Real Estate Tips #1: 8 reasons why you should always engage a Registered Estate Agent

Over the years chairing the Malaysian Institute of Estate Agents Johor Branch, i always get dumbfolded everytime i receive complaints from the public against illegal real estate brokers. Huge question occurs to me, why do people still sourcing for services from the illegal brokers while there are so many registered estate agents around in the market?

After much contemplation, I find *education* is the main cause. Here i am, going to share with you all why you should always choose a registered estate agent (REA):

(1) a REA is a professional personnel recognized and governed by the Board of Valuers, Appraisers and Estate Agents Malaysia (known as the Board for the following column), under the Ministry of Finance.

(2) a REA is a certified professional by the Board, who has undergone 12 papers examination (minimum 2 years), and minimum 2 years of Test of Professional Competence training under a registered person. Therefore, for a REA to get registered, he/she shall need a minimum 4 to 5 years of professional training.

(3) a registered estate agency is made compulsory by the Board to indemnify all clients against negligence through Professional Indemnity Insurance. Hence, your earnest deposit or client's money will always be indemnified and safe with us. Do not attempt however, to write the cheque in favours of the individual negotiator, you shall write all payment ONLY in the COMPANY'S Name.

(4) a REA has to regularly improve themselves through what we call a Continuous Professional Development (CPD) programme on a yearly basis, in order to renew our licence. Therefore, you can be assured that all REA shall always have the most up-to-date property information and knowledge to serve you.

(5) a REA is bound to work under the professionalism framework set by the Board, and to follow the ethical conduct, rules and regulation, for which, any adverse actions or omissions will result in diciplinary actions from the Board against the offender.

(6) a REA is accountable to all their negotiators' (real esate sales personnels) conduct, henceforth, you can always rest assured that all negotiators are well controlled and managed by the REA. Should there be any issues arrise with the negotiators, you can always bring the matters up to their principal, i.e. the REA.

(7) you will NEVER be overcharged by a REA because the professional fees schedule has been clearly spelled out in the Valuers, Appraisers and Estate Agents Act.

(8) All REAs belong in a big family, sometime we do compete, but most often than not we are actually co-operating amongst ourselves (co-agency) in order to sell/rent out your properties in the best price and shortest time possible.

So, why still use an illegal broker where there's no guarantee on the services rendered and security against your money?

Meanwhile, some of you might start wondering, how do you differentiate between a REA and an illegal broker? I'll answer to this question on my next post.