. The above scale shall not apply to serviced offices/apartments or any other premises of similar nature. Rent Reviews - 50% of the fees chargeable under lettings

5. 12-Jun-16DDV33325 Additional Claims In addition to the fees stated previously claims may be made for: (a) the cost of printing, plans, copies of documents, lithography, travelling (only where the distance between the estate agent’s office and the property is more than 40 km) and other expenses actually incurred; (b) the cost of media advertisements, signboards, brochures and other promotional material. Note : The above additional claims may not be incurred by the registered estate agent without prior concurrence of the client.

6. 12-Jun-16DDV33326 SETTING UP A REA OFFICE Must be headed by a registered agent inclusive branch office Operate as a proper office – Area deemed suitable for office – Business premises – Not residence – Not temporary site office or project office of a project Must get approval from the Board Have proper signages – Name and registration numbers – Comply with LA and Board

7. 12-Jun-16DDV33327 Must display practicing certificate Have proper administration system – Register of employees and negotiators – Register of listings – Register of prospects/property wanted – Record of sales and lettings – Proper accounting system – Proper clients accounts Have adequate indemnity cover