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MALAYSIAN ESTATE AGENCY STANDARDS

THIRD EDITION 2020

BOARD OF VALUERS, APPRAISERS,

ESTATE AGENTS AND PROPERTY MANAGERS

RM20.00
INTRODUCTION

The aim of the Estate Agency Standards is to set the required high standards for the
professional practice of estate agency services in Malaysia. In this connection, the
Standards will aid and elaborate upon the provisions of the Valuers, Appraisers, Estate
Agents and Property Managers Act 1981 (Amended 2017) and Rules in so far as they
deal with the practice of estate agency practice in Malaysia.

Each Standard deals with a specific topic. Each Standard in turn is in three (3) parts,
i.e. the Introduction to the Standard, the Statements of Standard and the Explanations
to the Standard.

The Introduction to the Standard sets out the broad purpose of the Standard and
encapsulates the essence of the Standard.

The Statements of each Standard comprise the main body of the Standard. It contains
the mandatory provisions of the Standard. All Registered Estate Agents and
Negotiators are obliged to follow the provisions contained herein. Inin any disciplinary
actions on any Registered Estate Agent, including on any Probationer, the Board will
apply the relevant Statement of Standards in conjunction with other provisions of the
Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Amended 2017)
and Rules, or on its own.

The non-mandatory Explanations to the Standards serve as elaborations of the

Statements of each Standard.

It is hoped that the Estate Agency Standards will go a long way towards creating and
maintaining a high standard of professional estate agency practice in Malaysia.

The Standards should not be taken to be exhaustive of all conceivable situations that
may arise in practice. Notwithstanding the Standards, all Registered Estate Agents
and Probationers should, at all times, act in a manner consonant with the dignity of
the profession.

The Standards shall come into force on January 2020 and shall apply fo all Registered
Estate Agents, Probationers and Negotiators. The Standards will be subject to periodic
amendments by the Board.

The previous Malaysian Estate Agency Standards dated 2 June 2014 are herewith
repealed and related matters in previous Circulars of the Board are herewith
superseded by these Standards.

The President
Board of Valuers, Appraisers, Estate Agents and Property Managers
2 January 2020
 CONTENTS

Introduction

Contents Page

Definitions

Core Values

Standards — Statement of Standards

Standard 1 The Estate Agency Office

Standard 2 Negotiators

Standard 3 Types of Estate Agency Engagements

Standard 4 Estate Agency Fees

Standard 5 Terms of Engagement

Standard 6 Advertising and Marketing

Standard 7 Co-Agency Practice

Standard 8 Viewing/Inspections

Standard 9 Client's Accounts

Standard 10 Tenancy Administration

6. Forms and Documents

Listing Fact Sheet

The REA's Job Scope and Due Diligence Checklist

Exclusive Authorization to Sell

General Authorization to Sell

Exclusive Authorization to Let

General Authorization to Let

Authorization to Secure a Property for Acquisition

Authorization to Secure a Property for Rent

2
Co-Agency Forms

Property Viewing Acknowledgement

Agreement to Purchase

Agreement to Rent

Viewer's Acknowledgement on Properties Inspected

 MALAYSIAN ESTATE AGENCY STANDARDS

DEFINITIONS

In these standards, unless the context otherwise requires:-

“Act”
Means the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (as
amended)

“Acting for two parties”

Means acting as estate agent for the Vendor (or Landlord/Lessor) and the Purchaser
(or Tenant/Lessee), in the same estate agency transaction and in the same, and/or
related, associated or affiliated, Estate Agency Firm.

“Advertisement”
Means any material product used in the mass media or electronic media and any
published material of any kind whatsoever issued or exhibited by or on the authority
of an Estate Agent, primarily designed to promote the Estate Agent's business and
professional services.

“Appointment/Engagement”
Means the act of appointing /engaging an estate agency firm by a particular Client.

“Associateship or Affiliation”
Means any business arrangement between two or more parties or firms which leads
to the parties or firms having mutual and/or reciprocal interest in their company or
firm.

