lecture 4 - registration of firms

7/30/2019 Lecture 4 - Registration of Firms

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10/20/11 EMT654 - Professional Practice II 11/4/2013 1EMT612 - Estate Agency


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10/20/11 EMT654 - Professional Practice II 2

1.0 Registration of Estate AgentProvision of Sec 22A (1)of the Act 1981

Any person has desired to be registered real estate agents under Part III of the

Register have to submit application to the Board and prove to its satisfaction

that:-

a) Attained 21 years old and is sound mind. Good character and has not beenconvicted of any offence involving fraud, or dishonesty or moral turpitude

during the 5 years immediately preceding the date of his application;

b) He is not discharged bankrupt

c) Satisfied the requirement of sec 22D

d) Has made declaration in the form and manner prescribed by the board, and

e) Not under suspension from valuation or estate agency practice nor his name

has been cancelled from the register.

1/4/2013 2EMT612 - Estate Agency


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1.0 Registration of Estate Agent

Provision of Sec 22A (2)of the Act 1981

Any person who applies within 12 months from the date of the

coming into force of this Part for registration under the register

of Estate Agents shall be entitled to have his name so registeredif he proves to the satisfaction of the board that :-



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1.0 Registration of Estate AgentBased on the provisions of the proviso under this act, any registered

estate agent is allowed to practice estate agency profession.

(1A) clarifies subject to the provisions of subsection 2, no estate

agent registered to practice allowed for property management

based on the provisions of section 22B (2) allows a registered

agent to practice property management practices if

1. has been given permission by the board to practice before the

effect of subsection (1A)

2. 2. Subject the same conditions and Restrictions that the board

may have approval before the effect of subsection (1A).



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Based on the provisions of the proviso under this act,

The implementation of estate agency Based on the provisions under

section 22C (1), allows registered estate agent to:

a) business or employment practice estate agency withappropriate names containing words such as estate agents,

house brokers, property agent.

b) display any signboard, Distribute / Circulate card, letter,

brochures, pamphlets, leaflets, notice or any form ofadvertisement, implying directly or indirectly.

c) undertake any work specified under section 22B.

d) entitled to recover any fees, charges or remuneration for any

professional service1/4/2013 5EMT612 - Estate Agency


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Based on the provisions of the proviso under this act,

The implementation of estate agency based on the

provisions under section 22C (2), allows other parties

are allowed to practice estate agent estate agency:

1. land / building owners to sell or rent

2. Licensed Auctioneer through public auction, and3. Power of attorneys holder who sell, purchase or rent

which do not charge any commission, fee, reward etc

upon securing transaction.1/4/2013 6EMT612 - Estate Agency


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Provision of Sec 22A (2)of the Act 1981



of Estate Agents shall be entitled to have his name so registered

if he proves to the satisfaction of the board that :-



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Practice of Estate Agent

Provision of Sec 22C (2)of the Act 1981



of Estate Agents shall be entitled to have his name so registered

if he proves to the satisfaction of the board that :-



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1.0 Qualification of Estate Agent

The provision of sec 22D of the Act

1) A person has been registered as a probationary estate

agent under the Act.

2) Any person who has passed the examinations prescribed

by the Board or who has obtained qualifications which the

Board recognises as equivalent to such examinations.

3) A probationary estate agent are required to obtain the

practical experience(PE) and to pass the Test of Professional

Competence(TPC) as prescribed by the Board or any

equivalent test or examination recognised by the Board.1/4/2013 9EMT612 - Estate Agency


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1.0 Qualification of Estate Agent

The provision of sec 22D of the Act (Contd)

4) A probationary estate agent has complied with the

requirements of act, he may apply to the Board.

5) A Malaysian citizen, unless if otherwise he is or has

been a registered estate agent before the coming into

force of this section.



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1.0 Formation 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 recoverin 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.



