In order to protect the property buyers who are at risk of losing their money, and to avoid jeopardising the professionalism and accountability of the real estate industry in Malaysia, foreign real estate agents or developers are required to engage a locally registered real estate agent or firm to market any property.
What are the current real estate issues in Malaysia?
Over 100,000 real estate agents are operating without a licence in Malaysia and the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) together with the police are tracking them to protect the local property market. With more than 50 real estate frauds reported monthly, the number of illegal and unregistered real estate brokers are increasing.
- Foreign real estate agents or developers are selling properties on their own in Malaysia.
- Foreign agents (from countries such as Singapore, Hong Kong and Japan) have been advertising Malaysian properties for sale, both locally and abroad.
- Foreign developers are selling properties to Malaysians without getting BOVAEP approval.
What are the consequences for those who transact properties in Malaysia illegally?
Anyone operating illegal and unregistered real estate transactions will face:
A fine not exceeding RM300,000; or
Imprisonment for a term not exceeding 3 years; or
Both, and shall be liable to a further penalty of RM1,000 for each day during the continuance of such offence.
This also applies to any person who aids and abets in the commission an offence under this Act*.
Malaysian Institute of Professional Estate Agents and Consultants (MIPEAC) urges the public to lodge reports on any activities undertaken by illegal real estate brokers to effectively curb the problem.
Act*: Act 242 (Part VIII, Section 30) states that any person who acts as an estate agent whether the primary or principal object of his business is an estate agency or impersonates a registered estate agent.
Everyone deserves a safe and secure home transaction. You can trust Ohmyhome when buying, selling, or renting your property in Malaysia.
Call +60 16-299 1366 to learn more now.
Source: New Straits Times