Types of Real Estate agency appointments presentation

1. Types of Agency Appointments
REAL ESTATE LAW (D08) MALAYSIA
EXCLUSIVE
AGENCY
• Instruction from a Principal to a single Estate Agent to act on his behalf.
• Principals may make introduction but leave the closing of the transaction to the EA
• Principals must pay the appointed EA the agreed fee even if the EA was not effective in the cause of the transaction
SOLE AGENCY
• A single Estate Agency was engaged.
• The principal may close deal by himself and not obliged to pay the EA his agent fee if the EA was not effective in the cause of tranx
• Principal can choose to make a discount in fee on an arrangement made.
SOLE JOINT
AGENCY
• The EA works together with the Principal as a team the the fee is divided on a pre-agreed formula.
• The principle has the flexibility to compensate additional estate agent and at the same time maintain the advantage of having one
EA in control
JOINT AGENCY
• Where more than one Estate Agent is appointed and only the one who closes the deal get paid the agent fee
• The no of E A appointed is limited and each is aware of the appointment of the others
AD HOC BASIS /
OPEN LISTING
• Principal can engage an unlimited number of EA on an ad-hoc basis
• Fees are paid only on successful conclusion of EA trax.

2. Client’s Account –Open, Maintained,
Operation and Consequences
Refer to MAAS, Std 8 & VAAEA Rules 1986 Part Viii Rules 49-61
A client’s account is:
a) Current account open in the name of the registered firm at a bank in while the title contains
the word ‘client’
b) Separate account open in the name of the person designated in writing by the principal
which the registered firm has power of withdrawal on the signature of the sole proprietor,
partner or other authorised person connected with the registered firm.

3. Client’s Account –Open, Maintained,
Operation and Consequences
MAS Scheduled 8
2. A client’s account is necessary and should be opened.
a) As there is a need for the registered firm to be accountable for the
money belonging to client received on behalf which registered
firm is acting as the stakeholder.
b) The purpose of maintaining a client’s account is to ensure that the
monies entrusted to registered real estate agent are:
i) Paid into a separate designated account
ii) Properly recorded in the accounts maintained by the REA
iii) Properly monitored

4. Client’s Account –Open, Maintained,
Operation and Consequences
3. The client account should be maintained and operated as follows:
a) A registered firm that holds money must keep at least one client’s
account.
b) Where the registered firm holds/ received a chq/ banker’s draft/
money order which include client’s money, it shall pay such che/
draft/ money order into the relevant client’s account.
c) All interest accrued in the client’s account is to be accounted to
the client.
d) It is mandatory for a client’s account to be insured with a
professional indemnity insurance.
e) No money other than the monies which the firm is required to
pay into the clients ‘account.
f) No money shall be drawn from the client’s account except;
i) When required to pay to or on behalf of the client

5. Client’s Account –Open, Maintained,
Operation and Consequences
4. Every registered firm shall keep proper books and records to show
its dealing with:
i) All client’s money received, held/ paid by it
ii) Any other money dealt with by it through a client’s account.
iii) A register of all client’s accounts must be maintained
iv) Once in each period of 12 mths, a registered firm shall delivery to
the Boart no later than 6 mths after the end of the accounting
period to which it relates:
v) A certificate as prescribed in 8th Scheduled signed by the
registered agent that during the accounting period covered, it
did/ did not received / hold client’s money and
vi) If it did, an auditor’s report issued by a firm of recognised
professional auditors in the form prescribed in the 8th schedule

6. Consequences of EA Failing to
Maintain a client’s account
1. A Registered Estate Agent shall be held jointly and severely liable
for any contravention of any provision of VAAEA Act 1981.
2. Unless he can prove that he has taken all steps as may be
reasonable to ensure that such contravention shall not be
committed he may declare free of liability for such contravention.

7. Consequences of EA Failing to
Maintain a client’s account
For matter concerning professional misconduct of the EA:
BOARD sends a Notice of Complaint to the EA
May refer to misconduct to:
i) Complaints Investigation Committee (CIC)
ii) CIC investigates
iii) CIC makes report
iv) CIC send report to the Board
v) If Board decides a prima facie case is present, will refer to Disciplinary Board.
vi) EA has to give an intention to appear/ reply to charges within 21 days of receipt of Notive
of Complaint from Board
vii) Disciplanary Board to meet after Registrat appoints time, date, place
viii) EA is entitled to appear before the Board
a) To explain/ rebut withnesses either by writing/ in person otherwise Board can elect to
proceed without any further reference to the EA
b) Board can decide to either dismiss the charges or

8. Consequences of EA Failing to
Maintain a client’s account
For matter concerning professional misconduct of the EA:
Board can make an order to:
i) Cancel EA’s registration by removal of his name from register
ii) Suspend his practice < 3 years
iii) Admonish him and record in Register
iv) Adminish him or impose fine of < 5k / both. With no record in Register
v) Fine 10K and record such fine in Register and that he is suspended from practice until
such fine is paid.

9. Can’t account for monies to client
1. The firm is liable to make good the monies to the client, either
personally/ through an insurer (i.e. professional indemnity
insurance)
2. The REA can within 30 days of being notified of the order may
make an appeal to Appeal Board.