“Binding Contract”
Means a contract, for the sale and purchase, leasing or letting, of a property that is
legally enforceable.

“Board”
Means the Board established under the Valuers, Appraisers, Estate Agents and
Property Managers Act 1981 (Amended 2017)

“Branch Manager”
Means an estate agent who heads and manages a branch office of a firm on a day
to day basis and who at the same time is not in charge of, or manages, any other
estate agency office or branch of the firm.

“Client”
Means a person who appoints/engages a firm and is responsible for the payment of
the firm's fees in respect of the services rendered by the firm.

“Client's Account”
Means a current or deposit account in the name of the firm at a bank in the title of
which account the word “client” appears, or a separate account opened in the
name of the person designated in writing by a client over which the firm has power of
withdrawal on the signature of the sole-proprietor or any partner or director of the firm,
who is a estate agent, or any other person expressly authorized by the Board.

“Co-Agent”
Means an estate agency firm which introduces a prospective party (Purchaser,
Tenant or Lessee) to the Listing Agent to conclude the transaction and share the fees
in a pre-agreed formula.

“Commission”
Means remuneration or professional fees earned upon effectively bringing about a
certain estate agency transaction to its conclusion and is paid to the Estate Agency
Firm/Negotiator.

“Conditional Agreement”
Means an agreement subject to either a condition precedent or a condition
subsequent.

“Conflict of Interest”
Means a conflict between an estate agent’s obligation to the client and/or to any
other party and his self-interest which may likely affect the estate agent's
independent judgement.

“Contract”
Means a promise, or set of promises, which the law will enforce.

“Contract of Service”
Means an employment of Estate Agents or Negotiators by an estate agency firm on
a full-time basis as provided for in the Employment Act. If any commission is paid, it
shall not exceed the amount as prescribed by the Board.

“Contract for Service”

Means an engagement on a contractual basis of Estate Agents or Negotiators on a
full-time basis where the commission paid shall not exceed the amount as prescribed
by the Board.

“Co-Agency”
Means where the appointed firm which is the Listing Agent enters into an arrangement
with another estate agency firm that has a prospective party to conclude the
transaction and share the fees in a pre-agreed formula.

“Default”
Means the failure of a person to perform a legal obligation or default arising from any
breach of trust, embezzlement, fraud or wrongdoing committed by that person.

“Disclosure”
Means a full declaration made promptly and confirmed in writing at the first available
opportunity and “disclose” shall gave the same meaning.

“Earnest Deposit/Money”
Means an initial payment made by a prospective party to indicate serious interest in
purchasing or renting a property and it may or may not form part of the final agreed
purchase price or rent or security deposit in fhe case of a fenancy and may be
forfeitable depending upon the terms and conditions of the agreement.

“Estate Agency Agreement”

Means any agreement between the client and the firm in respect of a sale, purchase,
letting, leasing, and renting or tenancy administration, of a property listing.

“Estate Agency Practice”

Means acting or holding oneself out to the public or to any individual or firm as ready
to act, for a commission, fee, reward or other consideration, as an agent, (a) in
respect of any sale or other disposal of property; (lb) in respect of any purchase or
other acquisition of property; (c) in respect of any leasing or letting of property: (d)
including making known of the availability of property for such sale or disposal,
purchase or acauisition, or leasing or letting referred ta
to in (a),
(a], (6), (c} as the case may
be; and (e) in respect of any tenancy administration including rental collection,
payment of outgoings, arrangement of minor repairs and handing over and taking
over the possession of a property.

“Estate Agency Transaction”

Means the process of selling, buying, leasing, letting, renting or tenancy
administration, of a property through an estate agent, from the point in time of
granting instructions to the estate agent to the point in time where the sale or
[Link]
purchase. or letting or leasing or renting is concluded.

“Estate Agent”
Means a person whose name has been entered into Part Ill of the Register and to
whom an authority to practice has been issued by the Board under Section 16.

