1. DEFINING ESTATE AGENTS AND NEGOTIATORS
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DEFINING ESTATE AGENTS AND NEGOTIATORS
Persons acting on behalf of the owner/seller/lessor and/or buyer/lessee in dealing with the business of selling/buying or renting property for a fee
Sometimes also known as “broker” or “middle man”
S 2 VAE 81 – means acting or holding out to the public as ready to act, for a commission, fee. Reward or other consideration, as an agent in respect of the sale or other disposal of land and buildings and of any interest therein or the purchase or other acquisition of land and buildings and of any interest therein or in respect of the leasing or letting of land and buildings and of any interest therein
In Malaysia the estate agents can be categorised into 3 :
Registered Estate Agent
Negotiator
Bogus agent
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Registered Agents
- are persons who have completed the necessary study, passed the boards exams, gone through 2 years practical training, has passed the TPC and has a license registered with the Board of VAE.
- The license allows the agents to collect commissions legally
- are regulated and governed by the board subject to rules and guidelines set by the Board.
- required to renew their license yearly
- insured with Professional Indemnity Insurance ( required by the Board)
The status of an agent can be checked with the Board or at the Website.
A registered agent will have prefix E
There are about 2,400 registered agents
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Negotiators
- are not given explicit recognition in the act or rules but are informally recognised by the board as assistants engaged by the registered agent
- a salesperson paid a fee or commission upon completion of a sale or rental
- is trained, managed and supervised at all times by the registered agent
- work under the jurisdiction of a registered agent
- the registered agent is accountable and responsible for the negotiator
- can collect about 40% to 60% of the commission as their fee
- not registered with the board
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4. - not registered with the board - not governed and regulated
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Bogus Agents
- acts like an agent
- not registered with the board
- not governed and regulated
- normally do not have a permanent office
- can be fraudulent
- if caught, can be punished (S30)
- fine not exceeding RM 25,000
- or imprisonment not exceeding 3 years
- or both
- RM500 a day for continuance
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5. DEFINING THE TYPES OF ESTATE AGENCY
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DEFINING THE TYPES OF ESTATE AGENCY
Exclusive Agency
Instruction from principal to only one estate agent to act on his behalf
Principal may make introductions but will leave the closing of transaction to the agent
Principal must pay the agent the agreed fee even if the agent was not the effective cause of the transaction
This type of agency is encouraged by the Board
Sole Agency
Similar to exclusive agency, where a single agent is engaged
However the principal may close deals personally and not obligated to pay the agent
An arrangement can be made to discount fees where the agent played an active role
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6. Sole Joint Agency Joint Agency This is a variation of the Sole Agency
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Sole Joint Agency
This is a variation of the Sole Agency
Here the principal and agent work together as a team
The fee is shared on a pre-agreed formula
Joint Agency
Here more than estate agency is appointed
Only the estate agent that closes the deal is paid
The number of agents appointed is limited
Each appointed agent is aware of the other
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7. Ad Hoc Basis/Open listing
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Ad Hoc Basis/Open listing
- The principal can engage an unlimited number of agents on an ad hoc basis
Fees are only paid on the successful conclusion of the deal
Co-broking
Otherwise known as co-agency
Agents enlist the assistance from another agent
Upon closing of the transaction they will share the fees
In this instance the principal is not party to the arrangement
A more organised form of co-agency is multiple listing
The board is aware of this mode of agency
For both internal ie within the agency or external with another agency
Termination
On agreement by both parties
Due to wrong doing by either party
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