Real estate negotiator (REN)
A 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’s Certification Course, 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.
*The Quick Respond (QR) code on the REN and REA ID cards can be verified by a customer using a smartphone or http://search.lppeh.gov.my . It contains all the negotiator’s information including his/her photograph. Alternatively, the customers can call BOVAEAP during office hours at 603-22876666.
Broker (Illegal In Kuching, Sarawak, Malaysia)
This is probably the most familiar name in properties, but in Malaysia is actually Illegal. Any person who acts in contravention of section 22(c) commits an offence under Section 30(i) of the Act and is liable upon conviction to a fine not exceeding RM300,000 or imprisonment for a term not exceeding 3 years or both. Mean without REN is illegal to do any related properties transaction for sale/rent/anything relevanbt in Malaysia. A lot of fraud case has been reports regarding services from illegal broker, so if you deals with broker, BE CAREFUL.
Whether to hire a Real Estate Negotiator, or sell off the property yourself? Here are seven reasons in favour of why you should hire a Real Estate Negotiator.
The proliferation of services that help either the seller or home buyer complete their real estate transactions mean that you’d be spoilt for choice in the selection of a suitable real estate negotiator.
While some may wonder whether it’s fast becoming a bygone practice to hire these services, the process of buying or selling a property is complex, and most people will find it easier to get through with a qualified professional by their side.
Let’s take a look at some of the reasons in favour of negotiators.
It is an ideal situation to have a registered real estate negotiators (REN) to represent the buyer and seller respectively. This would allow for a more fair and transparent process, with both sides’ interests taken care of.
However, it is not uncommon to sometimes only have one REN between two parties. Since all REN are required to be registered with the authorities, they are governed and bound by a code of conduct throughout the entire sales process.
Both buyer and seller will be assured of quality service from their appointed person, with less worries for unscrupulous broker.
For the sellers, their appointed negotiators will have the exact know-how of marketing the particular property aggressive and in all forms of media, especially popular social media platforms such as Facebook/Mudah.my/Website.(www.kuchingpropertyexplorer.com is website of us dedicated to served with add advantage and improved services in Kuching.)
It is also a great way to get the property onto the public’s radar, as they will prepare all the marketing materials (flyers and newspaper advertisements), run the online listings, solicit calls from interested parties, host open houses, and network regularly with other negotiators who may have prospective buyers.
For buyers, their negotiators will have easy access to all the properties that have been listed by other negotiator; they can help to track down properties that meet the list of criteria they’ve been given, and set up all the necessary appointments. Above all, they are skilled at keeping up good relations on both sides.
For the sellers, their appointed negotiators will be able to advise them when it comes to putting the right price tag on the property; the ideal situation is not too high till it becomes a stale listing, and not too low till money is left on the table.
For the buyers, their appointed negotiators will have a wealth of detailed market information such as past transacted prices which will greatly assist the buyer in the search for the dream home in an ideal neighbourhood with the right price. A lot property actually can sell higher with the help of negotiators.
It is of little surprise that the process of buying or selling a property can be a tricky business to handle, especially with all the nitty gritty details such as complaints and counter-offers.
Real estate negotiators are qualified professionals who have been trained to present their respective client’s case in the best light, and are bound to a fiduciary relationship with their respective client’s best interests at heart.
And since they are the middle person, they are also able to remove themselves from the emotional aspect in order to close the deal successfully.
5) Background search
Now here is where the services of professionals will really benefit you! Real estate negotiators are required to perform necessary checks on a variety of important documents, some of which you as a buyer or seller may not be fully aware of.
This process is vital to ensuring that no detail is overlooked which may cause any number of complications after the sale. Some of the documents include caveats as well as the title (ownership, property details, property size, etc).
6) Professional Fees (No hidden Charges/Fraud behind your back)
i. As per the Seventh Schedule (Rule 48), the commission fee is 3% for the sale or purchase of land and buildings.
This figure applies to other services rendered by the firm, such as a joint venture, sale of company and property swap. For chattels including plant and machinery, a fee of 10% on the proceeds is chargeable.
However, these subject to a minimum fee of RM 1,000 per property.
Meanwhile, the fee for the provision of sale and marketing services is to be agreed upon between the estate negotiators and client
ii. For lettings or rental properties, the following maximum amounts are chargeable for tenancies:
Up to 3 years: 1.25 months gross rental>3 years, up to 4 years: 1.5 months gross rental>4 years, up to 5 years & >5 years: 1.75 months gross rental>5 years (with an option of renewal): 1.75 months gross rental plus 0.25 months rental for every additional year
*Subject to a minimum fee of 1-month rental & this scale does not apply to serviced offices or apartments or any other premises of a similar nature. For tenancies less than a year, the fee can be calculated using a pro-rata basis.
7) Smooth process
At the end of it all, they are responsible for facilitating the contracts and escrow to a successful sales close. After the closing though, they will also still be in touch or on standby to assist in case there are any further questions that pop up after the excitement has settled.
The main foundation for the continued career and success of a negotiator in the real estate industry is referrals. As such, they will have strong incentives to make sure that their clients are happy and satisfied so that their business can be expanded through word-of-mouth.
So there you have it, some of the more obvious reasons why it would be in your best interests if you were to hire a real estate negotiator since purchasing a property is likely to be the biggest financial decision of your entire life!
Buying, Selling or Renting Property? TRUST the advise of a Professional! Contact Us Today!
Eric Liew 014 288 5767 or Jess 016 8080 216.