“Fees”
Means fees prescribed under the Seventh Schedule of the Valuers, Appraisers and
Estate Agents Rules 1986.

“Firm”
Means a body corporate, a partnership, a lirnited limited liability partnership, or a sole-
proprietorship, that is registered under the Act.
“Flyer”
Means a handbill, properly done and distributed with the purpose of promoting the
sale or purchase or leasing or letting or renting of a property for which an estate agent
has an instruction to sell or buy or lease or let or rent from a Client.

“Forfeiture”
Means the act of forfeiting any deposit be it earnest or security deposit in the event
of non-completion of an estate agency transaction.

“Forms”
Means a form set out in “Forms” under the Table of Contents of these Standards.
“Government Tax”
Means the tax imposed by the Government for Goods and/or Services.

“Instructions”
Means the terms and conditions of an estate agency appointment or engagement.

“Lead Agency”
Means this is where any of the various types of estate agency appointments, namely:
Exclusive, Sole, Joint or Ad-Hoc Agencies, is engaged by a Developer/Client to market
its projects/properties and the appointed agent has been allowed by the
Developer/Client to lead the marketing while working with other sub-estate agency
firms. The fee arangement for the sub-agents can either be directly from the
Developer/Client or from the Listing Agent.

“Lead Agent”
Means the estate agency firm which has obtained an authority to sell, lease or let
Developer/Client units, from the Developer/Client, under the various types of estate
agency engagements, namely: Exclusive, Sole, Joint or Ad-hoc Agencies, and has
been allowed by the Developer/Client to lead the marketing of the
Developer's/Client’s project/property while working with other sub-estate agency
firms. The fee arrangement for the sub-agents can either be directly from the
Developer/Client or from the Listing Agent.

“Listing”
Means the securing from a Client instructions to sell or buy or lease or let or rent out a
property.

“Listing Agent”
Means an estate agent who has obtained a listing and has been given the rights to
sell or buy or lease or let or rent the property by the Client.

“Marketing”
Means the act of promoting a property or a project so that the public becomes aware
of its availability.

“Misrepresentation”
Includes the positive assertion, in a manner not warranted by the information of the
person making it of that which is not true, though he believes it to be true; Any breach
of a duty which, without intent to deceive, gives an advantage to the person
committing it or anyone claiming under him by misleading another to his prejudice or
to the prejudice of anyone claiming under him; and causing, however innocently, a
party to an agreement to make a mistake as to the substance of the thing, which is
the subject.

“Misleading”
Means making a statement that is false or erroneous in any material in particular
knowing it to be false or intentionally omitting or authorizing the omission or accession
of any matter.
“Multiple Listing”
Means a database of listings held by a group of real estate agency firms which allow
other estate agents to work together on a Co-Agency basis.

“Negotiator”
Means a person who is employed or engaged by an estate agency firm as a
salesperson to assist him/her in the estate agency practice. A Negotiator shall include
Real Estate Negotiators (REN)s and Probationers who shall always be under the
immediate direction and supervision of an estate agent.

“Non-disclosure”
Means the omission, suppression or concealment, of material facts, at the point of
introduction in the estate agency transaction.

“Option”
Means a right given by the grantor, usually the Vendor/Landlord, to the grantee,
usually the
usually the Purchaser/Tenant,
Purchaser/Tenant, to
to purchase/rent
purchase/rent the
the property
property within
within aa stipulated
stipulated time
time
in a prescribed manner.

“Part Payment”
Means a payment, which constitutes a portion of the purchase price or rental.

“Personal Interest”
Means a vested interest in a state of affairs usually with an expectation.

“Premium”
Means any additional consideration paid by the Tenant to the Landlord over and
above the rent reserved.

“Probationer”
Means a Probationary Valuer and/or Probationary Estate Agent under the Act.

