What are the main CHANGES in Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (amended 2017) that affect Estate Agency Practice?
A.
Refer to updated write up on major changes to VAEP Act, 1981 at the link below:
The piece of legislature VAEA Act 1981 was amended and passed in Dewan Negara on 21 August, 2017 to be called VAEP 1981. The Bill that enabled it was VAEA (Amendment) Act 2017, and come to force on 2nd Jan, 2018.
*The Act — now known as the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 — was passed last October and gazetted on Jan 2, 2018. It was previously known as the Valuers, Appraisers and Estate Agents Act 1981. The main change is the inclusion of Property Managers as a NEW REGULATED PROFESSION under this ACT. Read more on Property Manager here.
According to the report, there are currently 5,000 professionals in the business are still not registered.
“We want to ensure that after the timeframe given, all of them would conform to the Act,” Zailan said, adding that only 1,200 practitioners are already registered.
BOVAEP board member Kamaruzaman Jamil said that unregistered practitioners who fail to comply within the stipulated timeframe can be fined up to RM25,000 and barred from practising within the industry."
However, this article is about the changes that affects the Estate Agency Practice. The key points in the amendment which affects the Estate Agents are below:
1. Better Definition
S.2 Interpretation
"Estate agency practice" has been deleted and inserted this definition in the key Section 22B Estate agency practice.
S.22B Estate agency practice
(1) ... no change
(1A) A person undertakes estate agency practice if he acts as an agent, or holds himself out to the public or to any individual or firm as ready to act as an agent, for a commission, fee, reward or other consideration -
(a) in respect of any sale or other disposal of land and buildings and of any interest therein;
(b) in respect of any purchase or other acquisition of land and buildings and of any interest therein;
(c) in respect of any leasing or letting of land and buildings and of any interest therein;
(d) in making know of the availability of land, building, or any interest therein for such sale or disposal, purchase or acquisition, or leasing or letting referred to in paragraph (a), (b) or (c), as the case may be; and
2. Included tenancy administration as NEW area
[NEW TO THE ACT]
(e) in respect of any tenancy administration including rental collection, payment of outgoings, arrangement for minor repairs and handing over and taking over the possession of a property of any land and buildings and of any interest therein.
3. The word "Consultant" is now included
In S.22C - Restrictions on estate agency practice, a new term is added to the restricted list of terms used to the profession.
This is particularly crucial as in the industry, many unlicensed brokers or sales personnel disguise themselves under various investor groups who call themselves "Real Estate Consultants" or "Real Estate Agency Consultants".
(1) No person shall unless he is a registered estate agent and has been issued with an authority to practise under section 16 -
(a) practise or carry on business or take up employment under any name, style or title containing the words "Estate Agent", "House Agent", "Property Agent", "Land Agent", "House Broker"...
"Real Estate Agency Consultant"
or the equivalent thereto, in any language or bearing any ...
4. Position of NEGOTIATOR
This has been much delay. The role of REN has never mentioned in the Legislation before and I have written article on this issue - see Agent's agent here. So, this new inclusion has put the foothold of NEGOTIATOR as a part of the LAW! Therefore, it would be something permanent in the future!
**My earlier prediction that the role of NEGOTIATOR will be replaced with increased PEAs - is now debunked.
Now, let us see how it is added to the ACT.
S.22C Restrictions on estate agency practice
(2) Notwithstanding subsection (1) -
[NEW SUBSECTION]
(2) (d) a negotiator may assist the registered estate agent in the estate agency practice.
Which means, despite saying that Section 22C (1) the restrictions, there are some exceptions to this estate agency practice, see Exceptions to Estate Agency Practice here.
This includes:
(2)(a) Owner himself
(b) licensed auctioneer,
(c) holder of Power of Attorney, and
now (d) Negotiators (newly added).
However, the wording used exactly is:
"assist the REA in Estate Agency Practice" which means it is NOT that a Negotiator can practice on his own.
This subsection (2)(d) is further given definition of "Negotiator" as in a new subsection of (2A) below.
(2A) For the purpose of paragraph (2)(d), "negotiator" means a person who is employed by a registered estate agent to assist him in the estate agency practice.
Lastly,
5. FOREIGNER can practice if qualified
S.22D Qualifications for registration of estate agents and probationary estate agents.
(1) to (5) defined what are qualification for registration, and (5) has been removed.
Other less important amendments are:
The use of "Registered Probationers" to include "Registered PV, PEA and PPM".
Ref:
Valuers, Appraisers, Estate Agents (Amendment) Act 2017
https://themalaysianreserve.com/2018/01/12/property-managers-given-year-register-bovaep/
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