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Provision of Sec 23(2) of the Act 1981

A partnership or body corporate practicing valuation,

appraisal or estate agency, as the case may be, shall notbe registered by the board Unless :

a) All partner of the partnership or directors andshareholder of the body corporate are :-

i) valuation practice, solely registered valuers

ii) appraisal practice, solely registered appraisers

iii) estate agency practice, solely estate agents1/4/2013 12EMT612 - Estate Agency


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Provision of Sec 23(2) of the Act 1981 (Contd)

b) The shares in the partnership or the body corporate are

held :-i) valuation practice, solely registered valuers

ii) appraisal practice, solely registered appraisers

iii) estate agency practice, solely estate agents

c) It satisfied all the conditions specified by the board



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Offenses which may be subject to disciplinary action

by the board:Subject to the provisions of Sec 24(1), if a valuer,appraiser or estate agent

or a probationary valuer or probationary estate Agent or 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 such as froud or dishonesty ormoral turpitude.

b) Misrepresentation or fraud in obtaining authority/registration of

practice

c) His qualification under sec 18 or 22A has been cancelled by the

authorityd) Failed to comply with the any provision of the act.

e) Neglected to comply any order by the Board acting under any

provision of the act.

f) Found guilty by the Board of any professional misconduct.



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1) Every person desirous of being registered as a valuer, estateagent, probationary valuer or probationary estate agentunder the Act shall apply to the Registrar in :

a) Form A Valuer

b) Form B Estate Agent

c) Form A1 probationary valuer

d) Form B1 probationary estate agent

2) All such applicant shall accompanied by the processing fee prescribed inthe Third Schedule.


1.2 Registration of Estate Agent (Rule 17)



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1) Within of 28 day upon submission to the Registrar, Registrar shall:

a) Submit the application to the Board,or

b) deliver to the member of the Board

2) The Board will decide upon application within 90 days of the date submission of

the application.

3) The delivery under the subparagraph (b) of paragraph (1) of copy an application to

a member of the Board;

a) by handling personally to the member

b) leaving in the members business premises or office partner or employee

member, the members employers and employers employee.4) The period of 90 days specified in paragraph (2) shall begin 28 days after the

application is received by the Registrar.


2.0 Submission to the Board (Rule 18)



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2.1 (Contd)



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3.0 Registration of Firms



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Rule 25B - Application for registration

l) Every firm desirous of being for registered to practice valuation, Appraisal or

estate agency under section 23 of the Act shall apply to the Registrar in FormN in the Second Schedule.

2)Every application shall be accompanied by the processing fee as prescribed in

the Third Schedule.

3) In the case of a body corporate incorporated under the Companies Act 1965

an application shall be accompanied by a copy of the memorandum andarticle association.

4) Partnership accompanied by a copy of partnership agreement.





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Rule 25C - Submission to the BOVAEA

(1) If a registrar satisfied the application as under rule 25B,

satisfies Section 23 of the Act, the registrar shall within 30 days :

a) submit the application to the Board, or

b) cause a copies to every member of the Board.

2) Board will decide within 30 days.


3.1 Registration of Firms (Contd)



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3.1 Registration Firms - Fees25F. Registration Fee1)The succesfull registration firms of application, within 90 days of

the date notification, require to pay the registration fee as

prescribed in the Third Schedule.



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25D. Consideration of application

(1) Once the Board has satisfied with the application under rule 25B base on the

following matters:

a) satisfies the ownership requirement under Sec 23 of the Act.

b) the applicant satisfies the requirements as to its specified in the rule 25K.

c) the particular documents submitted by the applicant to the Board.

2) If he Board not satisfied, the Board shall return the application to therespective applicant for:

a) re-submitted with amendment.

b) with the necessary particular document which need for amendment.





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25E. Notification of Boards decision.

(1) The Registrar shall notify to the applicant by ordinary post within 30 days of

the date of decision made.

25G. Authority to practice

1) 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 firmin FORM O in the Second Schedule.





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Prepared by: Mohamad Isa Abdullah

Department of Estate Management

Faculty of Architecture Planning & Surveying,

University Technology MARA, Shah Alam


lecture 4 - registration of firms

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