“Probationary Estate Agent”

Means a person who is registered under this Act as a Probationary Estate Agent under
$22E of the Act, and whose name has been placed in the Register of Probationers
and is employed or engaged by an estate agent to assist the estate agent in the
estate agency practice. A Negotiator shall include Real Estate Negotiators (RENs) and
Probationers who shall always be under the immediate direction and supervision of
an estate agent.

“Probationary Valuer”
Means a person who is registered under this Act as a Probationary Valuer under $17A
of the Act and whose name has been placed in the Register of Probationers and is
employed or engaged by an estate agent to assist the estate agent in the estate
agency practice. A Negotiator shall include Real Estate Negotiators (RENs) and
Probationers who shall always be under the immediate direction and supervision of
an estate agent.
“Property” or “Properties”
Means any land and buildings, chattels including plant and machinery, joint venture
for property development, sale of company, property swaps, etc. and of any interest
dealt with therein.

“Prospective Party”
Means a third party who is interested to purchase, rent, let or lease a property which
is put into the market by the firm.

“Register”
Register of Valuers, Appraisers, Estate Agents and Property Managers under the Act.

“Register of Probationers”
Register of Probationary Valuers, Probationary Estate Agents and Probationary
Property Managers.

“Registered Person”
Means a person whose name is registered under the Parts I-IV of the Register or under
the Register of Probationers
“Rent”
Means a payment by a Tenant to the Landlord under the terms of a lease or a tenancy
agreement. Such payment may be annually, monthly, weekly or for such period as is
otherwise agreed to.

“Rules”
Means the Valuers, Appraisers and Estate Agents Rules 1986.

“Signboard”
Means a board bearing a sign or notice advertising a property.

“Soliciting”
Means to ask for or invite estate agency instructions.

“Stakeholder”
Means a firm which holds the money that has been deposited by a Purchaser or a
Tenant for the purchase, or rental, of a property and would be released to the Vendor
or Landlord upon completion of all the terms and conditions of the agreement in
which the firm claims no interest.

“Sub-Agent”
A sub-agent is an estate agency firm engaged by, and acting under the control of,
the lead agent which has obtained an authority to sell, let or lease Developer / Client
units and allowed by the Developer / Client to lead the marketing of the Developer's
/ Client's project or properties. The fee arrangement for the sub-agents can either be
paid directly from the Developer/Client or from the Listing/Lead Agent.

“Third Party”
Means any other person who may become linked in some way with a particular estate
agency transaction.
 CORE VALUES

Knowledge of and C liance with the Law

Estate Agents shall abide by, and be fully conversant with, the Valuers,
Appraisers, Estate Agents and Property Managers Act 1981 (Amended 2017}
and Rules 1986, and have a sound knowledge of all relevant laws, statutory
provisions and procedures applicable to real estate and real estate agency
practice and/or its business activities.

Continuous Professional Development Program

Estate Agents shall follow a required program for the continuous systematic
maintenance, improvement and broadening of knowledge and. skills
regarding all laws, proposed legislations, governmental regulations, public
policies, current market conditions and matters affecting the real estate
agency practice in order to execute their professional and technical duties to
their Clients and the public competently.

Conduct of Registered Estate Agents in safeguarding the best interests of their

Clients by acting with Fairness and Integrity
Estate Agents shall exercise reasonable care in adhering to the principles of fair
competition by conducting themselves in an impartial and just manner to all
parties involved in an estate agency transaction so as jo uphold the
professional status and reputation of the profession.

Provision of quality services with Courtesy, Fairness and Integrity

Provision
Estate Agents are duty bound to render quality services to their Clients with
absolute fidelity, and to practice their profession with devotion to the highest
ideals of integrity, honour and courtesy, and also to conduct their business
activities in the spirit of fairness and goodwill to the Public and to his fellow
professionals in the real estate industry.

Transparency and Accuracy of Statements

Estate Agents shall exercise a reasonable duty of care to protect the Public
against error, fraud, misrepresentation, concealment of pertinent facts and
unethical practices in any real estate transaction for which the terms of
engagement have been accepted.

