Standard 2 2018

MALAYSIAN ESTATE AGENCY STANDARDS

Go here to read the differences from Standard 2 MEAS 2014.

 

STANDARD 2

REAL ESTATE NEGOTIATORS

2.1.0 INTRODUCTION


2.1.1 Negotiators are salespersons who play a vital role in real estate agency transactions and the manner in which they represent the estate agency firm, and the profession, is important. As such, the estate agent shall ensure that his representative Negotiators are knowledgeable and have the necessary skills, and temperament, to represent all parties to a transaction, in a professional manner.

2.1.2 Negotiators shall include Real Estate Negotiators (RENs) and Probationers who shall be under the immediate and direct supervision of their respective estate agents.

2.1.3 The Board requires the estate agents to ensure that his negotiators conduct the practice of estate agency in full compliance with the provisions of the Act, Rules, Standards, directives, circulars, guidelines and decisions of the Board.

2.1.4 Any offences or wrong-doings committed by Negotiators shall be recorded by the Board in the appropriate Record of Complaints for the Board’s, or subsequent hiring estate agency firms’, reference and evaluation of the seriousness of such offences/wrong-doings for each respective Negotiator’s renewals and/or employment/engagement, respectively.

2.1.5 In any disciplinary action(s) against an estate agent, a plea in mitigation, founded on the claim that the estate agent was unaware of the wrongful actions of his Negotiator(s) under Estate Agency Practice, will not be accepted by the Board and neither will it be used as a defence by the estate agents. Negotiators may be called in to attend the Complaint Investigation Committee (CIC) inquiries.

2.1.6 The Board reserves the right to cancel, suspend or refuse certification of any REN, or registration to any registered person(s), based on grounds of non-compliance to any provisions of the Act, the Rules, standards, directives, circulars, guidelines and decisions of the Board.

2.2.0 STATEMENTS OF STANDARD

2.2.1 Negotiators are salespersons employed/engaged, by estate agent’s Firm, to assist the respective estate agent(s), in the conduct of estate agency practice, to carry out their Clients’ instruction:-

2.2.1.1 To list, market and negotiate, the terms and conditions of sale, purchase, let or lease properties; and/or

2.2.1.2 To assist prospective parties to procure, rent or lease properties; and/or

2.2.1.3 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 any property for which the estate agency firm has been engaged; and

2.2.1.4 To conclude the transaction(s) in a professional manner.

2.2.2 An estate agent shall:-

2.2.2.1 Maintain a register of his Negotiators including latest details such as their mobile phone numbers, residential address, dates of employment/engagement by the estate agency firm and dates of their certification (RENs)/registration (Registered Persons) by the Board and/or dates of their termination of services by the estate agency firms; and

2.2.2.2 Ensure that the Negotiators and Registered Person (if any), employed or engaged under him, must be registered with the Board via the estate agency firm, whereby the Board shall issue to the Negotiators their respective REN Tags, or Registered Persons their respective Authority Cards, which must be worn by the Negotiators and Registered Persons at all times during the course of conducting estate agency practice; and

2.2.2.3 Ensure, at the point of hiring that:-

2.2.2.3.1 He does not employ/engage more than the number of Real Estate Negotiators (RENs) perscribed by the Board; and

2.2.2.3.2 His Negotiators shall be employed or engaged on a full-time basis and work for only one estate agency firm, either on an employment agreement (Contract of Service) or on a contractual agreement (Contract for Service); and

2.2.2.3.3 Foreigners, if any, shall have a valid work permit before they can be employed/engaged by the estate agency firm.

2.2.2.4 Ensure that his Negotiators work only under his direct supervision.

2.2.2.5 Ensure that the commission payable to his Negotiators shall not exceed the maximum prescribed by the Board.

2.2.2.6 Provide adequate training to his Negotiators to have the competency and skills to represent the firm professionally in order to ensure their display of positive characteristics in dealing with the public; and

2.2.2.7 Ensure that if he engages any Negotiators who have left their previous estate agency firms that he must apply afresh to the Board with the prescribed fees using the prescribing form(s); and

2.2.2.8 Ensure that his Negotiators, whose services have been terminated by their estate agency firms or, who wish to leave their estate agency firms, shall surrender their REN Tags/Registered Person’s Authority Card to their respective estate agency firms and the Board shall be notified in writing of such termination/resignation; and

2.2.2.9 Notify the Board of any changes, in his Negotiators’ personal details including their mobile numbers and/or in the status of his Negotiators’ employment/engagement, within two (2) weeks from the date of such occurrences.

2.2.3 An estate agent shall ensure that his Negotiators negotiating on behalf of the estate agency firm:-

2.2.3.1 Do not sign any contractually binding documents on behalf of the estate agency firm including the offer letter, engagement letter, co-agency letter and flyers; and

2.2.3.2 Shall be adequately acquainted with all material facts of the property in discussion; and

2.2.3.3 Do not place signage on properties that are not listed with the estate agency firm, or in any undesirable places; and

2.2.3.4 Do not misrepresent on the nature of the estate agency firm’s engagement of the properties listed including advertising as exclusive agent(s) on signage and in other marketing material; and

2.2.3.5 Do not, when offering a property for sale, purchase, let or lease, quote a listing price different from that agreed upon with the Client; and

2.2.3.6 Shall furnish to their respective parties information pertaining to the property, including the probable length of the transaction; and

2.2.3.7 Who have any interest, direct or indirect, in any property that is listed with the estate agency firm must immediately disclose their interest in the property to the estate agency firm and to the Client or the Prospect; and

Superseded by Rule 88

2.2.3.8 Shall avoid anything that may tend to mislead a party not represented by them.

To refer to Standard 5.3.0 Explanations of Standard and also in Rule 97.

2.2.4 Whilst Negotiators may perform some or all of the necessary negotiations in an estate agency transaction, an estate agent shall remain responsible to his Clients for carrying out their estate agency instructions.

2.3.0 EXPLANATIONS TO THE STANDARD

2.3.1 The Standards make it clear that at all times Negotiators shall assist estate agents in estate agency practice and shall be under the direct control and supervision of estate agents.

2.3.2 These amended Standards supersedes the Board’s previous Circulars namely Circular 10/95, Circular 11/96 and Circular 2/98.

2.3.3 Circular 1/2013 – Mandatory Salary Requirements.

Ref:

Verbatim from Standard 2, MEAS 2018.