CHAPTER 2

ACTS AND REGULATIONS GOVERNING

THE PROPERTY PROFESSION

PREPARED BY:
SR DR NUR LESYA FIRSYA BINTI JOHAIMI LING,
MRISM
 ACT AND REGULATIONS

Section 2: Registered Estate Agent

A person whose name has been entered under Part III of the Register and to
whom an authority to practice has been issued by the Board under Section 16

Section 22A : Registration of EA

Section 22D : Qualification for registration of EA and

PEA
SECTION 22A: REGISTRATION OF ESTATE AGENTS

a. age of 21 years, sound mind, good character and

has not been convicted of any offence
b. he is not an undischarged bankrupt;
c. he satisfies the requirements of section 22D
(qualification and exam)
d. he has made a declaration in the form and manner
prescribed by the Board;
e. he has paid the fees prescribed by the Board; and
f. he is not under suspension from valuation or
Property management practice nor has his name
been cancelled from the Register
SECTION 22D: QUALIFICATION FOR
REGISTRATION OF EA AND PEA
1) Subject to the provisions of the Act, no person shall be entitled to
have his name entered under Part III of the Register unless he has
been registed as a probationary estate agent under this Act.
2) Any person who has passed the examinations prescribed by the
Board or who has obtained qualifications which the Board
recognizes as equivalent to such examinations may apply to the
Board to be registered as a probationary estate agent.
3) A probationary estate agent shall be required to obtain the
practical experience and to pass the Test of Professional
Competence prescribed by the Board or any equivalent test or
examination recognised by the Board.
4) Where a probationary estate agent has complied with the
requirements of subsection (3), he may apply to the Board to have
his name entered in the Register.
SECTION 2: ESTATE AGENCY PRACTICE

Acting or holding oneself out to the public as ready to act, for a

commission, fee, reward or other consideration, as an agent in
respect in sale or other disposal of land and buildings and of any
interest therein or the purchase or other acquisition of land and
buildings and any interest therein or in respect of leasing or letting
of land and building and of any interest therein.

Section 16 : Authority to practice

Section 22B : Person that can practice EA
Section 22C : Restrictions on EA practice
 Section 16 : Authority to practice
(1) The Registrar shall, upon receipt of a fee prescribed by the Board with the
approval of the Minister, issue to every applicant, whose application has been
approved, an authority to practise in the form prescribed by the Board.
(2) The authority to practise shall, subject to the provisions of this Act, expire on
the 31st of December of the year in which it is issued and shall thereafter be
renewable annually upon payment of the prescribed fee and upon the applicant
satisfying and complying with such conditions as may be prescribed by the
Minister.
(3) A certificate of registration issued under the *Registration of Surveyors Act
1967 [Act 67 of 1967] which before the coming into force of this Act was issued
to a registered Surveyor (General Practice) shall, subject to subsection 17(2), be
replaced by the Board with an authority to practise without payment of the
prescribed fee.
(4) An authority to practise which has been issued with errors or omissions may be
recalled by the Registrar and a fresh one issued without charge.
(5) A duplicate authority to practise may be issued by the Board on application
being made by a registered valuer, appraiser or estate agent and on payment of
a fee prescribed by the Board and such application shall be accompanied by a
statement setting out the reasons for the application.
 Section 16 : Authority to practice (cont.)
(6)A duplicate authority to practise shall be clearly marked ―Duplicate and shall
contain all particulars shown on the original copy.
(7) A registered valuers, appraiser or estate agent—
(a) who is an employee, shall, within one month of any change of employment, notify
the Board in writing of the name, business address and other particulars of his former
as well as his new employer;
(b) who is not an employee, shall, within one month of any change in the name,
business address, partnership, shareholding or directorship of his practice or any
change in the registered valuers, appraisers or estate agents practising under his
employment or under the employment of his firm, notify the Board in writing of the
change and such change shall be entered in the appropriate Register.
(7A) For the purposes of paragraph (7)(b), a notice given by a partner, shareholder
or director of the person concerned shall be deemed to be sufficient compliance with
that paragraph.
(7B) Paragraph (7)(a) shall also apply to all probationary valuers and probationary
estate agents and any changes shall be entered in the Register of Probationary
Valuers/Probationary Estate Agents accordingly.
(8) The Registrar may annually publish and offer for sale copies of the Registers.
 Section 22B : Person that can practice EA
(1) Subject to the provisions of this Act, a registered estate
agent who has been issued with an authority to practise by the
Board shall be entitled to practise his profession and shall be
authorised to undertake estate agency practice.
(1A) Subject to subsection (2), no registered estate agent shall
carry on property management

