Registered Estate Agent FAQ

Anyone who is a Malaysian citizen or Permanent Resident (PR) of Malaysia and having met the prescribed qualifications and experienced is entitled to register themselves with BOVAEA. The prescribed qualifications are according to the list as stated in the website (www.lppeh.gov.my).
 
Having attained the qualification, the person must register himself as a Probationary Estate Agent and undergo a two (2) years post practical training with a registered estate agent and maintain a work diary. Having fulfilled the above, he has to submit two practical tasks and to be interviewed by Board panel (called Test of Professional Competence). After passing the TPC, s/he shall then apply to register himself with the Board where an Authority to Practice Estate Agency called Form I will be issued. He is then called a registrant or registered person or a real estate agent (REA).
Anyone who is registered with the Board as mentioned above is entitled to set-up a real estate agency firm. The firm can be either operated as a sole-proprietor, partnership or body corporate (Sdn Bhd). For sole-proprietor, the proprietor of the firm must be a registered person with BOVAEA. For partnership, both the partners must be registered person. For body corporate, at least two of the directors must be a registered person. Any of these set-up as approved by the Board are called the registered firm.
Yes, non-registered person/s or corporation is allowed to own shares but not exceeding 49% equity of the firm. To allow this to happen, a holding company must be established which must be 100% owned by the registered persons only. This holding company is then required to own not less than 51% of the registered firm. A majority of the directors in the registered firm must be a registered person. (Example, if the registered firm has 5 directors, 3 of them must a registered person)
There is no limit on the number of offices but every office has to be registered with the Board. Each office must be managed by a Resident Manager who must be a registered person.
Decently maintained premises to be used as business premises. It should have a separate main entrance to the premises being occupied as a registered office. Shared business centre or virtual office are not allowed to be used as a registered office.
Any set-up of sales gallery or training centre shall obtain prior written consent from BOVAEA. However, if real estate transaction is allowed in the premise being used as sales gallery or training centre, it must be registered with BOVAEA and a Resident Manager is required to manage it.
Each registrant can hire a maximum of 20 RENs. Once the Registrant achieved the maximum 20 RENs. An applications can be made to BOVAEA to increase to a maximum of 30 RENs (subject to BOVAEA approval based on previous track record). If the firm has more than one real estate agent (REA), then the numbers can be multiplied accordingly.

The firm shall immediately notify BOVAEA in writing who normally grants a period of 3 months to find a new Registrant. If no replacement is found and further appeal to BOVAEA is rejected, the branch has to be closed or leave operation.

If no replacement was found within 3 months from the date of resignation, the negotiator has to resign from the company.
When a negotiator resigns or been terminated, he is required to surrender his REN Tag to the firm, who shall then surrender it to BOVAEA. Anyone who fails to return the REN Tag to BOVAEA will be blacklisted and no renewal or reissuance of the tag will be made.
Not necessary if s/he is merely doing paperwork or coordination and supporting work. However, his contact details shall not appear in all the marketing material including signboards and advertisement.
There is no provision for probationary REN. Any REA employing anyone other then the Certified REN is committing an offence.
All advertisement posted by REN must contain the Firm E registration number, Firm telephone number, Firm name and REN No besides their mobile no. Action can be taken if signboards don not follow this rule.
Absolutely Yes. Take a photo of the signboard and send it to BOVAEA. It is important to indicate the street name, date and time including your name and contact no. BOVAEA will verify it before sending it to Malaysia Communication and Multimedia Commission (MCMC). MCMC will then suspend and bar the mobile no.
Every registered firm is required to maintain a Clients Account. Every registered firm that holds or receives client’s money shall without delay pay such money into the Clients Account. All monies in the Clients Account are held by the Firm as stakeholder for their clients.
Every registered firm is also required to purchase a Professional Indemnity Insurance to cover themselves against any negligence. The quantum or sum insured depends on their business volume or turnover.
Any registered REAs or firms who commit any wrong doings will be subjected to BOVAEA disciplinary action which includes fines, suspension or deregistration.

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