Understanding Real Estate Negotiators (RENs) in Malaysia: 7 Questions Answered
Ever wondered who are real estate agents in Malaysia and what they do? Read on to find the answers.
REAL ESTATE BASICS
KL Lee
10/31/20242 min read
When buying, selling, or renting a property, you will often come across agents who facilitate transactions for a fee.
But do you know that the real estate agency profession in Malaysia is governed by law?
In fact, individuals we often call “agents” are, in fact, real estate negotiators (RENs).
1. RENs vs. REAs: What’s the Difference?
A Real Estate Negotiator (REN) must work under a licensed Real Estate Agency firm.
Only Real Estate Agents (REAs) can own an agency, employing and supervising up to 50 RENs for every REA.
While both REAs and RENs are active in real estate, only REAs have the qualification to start and own a firm.
2. What are the qualifications of Real Estate Negotiators?
They must:
Complete the 2-day Negotiator’s Certification Course (NCC), and pass the NCC Online Assessment.
Possess a minimum academic qualification of SPM (or equivalent).
Show proof of a non-bankruptcy status.
3. How are RENs regulated by Malaysian law?
In Malaysia, real estate professionals, who are registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVEAP), must adhere to strict legal and ethical standards, which include:
Valuers, Appraiser, Estate Agents and Property Managers Act 1981 (Act 242)
Valuers, Appraisers and Estate Agents Rules 1986
Malaysian Estate Agency Standards (MEAS)
Other related laws, including land laws, contract law, and taxation laws.
4. Why must RENs register with BOVAEP?
To ensure professional standards, all RENs must register with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP).
The Board maintains the registry and monitors compliance to the standards, issuing a REN tag with a unique registration number to each REN.
A client may ask the REN to produce their REN tag to confirm authenticity.
5. What are the REN fees for their professional services?
RENs act as a bridge between buyers and sellers, helping each find the right property match.
For their services, a REN's agency receives a fee based on the guidelines set by the Valuers, Appraiser, Estate Agents and Property Managers Act 1981 (Act 242), which include:
Sales: Up to 3% of the sale price (minimum of RM1,000), typically paid by the seller.
Rentals: Fees vary by tenancy duration, with up to 1.5 months’ rental for tenancies up to 3 years (minimum of 1 month).
The fee guidelines ensure transparency and fairness for both clients and agents.
From the fees received, the REN will receive a commission from their real estate agency.
6. Why are RENs always marketing properties?
Marketing forms a substantial part of a REN’s role, requiring them to build relationships and showcase properties to suit their clients' needs.
Whether through online advertising of listings, social media marketing, or in-person viewing, RENs use a variety of tools to reach prospective buyers and sellers.
7. Why Choose a Registered REN?
With professional and legal standards enforced in Malaysia, clients can trust registered RENs to provide quality and reliable services.
Looking for a registered REN?
Are you looking to buy or sell or rent a property?
Are you considering a career in real estate?
Contact us for more information and professional guidance from our registered RENs!