(2) Notwithstanding subsection (1A), the Board may permit a

registered estate agent to carry on property management:-
(a) if he was permitted to do so before the coming into force of
subsection (1A); and
(b) subject to the same conditions and restrictions that the
Board may have imposed upon him before the coming into
force of subsection (1A)
 Section 22C : Restrictions on EA practice
(1) No person shall unless he is a registered estate agent and has been issued
with an authority to practise under section 16—
(a) practise or carry on business or take up employment under any name, style
or title containing the words “Estate Agent”, “House Agent”, “Property Agent”,
“Land Agent”, “House Broker” or the equivalent thereto, in any language or
bearing any other word whatsoever in any language which may reasonably
be construed to imply that he is a registered estate agent;

(aa) carry on business or take up employment as an estate agent;

(b) display any signboard, or use, distribute or circulate any card, letter,
pamphlet, leaflet, notice or any form of advertisement, implying either directly or
indirectly that he is a registered estate agent;

(ba) offer for sale or invite offers to purchase any land, building and any interest
therein irrespective of whether such land, building and interest is located within
Malaysia or outside Malaysia: Provided that where foreign properties are to be
marketed in Malaysia, such offer or invitation shall be made by or through an
estate agent practising and residing in Malaysia on behalf of a principal
practicing or residing outside Malaysia;
(c) undertake any of the work specified in section 22B; or
(d) be entitled to recover in any court any fees, charges or
remuneration for any professional advice or services rendered as an
estate agent.

(2) Notwithstanding subsection (1)—

(a) an owner of any land, building and any interest therein may sell or
rent, or offer to sell or rent, such land, building and interest;
(b) a licensed auctioneer may sell or offer to sell any land, building
and any interest therein by public auction; and
(c) a holder of a power of attorney in respect of any land, building and
any interest therein, acting gratuitously and for no commission,
fee, reward or other consideration, may sell, purchase or rent, or
offer to sell, purchase or rent, such land, building and interest.
(d) a negotiator may assist the REA in the estate agency practice.
Formation Practice of Firms
Provision of Sec 23 (1) of the Act 1981
No registered valuer, appraiser or estate agent shall
practice valuation, appraisal or estate agency or have the
right to recover in any court any fee, charge or
remuneration for any professional advice or services
rendered by him pursuant to his practice unless he
practices as a sole proprietor of a sole proprietorship, a
partner of a partnership, a shareholder or director of a
body corporate registered with the board, or as an
employee of such sole proprietorship, partnership of
body corporate.
Provision of Sec 23(1A) and (1B) of the Act 1981

A sole proprietorship, partnership and body corporate practicing

valuation, appraisal or estate agency and property management as
they can apply to register with the board.

A sole proprietorship practicing valuation, appraisal or estate agency

and property management with condition:
a) The sole proprietor of the sole proprietorship is registered valuer,
appraiser or estate agency or property managers.
b) Interest as a sole proprietor in sole proprietorship,
c) as all the conditions specified by the board.
Provision of Sec 23(2) of the Act 1981
A partnership or body corporate allow to practice valuation,
estate agency or property management if the satisfy that:

a) All partner of the partnership or directors and

shareholder of the body corporate are :-
iii) In the case of estate agency practice,
A) solely registered Valuers/Appraiser/Estate Agent/
Property Managers.
B) Combination of Registered valuers, appraiser
and estate agents or
C) combination registered estate agents and any
other persons or body corporate.
Steps in registration of Firms
The requirements of the Board of Valuers, Appraisers and
Estate Agents and Property Managers for a person to set up
estate agency firm.

Step 1 - Every person desirous of being for registered to

practice estate agency under section 23 of the Act shall
apply to the Registrar in Form N in the Second Schedule –
rule 25b
Step 2 - Pay prescribe processing fee of RM 75,under rule
25b
Step 3 - Establish company entity as sole proprietor,
partnerships or body corporate Company name and log
approved by the board.
Step 4 – rule 25c, submission to the board, within 30 day to
be replied approves or rejected.
Step 5 – upon approval pay the fee within 90 days from
approval given.

Step 6 - Once the registration fee had been paid by the

applicant, the Registrar shall issue an authority to practice
valuation, appraisal or estate agency as a firm in FORM O in
the Second Schedule. if rejected do it again/appeal

