Illegal Real Estate Agents

Illegal brokers made an estimated RM38 billion in property transactions in 2014, eating up almost 40 per cent of the earnings that could have otherwise gone to licensed real estate agents.

The total transacted value of property in 2014 amounted to RM162 billion, RM97 billion of which was transacted by registered real estate agents and illegal brokers. Lately, these unlicensed brokers are marketing their services via social media through web portals, web page applications (apps) and Facebook, often getting away with duping unsuspecting property sellers, buyers, landlords and tenants.

And those who become victims of these bogus agents have no recourse but to lodge police reports. It is believed that for every registered estate agent, there are 20 illegal ones, especially in Sabah and Sarawak. “Illegal brokers are thriving because the public believe they can get better deals from them. “But this is a misconception because firstly, they will undervalue your property as their motivation is to sell.

“Victims will be unable to cover their losses unless they lodge a police report. “On the other hand, if a registered estate agent does this, you can sue for misrepresentation,” said former president of the Malaysian Institute of Estate Agents (MIEA), K. Soma Sundram.

There are 2,400 registered estate agents, 950 real estate firms and 17,500 certified negotiators with tags. Soma Sundram said although there were some certified negotiators who did not adhere to the law, the public could get redress through the Board of Valuers, Appraisers and Estate Agents (BOVAEA). “Firstly, they are protected by the negotiators’ firm. If the negotiator does something wrong, the firm will protect the client by taking action against the negotiator.