COVID-19 MCO: MIEA Concerns and Impacts on Real Estate Market, Agents, and Negotiators


MIEA Concerned About MCO Impact on Real Estate Agents/Negotiators

The Malaysian Institute of Estate Agents (MIEA) is worried over the welfare of about 25,000 real estate agents/negotiators. The Movement Control Order (MCO) has brought the real estate business to a stop and the MIEA is unable to help home buyers in taking vacant possession of their properties, do any viewings, or physically list any properties for sale or rental.

MIEA’s President, Lim Boon Ping, has made calls to the Government to:

  • Place in abeyance the collection of Sales and Services Tax (SST) for real estate transactions until the end of the year – to help sellers from having to incur additional costs
  • A stimulus package – e-hailing & subsidies for those earning less than RM2,000 and households below RM4,000.
  • A segment of the COVID-19’s Special Relief Facility for the 1,300 registered real estate firms – to keep them afloat and avoid retrenchment.

Source: News Straits Times

Overall Real Estate Market Hit Hard by Coronavirus

Covid-19 has brought the whole world to a standstill, and the property market is no exception.

What will be affected?

  • Retail segment – tourist zones have been experiencing sales decline and retail outlets in malls may be forced to close due unsustainable businesses.
  • Commercial investment – profit recycling process could be interrupted as institutional investors move more cautiously during uncertain times.
  • Disruptions in the residential transaction – difficulties in conducting property viewings and title searches. Buyers and sellers adopt a wait and see approach as people avoid showrooms and sales galleries.

Source: News Straits Times

Property sales could move than halve during the MCO period

MIEA’s President Lim Boon Ping said the sale and purchase (S&P) agreements for property transactions cannot be carried out during the MCO period as Malaysian laws require physical signatures.

“Digital signature in property transactions is not admissible evidence in court. If you can’t go to the law firm, where the lawyers witness you personally signing the document, there cannot be any S&P agreement done,” he told SunBiz.

When there is no S&P agreement, there will be no sale; it is estimated that this will impact property sales by more than 50%. However, it won’t stop people from buying and selling. They may confirm (the property purchase) today, pay the deposit, but the S&P agreement can only be signed after the MCO.

Source: The Sun Daily

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