Step 7 - Must operate in business premises

 SECTION 24: CANCELLATION, SUSPENSION AND
ADMONISHMENT
(1) Subject to the provisions of this Part, if a valuer, appraiser or estate agent or a probationary
valuer or probationary estate agent whose name has been placed in the Register or the
Register of Probationary Valuers/Probationary Estate Agents, as the case may be—
(a) has been convicted of any offence involving fraud or dishonesty or moral turpitude;
(b) has been found to have obtained his registration or authority to practice under this Act by
fraud or misrepresentation;
(c) has his qualification under section 18, 22D or 22H withdrawn or cancelled by the authority
through which it was acquired or by which it was awarded;
(d) has contravened or failed to comply with any of the provisions of this Act or of any of the
rules made thereunder;
(e) has not observed any restrictions subject to which he is registered;
(f) has refused or neglected to comply with any order of the Board acting under any of the
provisions of this Act or of any of the rules made thereunder; or
has been found guilty by the Board of any professional misconduct or of any act or conduct
which in the opinion of the Board is infamous or disgraceful, the Board may make an order—
(i) cancelling his registration under the appropriate Part of the appropriate Register;
(ii) suspending his practice for a period not exceeding three years;
(iii) admonishing him and recording such admonishment in the appropriate Register;
(iv) admonishing him or imposing a fine not exceeding ten thousand ringgit or both but
without recording such admonishment or fine in the appropriate Register; or
(v) imposing a fine not exceeding twenty-five thousand ringgit and recording such fine in
the appropriate Register and that he be suspended from practice until the fine is paid.
(vi) Prohibiting him from applying to the Board for registration until all the conditions
specified by the Board have been complied with
(vii)Warning him
(viii)Dismissing the charge
 SECTION 25:REMOVAL FROM REGISTER
(1) There shall be removed from the Register or the Register of Probationary
Valuers/Probationary Estate Agents, as the case may be, the name and
particulars of any registered valuer, appraiser or estate agent or probationary
valuer or probationary estate agent—
(a) who has applied in writing for such removal;
(b)who has died;
(c) who has been certified by the proper authority to be of unsound mind or
has been adjudged a bankrupt;
(d)who has failed to renew his authority to practice within three months of the
expiry thereof; or
(e) whose registration has been cancelled under section 24.
(2) Any person whose name is removed from the Register or the Register of
Probationary Valuers/Probationary Estate Agents shall, within fourteen days
after the date of notification of the Board’s decision by registered post,
surrender to the Board his authority to practise and any person who fails to
do so commits an offence.
(3) There shall be removed from the Register of Firms the name and particulars
of any firm—
(a) which has applied in writing for such removal; or
(b)which has contravened or failed to comply with any of the terms or
conditions of its registration.
(c) Which has beendissolved or deregistered under the law under which it was
incorporated or registered.
(d)Where any of the circumstances specified in paragraphs (1)(ca), (d) and (e)
 SECTION 26: REINSTATEMENT
26 (1) Any person whose name has been removed from the Register
24(1)(i) shall, if his appeal has been allowed, forthwith be
reinstated.
(2) Any person whose practice has been suspended under
subparagraph 24(1)(ii) and who has been admonished under
subparagraph 24(1)(iii)
(3) Any person whose name has been removed from the Register or
the Register of Probationary Valuers/Probationary Estate Agents,
(4) Any person whose name has been removed from the Register or
the Register of Probationary Valuers/Probationary Estate Agents,
as the case may be, under paragraphs 25(1)(a), (c) and (d) may be
reinstated as soon as he has applied to be reinstated and upon
payment of such fees, arrears and charges, and upon satisfying
such other conditions, as may be prescribed by the Board.
 SECTION 27: APPEAL
27. (1) Any person—
(a) who has been refused registration by the Board;
(b) who has been registered but is dissatisfied with any terms,
conditions or restrictions imposed by the Board;
(c) who having been registered is dissatisfied with any order made
by the Board under section 24; or
(d) whose reinstatement under section 26 has been refused by the
Board, may within thirty days of being notified of such refusal,
restriction or order, appeal to the Appeal Board which may
thereupon make such orders as it may deem just or proper
including any directions as to the cost of the appeal.
(2) The Board shall give effect to any order made by the Appeal Board.
 SECTION 28: APPEAL BOARD

28. (1) For the purpose of this Act there shall be

established an Appeal Board consisting of a
person qualified for appointment as a Judge of a
High Court as Chairman who shall be appointed
by the Yang di-Pertuan Agong after consultation
with the Chief Justice of the Federal Court, and
two other persons nominated by the Chairman
from a panel of members who shall be appointed
by the Yang di-Pertuan Agong.
(2)A member of the Appeal Board shall be eligible
for reappointment.
(3)The Board shall provide the Appeal Board with
such secretarial services as to fulfil its functions
 SECTION 29: PROCEDURE OF APPEAL
(1) A notice of appeal referred to in section 27 shall be made in writing.
(2) On receipt of the notice of appeal the President of the Board, shall cause to
be prepared within three months of the receipt of such notice a record of the
proceedings of the Board and a statement setting out the grounds on which
the Board arrived at its decision.
(3) Upon receiving the Chairman of the Appeal Board shall convene a meeting of
the Appeal Board to hear the appeal.
(4) The Appeal Board after hearing the appeal may, on a majority decision,
confirm or vary the decision of the Board.

(5) The Appeal Board shall at its discretion determine its own procedure and the
costs of and incidental to the appeal.
(6) The decision of the Appeal Board shall be final.
THANK YOU