KUALA LUMPUR (July 13): The Malaysian Institute of Estate Agents (MIEA) estimates that bogus agents have caused registered real estate agents to lose as much as 40% in sales last year, or about RM40 billion of the RM100 billion worth of property transactions that were carried out by ‘real estate agents’ that year.

MIEA immediate past president Siva Shankar said the total value of property transactions done in 2014 were RM162.97 billion — for both the primary and secondary markets — and 60% of that or RM100 billion were carried out by real estate agents.

Of the portion that were carried out by real estate agents, about 30%–40% were estimated to be deals sealed by bogus agents, Siva told reporters here today.

Siva who is also a member of the The Board of Valuers, Appraisers and Estate Agents Malaysia (BOVAEA)’s Estate Agency Practice Committee (EAPC), together with chairman Eric Lim Chin Heng are waging a war against the bogus agents to safeguard the interest of its members, property owners and buyers.

Lim said BOVAEA gets an average of 30–40 complaints a month pertaining to illegal agents, which he believes is just the tip of the ice bergs.

He said the practice of the real estate agents and negotiators is regulated by the Valuers, Appraisers and Estate Agents Act 1981 and anyone who is not a registered agent but poses as one and engages in the selling or leasing of property on behalf of property owners for a fee or commission is breaking the law.

Those found guilty of this could be fined RM300,000, jailed for three years, or both, said Lim.

However, after 34 years of enforcement, no one has been charged under the act, claimed Siva.

Lim said the EAPC is currently working with the police’s commercial crime division to take action against illegal agents.

He highlighted four areas of illegal practices, including cheating, absconding with deposits, profiteering and misrepresentation. These areas would be the focus of EAPC in its latest campaign scheduled to be launched in end-July to raise public awareness.

Last year, BOVAEA launched its Real Estate Negotiator (REN) tag with identification numbers for its members as proof of their identity. There is a Quick Response (QR) code on each tag so customers can scan the code with their smart phones to check the agent’s background.

The customer can also verify the agent’s REN number on BOVAEA’s website or call up the board, Lim said, adding that BOVAEA has certified 16,000 real estate negotiators in the last two years.

To be a registered agent under BOVAEA, one has to study for four years, undergo two years of practical period, and pass an oral test.

“When an earnest deposit is paid to us, we are bound by law to hold the money in trust. If anything goes wrong, or the deal does not go through, we are obliged to return the money. If we don’t, we can lose our licence,” said Siva.

Lim urged the public to engage registered real estate agents to avoid being cheated or getting stuck in a legal entanglement if a deal goes wrong.