Personal Interests and Relationships to be disclosed

Estate Agents shall disclose any past, present or foreseeable future interests
and/or relationships, either with the Client or the property being transacted,
that could lead to, or be construed as, possible conflicts of interest, when
accepting any terms of engagement for sale, purchase, let, rent or lease.

Acting within the Law

Estate Agents shall, at all times, faithfully observe and perform all their
obligations under the Valuers, Appraisers, Estate Agents and Property
Managers Act 1981 (Amended 2017) and Rules, and other laws of the land,
and comply with every Standard, Directive, Circular, Guideline and decision of
the Board.

10
8. Duties of Real Estate Agent in respect of Real Estate Negotiators (RENs)

Every Estate Agent has a duty to ensure that his/her RENs complies with the
Core Values contained herein in so far as the context herein permits.
 MALAYSIAN ESTATE AGENCY STANDARDS

STANDARD 1

THE ESTATE AGENCY OFFICE

1.1.0 INTRODUCTION

Talal Estate agency practice is a recognized profession and therefore it is

necessary to conduct the operations from a proper office. This is
essential in order to provide a high standard of professional service to
the public and to prevent the practice of estate agency ona temporary
or ad-hoc basis.

1.2.0 STATEMENTS OF THE STANDARDS

121
12.1 Every Firm, including every branch or other office of the Firm approved
by the Board shall operate from a proper office.

122 Any office

Any office or branch office of any Firm must be under the day to day
contro! and management of an Estate Agent unless otherwise allowed
by the Board.

1.2.3 An Estate Agent shall not permit any other person to carry on the duties
and functions of an Estate Agent in his Firm.

1.24 An Estate Agent shall operate an office or a branch only after obtaining
prior written approval from the Board.

1.25
125 The Firm may establish a site sales/leasing office where it markets
properties for a developer/client for a specific period of time as
approved by the Board. The Firm shall not conduct estate agency
transactions other than the marketing of the developer's / client's
properties from the site sales / leasing office.

Where offices or premises are shared by the Firm with another

firm/person not registered as an estate agency Firm, the office or
premises of the Firm concerned shall be partitioned off, with a separate
and distinct entrance from that of the other Firm/person.

1.27
1.2.7 An Estate Agent shall notify and obtain approval from the Board on any
change of address of any office or branch of the Firm at least fourteen
days before such change.

All offices of the Firm shall have proper signages and shall comply with
the following:

[Link] The name and registration number of the Firm shall be

included.

12
 [Link] All signages shall comply with the relevant local authority's
by-laws and the Board's Rules

1.2.9 Every office and branch of the Firm shall display the practising certificate
of the Firm and that of the estate agent managing the office.

1.2.10 Every office and/or the branch of the Firm shall maintain proper records
and proper accounting system relating to the estate agency practice.

1.2.11 Each Firm shall operate and maintain a separate client's account(s)
and have adequate professional indemnity insurance cover.

1.2.12 It is the responsibility of the Firm to ensure that all its employees, and
contractual staff are familiar with the provisions of the Act, Rules,
Standards, Circulars and Guidelines and abide by them at all times.

1.3.0 EXPLANATIONS TO THE STANDARD

1.3.1
1.3.1. A proper office is defined as follows:

1321
1.331 {f must be located in an area that is deemed appropriate
as an office under any Local Government law, by-law,
regulation or guideline.

heel
Lee It must be a business premise or a place that has been
approved for commercial use by the relevant authorities.

Less
123 It must not be a place of residence such as an apartment,
condominium, a temporary place of abode or a house.

[Link] It must not be a temporary site sales office or a property

gallery or a project sales office of a particular project.

13:5
1815 Virtual and serviced offices are not considered as proper
Offices.

