Who is a Real Estate Agent / Real Estate Negotiator (REN)?
A real estate agent is an individual licensed by the Board of Valuers, Appraisers Estate Agents (BOVAEA) to manage the process of buying, selling, renting or leasing property. They are also known as Real Estate Negotiators (REN). This license is not permanent. It can be revoked if they do not comply with the laws set during transactions.
To become a registered real estate agent, they must attend courses at the Malaysian Institute of Estate Agents (MIEA) and obtain a recognition certificate upon completion of the course.
Then, they must also register with a real estate agency and obtain an identity card number along with a unique ID number issued by the Board of Valuers, Appraisers Estate Agents Malaysia (BOVAEA).
The difference between REN and illegal brokers is that their activities are monitored by BOVAEA. Any fraudulent activity can be subject to strict action.
In addition, property buyers or sellers can also check the registration status of REN on the BOVAEA website.
Example of a REN identity card:
Job Scope of Real Estate Agent / Real Estate Negotiator (REN)
REN acts as an intermediary between the buyer and the bank as well as the lawyer. For the seller, REN acts as an intermediary between the seller and the lawyer.
REN is responsible for managing matters related to property transactions. They are also responsible for finding the best housing finance for buyers, finding the best lawyers to manage all procedures in the property buying and selling process.
In addition, they will always follow up on the progress with lawyers and banks, and they are also responsible for reminding lawyers and banks to complete all procedures within the stipulated time.
How Much Service Charge is Imposed on Property Owners?
The service charge allowed by the Board of Valuers, Appraisers Estate Agents Malaysia to be imposed on customers is only 3.24% including SST from the property sale value. This service charge is also referred to as earnest deposit and this charge is deducted from the property sale price. It should be noted that this service charge needs to be paid to the real estate agency and not to the REN. The service charge is not fixed and will be returned to the buyer if the buyer’s home financing application at the bank is rejected.
Other Payments Besides Service Charge
Other common payments besides the service charge are legal fees. Usually, the lawyer will issue an invoice directly to the buyer.
