Standard 5 2018

MALAYSIAN ESTATE AGENCY STANDARDS

Go here to read the differences from Standard 5 MEAS 2014.

STANDARD 5

TERMS OF ENGAGEMENTS

1.1.0 INTRODUCTION

5.1.1 The terms of engagement given by the client to an estate agency firm dictates the scope of its authority and it is therefore important that such terms are precise in language and should never be ambiguous.

5.1.2 Upon receiving the terms of engagement, the firm is obliged to provide the Client with the required services as stipulated therein. The firm shall take all reasonable steps to ensure pertinent facts concerning the property are well within its knowledge.

5.2.0 STATEMENTS OF STANDARD

5.2.1 Estate agency engagement can be either verbal or written, however firms are encouraged to obtain written terms of engagement.

5.2.2 Terms of engagement can either be in the form of written terms and conditions from the client or written confirmation of agreed terms by the firm.

5.2.2.1 A "written terms and conditions from the Client" refers to a formal and signed letter or document from the client to the estate agency firm.

5.2.2.2 A "written confirmation of agreed terms and conditions by the firm" on the other hand refers to a formal letter or document from the estate agency firm sent to the client and confirmed by the Client.

5.2.3 The estate agent's engagement shall clearly state the firm's name, a clear identification of the subject property, the terms and conditions of the engagement and the intended transaction.

5.2.4 Subsequently to the agreement on the terms and conditions of the engagement and the intended transaction, if there are any variations to the said terms and conditions it shall be agreed upon by the client.

5.2.5 All estate agency firms are encouraged to use the Board's Standard Forms for engagement.

5.2.6 In line with Rule 97 and when obtaining the terms of engagement from the Client, the estate agency firms shall not, where another estate agency firm has been exclusively appointed engaged or appointed engaged as a sole agent, as evidenced by a signboard or any other form of advertisement in any media referring specifically to the property:-

  • 5.2.6.1 solicit for the same business;
  • 5.2.6.2 accept terms of engagement without written verification confirmation from the previous estate agency firm that its appointment has been terminated Client that the Client has not engaged any other estate agency firm on an exclusive or sole agency basis;

5.2.6.3 the appointment firm is required to inform all other firms that it has been exclusively appointed or appointed as sale agent by the client

5.2.7 All firms are encouraged to obtain exclusive agency appointments in writing from the client whenever possible and to point out very clearly to him the rights and responsibilities of each party arising out of the arrangement.

5.2.6.48 all exclusive and sole agency appointments engagements shall specify the period of validity of the appointment engagement.

5.2.8 9 An estate agent must not directly harass any person in order to gain instructions and neither shall he/she repeatedly try to gain instructions in a way likely to cause offence or annoyance to the person.

5.2.9 10 If the Client withdraws his terms of engagement of the firm, the firm must advise the client of any circumstances in which the client may have to pay more than one fee and the probability of any continuing liability on the client.

5.2.10 11 An estate agent shall not give an opinion of value of a property in order to obtain an engagement. An estate agent is only allowed to furnish the selling price based on a comparative competitive market analysis of transacted values in the area or as evidenced in the JPPH/NAPIC Reports.

5.3.0 EXPLANATIONS TO THE STANDARD

5.3.1 Rule 97 reads:-

"A registered estate agent shall not engage in any practice or take any action inconsistent with the agency of another estate agent."

5.3.2 Written terms of engagement can either be in the form of "a written terms of engagement from the Client" or "written confirmation of the terms of engagement by the estate agent".

  • 5.3.2.1 "A Written terms of engagement from the Client" refers to a formal and signed letter or document of engagement from the Client that is addressed and communicated to the estate agent, and
  • "A written confirmation of engagement by the estate agent" on the other hand refers to a formal and signed letter or document that is prepared by the estate agent and sent to the client and confirmed by the Client as to the agreed terms and conditions.

5.3.3 Terms and conditions of engagement refers to the agreed terms and conditions appointing the estate agent whilst terms and conditions of the transaction refers to agreed terms and conditions upon which the property will be purchased, sold, secured for rent or lease or let.

5.3.4 For the purposes of item 5.2.8 9, the term "harass" means acting in a threatening or oppressive manner likely to cause alarm, annoyance and/or distress.

Ref:

Verbatim from Standard 5 of MEAS 2018.

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