43
13
 MALAYSIAN ESTATE AGENCY STANDARDS

STANDARD 2

NEGOTIATORS

2.1.0 INTRODUCTION

2)
2a] Real Estate Negotiators are salespersons who play a vital role in real
estate agency transactions and the manner in which they represent
the estate agency firm, and the profession, is important. As such, the
estate agent shall ensure that his respective Negotiators are
knowledgeable and have the necessary skills, and temperament, to
represent all parties to a transaction, in a professional manner.

nl 2
Dil Negotiators shall include Real Estate Negotiators (RENs) and
Probationers who shall be under the immediate and direct supervision
of their respective Estate Agents.

218
213 The Board requires the Estate Agent to ensure that his Negotiators
conduct the practice of estate agency in full compliance with the
provisions of the Act, the Rules, Standards, Directives, Circulars,
Guidelines and decisions of the Board.

2.1.4
21.4 Any offences or wrong-doings committed by Negotiators shall be
recorded by the Board in the appropriate Record of Complaints for the
Board's, or subsequent hiring estate agency firms’, reference and
evaluation of the seriousness of such offences/wrong-doings for each
respective Negotiator's renewals and/or employment/engagement,
respectively.

21.5 In any disciplinary action(s) against an Estate Agent, a plea in

mitigation, founded on the claim that the estate agent was unaware
of the wrongful actions of his Negotiator(s)
Negotiafor(s) under Estate Agency
Practice, will not be accepted by the Board and neither will it be used
as a defence by the estate agent. Negotiators may be called in to
attend the Complaint Investigation Committee (CIC) inquiries.

The Board reserves the right to cancel, suspend or refuse certification

to any REN, or registration to any registered person(s), based on
grounds of non-compliance to any provisions of the Act, the Rules,
Standards, Directives, Circulars, Guidelines and decisions of the Board.

2.2.0 STATEMENTS OF THE STANDARDS

2:2.) Negotiators are salespersons, employed or engaged, by estate

agency firms, to assist the respective Estate Agent(s), in the conduct of
estate agency practice, to carry oui their Client's instruction({s):-

14
 22:16]
[Link] To list, market and negotiate, the terms and conditions of sale,
purchase, let or lease properties; and/or

221.2 To assist prospective parties to procure, rent or lease

properties; and/or

221.3
22.1.3 In respect of any tenancy administration, including rental
collection, payment of outgoings, arrangement for minor
repairs and handing over and taking over the possession of
any property for which the estate agency firm has been
engaged; and

[Link] To conclude the transaction(s) in a professional manner.

2.2:2 An Estate Agent shall:-

[Link] Maintain a register of his Negotiators including latest details

such as their mobile phone numbers, dates of
employment/engagement by the estate agency firm and
dates of their certification (RENs) / registration (Registered
Persons) by the Board and/or dates of their termination of
services by the estate agency firm; and

[Link] Ensure that the Negotiators and Registered Persons (if any),
employed or engaged under him, must be registered with the
Board via the estate agency firm, whereby the Board shall
issue to the Negofiators
Negotiators their respective REN Tags, or
Registered Persons their respective Authority Cards, which
must be worn by the Negotiators and Registered Persons at
all times during the course of conducting estate agency
practice; and

2223, Ensure, at the point of hiring that:-

2223.1 He does not employ/engage more than the

number of Real Estate Negotiators (RENs)
prescribed by the Board; and

[Link].2 His Negotiators shall be employed or engaged on

a full-time basis and work for only one estate
agency firm, either on an employment
agreement {Contract of Service) or an a
contractual agreement (Contract for Service);
and

22.2:3.3
2223.3 Foreigners, if any, shall have a valid work permit
before they can be employed/engaged by the
estate agency firm

15
 [Link] Ensure that
Ensure that his
his Negotiators
Negotiators work
work only
only under
under his
his direct
direct
supervision; and

[Link] Ensure that the commission payable to his Negotiators shall

not exceed the maximum prescribed by the Board;

[Link] Provide adequate training to his Negotiators to have the

competency and skills to represent the firm professionally in
order to ensure their display of positive characteristics in
dealing with the public; and

