Find Out The Roles And How To Differentiate A REN And REA

A real estate negotiator (REN) and real estate agent (REA) are qualified professionals with appropriate accreditation to work in the industry. A real estate agent (REA) is not the same as a real estate negotiator (REN) in Malaysia.

1. What is the difference between a Real Estate Agent (REA) and a Real Estate Negotiator (REN)?

Real estate agent (REA)

A Real Estate Agent (REA) can own and operate his/her own real estate agency and can employ up to 50 real estate negotiators to assist with the provision of real estate services. These include selling, leasing or searching (buying) a property for clients.

Given their seniority, a Real Estate Agent (REA) is required to possess the necessary academic qualifications and meet the minimum experience, standards and expertise set by BOVAEA. This includes the Real Estate Diploma Course, a comprehensive set of examinations where there are 12 papers altogether. Applicants will have to obtain a pass for all 6 papers in Part 1 before being allowed to proceed with Part 2.

The exams will be followed by 2-year working experience with an existing agency as a Probationary Estate Agent (PEA) and finally sitting for the oral test of professional competence (TPC). Detailed information pertaining to the procedure involved can be found at the BOVAEA official website.

Once completed, a REA will have his/her name on the Board’s list as a registered estate agent. A REA will also have to apply for a license to set up his/her own agency. A REA will have to carry a formally issued ID tag. This blue-coloured tag will bear the agent’s and agency names as well as an E number (E XXXX).

Real estate negotiator (REN)

A Real Estate Negotiator (REN) is employed by a registered estate agent. Since they do not manage the business themselves, they are not required to obtain a registration under BOVAEAP. However, these individuals must attain the necessary certification before they are allowed to practise. Every REN must attend a full 2 days course, called the Negotiator Certification Course (NCC), in which they will be taught the basics of estate agency as well as the related laws, Acts and standards pertaining to the industry.

Upon completing the course, they will be issued with a certificate of attendance, with which they can look and apply for employment with a registered agency. The employer (firm) will then apply for the REN tag from BOVAEAP.

Once the negotiator has obtained his designated tag and issue number (REN XXXXX), only then can he or she start representing sellers, landlords, buyers and tenants.

Want to know a quick way to check who is which? A REN will have a name tag which is red; a REA will have a name tag that is blue.

• A REN cannot open their own agency, and must at all times, be linked to a registered real estate firm to undertake work within the industry.

• A REA can, of course, open their own firm. They're also allowed to have up to 50 RENs linked to the firm.

2. Rules a Real Estate Agent (REA) and Real Estate Negotiator (REN) must follow

Both agents and negotiator must be registered with the Board of Valuers, Appraisers, Estate Agents & Property Managers (BOVAEA), the industry’s governing board in Malaysia, which is under the purview of the Finance Ministry.

• A Real Estate Agent (REA) is only allowed to represent one party in a transaction, either the buyer or seller. A REA is bound by codes of conduct and strict laws under the Valuers, Appraisers and Estate Agents Act 1981 (Act 242). Any registered REA or firm that commits any wrongdoings will be subjected to BOVAEA’s disciplinary action which includes fines, suspension or deregistration.

• All advertisements in newspapers and property portals posted by a Real Estate Negotiator (REN) must contain the Firm’s E registration number, firm’s telephone number, firm’s name and REN numbers beside his/her mobile number. The public can easily cross-check any REA’s or REN’s identity through the official BOVAEA website.

• Agents and negotiators are prohibited from placing ads on tree trunks and lamp posts. Illegal brokers who put up ads (without REN numbers) and commit any other offence under Section 30(i) of Act 242 is liable upon conviction to a fine not exceeding RM300,000 or imprisonment for a term not exceeding 3 years or both

How to avoid fake real estate negotiators and agents

With all that's said and done, you'd want to make sure you engage the services of a genuine real estate agent or negotiator.

If you meet a REN or REA in person, they're legally obliged to have a name tag on them. As mentioned previously, the tag will be red for REN, blue for REA. This name tag should include all relevant details relating to the accreditation and registration number of the professional.

However, if the REN is terminated or resigns from their profession, they must surrender their REN tag to their firm, who will then pass it on to BOVAEA. This is to avoid unscrupulous behaviour of agents pretending to represent a firm, when they actually no longer do, and potentially conning homebuyers of their money!

When it comes to advertising – all advertisements posted in newspapers, billboards, or property portals must contain the following:

• Estate agent’s e-registration number

• Relevant REN’s name

• Their own registration number

• Contact details

If they don’t have it, they’re probably not legit. If you see a dodgy poster tacked onto the side of a lamp-post, that’s probably not legit either, and it’s actually against the law. Coincidentally, if you spot any signboards you suspect have been put up by illegal brokers, you can report them to BOVAEA. Once that’s done, BOVAEA will look into it for verification before passing it on to the Malaysia Communication and Multimedia Commission (MCMC), who will then suspend and/or ban the contact number on the illegal signboard.

Under the catchy name of clause 30 (1) of Act 242 of the Valuers, Appraisers and Estate Agents Act 1981, anyone caught illegally undertaking the duties of an estate agent can be fined up to RM300,000 and/or be sentenced to up to three years in jail!

Source: https://www.propertyguru.com.my