The growing demand for real estate in Malaysia also saw an increase in the number of illegal real estate agents and negotiators.
Not certified with the BOVAEA (Board of Valuers, Appraisers, Estate Agents and Property Managers), these illegal estate agents and negotiators profit by committing various misconduct that jeopardise the image of the real estate industry.
To protect property owners and buyers from these unscrupulous persons, the government established the BOVAEA.
What exactly is BOVAEA and LPPEH?
BOVAEA – also known as the Lembaga Penilai, Pentaksir, Ejen Harta Tanah & Pengurus Harta (LPPEH) – is the body tasked with regulating the Valuers, Appraisers, Estate Agents and Property Managers in Malaysia.
Set up in 1981, BOVAEA comes under the purview of Malaysia’s Ministry of Finance, with its operation governed by the Valuers, Appraisers, Estate Agents and Property Managers Act 1981.
Its functions include the following:
Maintaining the Register of Valuers, Appraisers, Estate Agents, Property Managers, Probationary Valuers and Probationary Estate Agents (PEA) as well as firms of Valuers, Appraisers and Estate Agents.
Approves and rejects applications for registration
Holds disciplinary proceedings
Prescribes scale of fees
Regulates the professional conduct of Valuers, Appraisers, Estate Agents and Property Managers.
The BOVAEA keeps two registers — one for Valuers/Property Managers, while the other is for Real Estate Agents (REA).
What is a Real Estate Agent (REA)?
To be registered as a Real Estate Agent (REA) a person should have passed part 1 and part 2 of the 12 papers, and completed two years of post-practical training with a registered real estate company.
Following that, they'll need to register as a Probationary Estate Agent (PEA), and complete task 1 and 2. The next thing after that would be to pass the Test of Professional Competence (TPC).
After fulfilling all the above requirements, the agent will now be able to register himself with the Board as a Registered Estate Agent (REA).
Upon successful registration, the REA will now be able to operate his/her own real estate firm and provide real estate service in selling, leasing or finding a property for clients.
Another perk of being a registered REA is also that the individual will be able to employ up to 30 Real Estate Negotiators (REN) to help provide real estate services to clients.
What is a Real Estate Negotiator (REN)?
A real estate negotiator is also registered with BOVAEA. However, they’re only allowed to work under registered REAs.
A REN gains their accreditation through attending a two-day course known as the 'Negotiators Certificate'. Because they undergo less studying and less training compared to REAs, they also have to be tied with a registered real estate firm in order to work in the industry.
REN vs REA
The main difference between a REN and REA is that a REA is registered with BOVAEA, while a REN is not, albeit this person is certified to practice.
For a REN to be employed by a real estate firm, s/he must have attended a two-day course on real estate and have been issued with a certificate of attendance for the course.
This certificate will enable the REN to be employed either on a contract of service or a contract of service with a real estate firm.
If the real estate firm chooses to accept the REN’s application, the real estate firm will then need to submit an application to the BOVAEA for a REN tag.
The BOVEA will thereafter issue a tag with a corresponding REN number to the REN.
With this REN tag and the certification, the REN will then be able to represent sellers, buyers, landlords and tenants in the marketing and sale of properties.
How do I apply to be a Real Estate Agent (REA)?
If helping people find their dream home sounds right up your alley, an REA job might be right for you.
We’ve broken down the process of becoming an REA into four key steps. For a more in-depth explanation, read how do I become a property agent in Malaysia?.
Step 1: Examinations
The first part of the written examination includes 6 exams. If you’ve majored in a property-related course or similar degrees, you’re exempted from this.
Step 2: Property Agent Courses
Part 2 of the process calls for you to undergo 6 courses, which will take about 2 years to complete.
Step 3: Experience
To apply to become an REA doesn’t just involve studying. Step 3 is where the work experience comes in.
At this stage, you’re considered a probationary estate agent, and will be required to work for 2 years in the field.
Step 4: Interview
The final step is an oral examination, otherwise known as the Test of Professional Competence. Passing this interview will grant you with your Diploma in Estate Agency and you’re on your way to becoming a registered REA.
How do I check my REA status?
You’ve done all the steps, all you have to do now is wait for BOVAEA to register you so you can finally call yourself an REA!
To check your REA status, you can simply conduct a search at http://search.lppeh.gov.my under “Estate Agent.”
How do I apply to be a Real Estate Negotiator (REN)?
So you want to be a REN, you’ll be glad to hear that the process is a lot more straightforward!
All you have to do is attend a 2-day course known as the Negotiator Certification Course (NCC). See here for the updated 2021 list of recognised NCC providers.
From there, your NCC provider will guide you in submitting the necessary forms to register under BOVAEA so that you can officially be registered as a REN.
How do I check my REN status?
To check your REN status, you can simply conduct a search at http://search.lppeh.gov.my under “Search for Negotiator”.
How do I become a Registered Valuer in Malaysia?
As we mentioned earlier in this article, the BOVAEA keeps two registers — one for Valuers/Property Managers, while the other is for Real Estate Agents (REA).
Property valuers conduct valuations of properties which aims to estimate the market value of the property.
Ultimately, this determines how much the bank will be willing to loan you, since financial institutions usually will only loan you 90% of the valuation amount.
To become a registered valuer in 2021, you will need to have a relevant academic background. Some examples include a Bachelor in Real Estate Management and Bachelor in Quantity Surveying.
After you’ve laid the right academic foundation, you will need to gain 2 years of working experience under a registered valuer and take the Test of Professional Competence for Valuers.
What is it like to take a BOVAEA/ LPPEH exam in 2021?
Whether you’re applying to be a REN, REA or Valuer, don’t fret! Your course provider will be well equipped to guide you in the step-by-step towards getting your accreditation.
With the difficulties that we’re facing in 2021, it’s worth noting that most courses and examinations will be done virtually.
Going to be an agent? Check out these 7 Property Advertising Tips For Property Agents in Malaysia