News & Articles Illegal Agents Take More Than 3 Per Cent In Transaction Fee -- MIEA
Illegal Agents Take More Than 3 Per Cent In Transaction Fee -- MIEA
10 Mar 2015
KUALA LUMPUR, March 10 (Bernama) -- Illegal real estate agents take more than three per cent in transaction fee, said Malaysia Institute of Estate Agents (MIEA) president, Siva Shanker.
Siva said those buying properties from the non-registered real estate agents would end up paying more than what they were supposed to.
"For example, when a client wishes to sell his property for RM1 million, the legal real estate agents will inform him of the actual value. If it is RM1.1 million and the standard fee of three per cent fee will be RM33,000.
"Illegal real estate agents will not tell the owners the actual property value and would take more than the standard fee," he told Bernama recently.
He said based on the reports gathered by MIEA, there were up to 30,000 illegal real estate agents compared to the 16,000 legal agents.
To make matters worse, he said, the registered real estate agents would pay the six per cent Goods and Services Tax from Apr 1, but the illegal ones did not have to, making the government also victims.
"So far no action has been taken against these illegal real estate agents even though the Valuers, Appraisers and Estate Agents Act 1981 has been implemented.
"We hope the government would look into the matter and take action against them," he said.
Under the Act, an illegal real estate agent, if found guilty, could face three years in prison and a fine of RM300,000 or both.
Siva said those who wanted to buy a property must look for the legal estate agents who would have the 'Real Estate Negotiator' tags issued by MIEA.
He said real estate agents must also raise their standards of practice to outdo the illegal estate agents.
"Let us set higher standards of professionalism so that no one will ever think of going to a non-registered estate agents," he said.
Anyone seeking to be registered as a real estate agent is required to study for three years and pass 12 papers before they are awarded a diploma.
Then, they have to practise for two years under a registered real estate agent before he or she can obtain a practising certificate.
-- BERNAMA
Siva said those buying properties from the non-registered real estate agents would end up paying more than what they were supposed to.
"For example, when a client wishes to sell his property for RM1 million, the legal real estate agents will inform him of the actual value. If it is RM1.1 million and the standard fee of three per cent fee will be RM33,000.
"Illegal real estate agents will not tell the owners the actual property value and would take more than the standard fee," he told Bernama recently.
He said based on the reports gathered by MIEA, there were up to 30,000 illegal real estate agents compared to the 16,000 legal agents.
To make matters worse, he said, the registered real estate agents would pay the six per cent Goods and Services Tax from Apr 1, but the illegal ones did not have to, making the government also victims.
"So far no action has been taken against these illegal real estate agents even though the Valuers, Appraisers and Estate Agents Act 1981 has been implemented.
"We hope the government would look into the matter and take action against them," he said.
Under the Act, an illegal real estate agent, if found guilty, could face three years in prison and a fine of RM300,000 or both.
Siva said those who wanted to buy a property must look for the legal estate agents who would have the 'Real Estate Negotiator' tags issued by MIEA.
He said real estate agents must also raise their standards of practice to outdo the illegal estate agents.
"Let us set higher standards of professionalism so that no one will ever think of going to a non-registered estate agents," he said.
Anyone seeking to be registered as a real estate agent is required to study for three years and pass 12 papers before they are awarded a diploma.
Then, they have to practise for two years under a registered real estate agent before he or she can obtain a practising certificate.
-- BERNAMA
Source: BERNAMA