2227 Ensure that if he engages any Negotiators who have left their
previous estate agency firm(s), he must apply afresh to the
Board with the prescribed fees using the prescribed form(s);
and

[Link] Ensure that his Negotiators, whose services have been

terminated by their estate agency firm or, who wish to leave
their estate agency firm, shall surrender their REN
Tags/Registered Person's Authority Card to their respective
estate agency firm and the Board shall be notified in writing
of such termination/resignation; and

[Link]
2.2:2.9 Notify the Board of any changes, in his Negotiators’ personal
details including their mobile numbers and/or in the status of
his Negotiators’ employment/engagement, within two (2)
weeks from the date of such occurrence.

2.2.3 An Estate Agent shall ensure that his Negotiators negotiating on behalf
of the estate agency firm:-

[Link] Do not sign any contractually binding documents on behalf

of the estate agency firm including the offer letter,
engagement letter, co-agency letter and flyers; and
engagement

[Link] Shall be adequately acquainted with all material facts of the

property in discussion; and

[Link] Do not place signages on properties that are not listed with
the estate agency firm, or in any undesirable places; and

[Link] Do not misrepresent on the nature of the estate agency firm's

engagement of the properties listed including advertising as
exclusive agent(s) on signages and in other marketing
material; and

[Link] Do not, when offering a property for sale, purchase, let or

lease, quote a listing price different from that agreed upon
with the Client; and

16
 [Link] — Shall furnish to their prospective parties information pertaining
to the property, including the probable length of the
transaction; and

[Link]. Who have any interest, direct or indirect, in any property that
is listed with the estate agency firm must immediately disclose
his interest in the property to the estate agency firm and to
the Client or the Prospect; and

[Link] Shall avoid anything that may tend to mislead a party not
represented by them.

2.2.4. Whilst Negotiators may perform some or all of the necessary

negotiations in an estate agency transaction, an Estate Agent shall
remain responsible to his Clients for carrying out their estate agency
instructions.

2.3.0 EXPLANATIONS TO THE STANDARD

2.3.1 The Standards make it clear that at all times Negotiators shall assist Estate
Agents in estate agency practice and shall be under the direct control
and supervision of Estate Agents.

2.3.2 These amended Standards supersedes the Board's previous Circulars

namely Circular 10/95, Circular 11/96 and Circular 2/98.

2.3.3
2.3.3. Circular 1/2013 —- Mandatory Salary Requirements

a
 MALAYSIAN ESTATE AGENCY STANDARDS

STANDARD 3

TYPES OF ESTATE AGENCY ENGAGEMENTS

3.1.0 INTRODUCTION

3.1.1 Itisimportant for the Client, the Estate Agent and any other related third
party to be aware of the different types of Estate Agency Engagements
under which properties are listed, sold, purchased, let or rented through
estate agents.

3.1.2 It is equally important that the type of Estate Agency Engagement is

agreed between the estate agent and the Client prior to the Estate
Agency Engagement.

STATEMENTS OF THE STANDARDS

3.2.1 Before executing the Letter of Engagement, the Estate Agent shall take
reasonable steps to
fo explain and acquaint the Client with the types of
estate agency engagements and amplify on the differences between
the various types of Estate Agency Engagements including its
implications and repercussions.

3.2.2 Before accepting an engagement as an exclusive or sole agent, the

Estate Agent shall enquire from the Client confirmation as to whether
there is any current exclusive or sole agency engagements executed
with other firms.

3.2.3 An Estate Agent upon becoming aware of an exclusive or sole agency

engagement of another firm shall work on a co-agency basis in respect
of that property with the exclusive or sole agent and not with the client
for the duration of the engagement.

3.2.4 When an engaged firm (Listing Agent) enters into a Co-Agency

arrangement with the Firm that is not engaged (Co-Agent), the
engagement terms of the listing firm (Listing Agent) shall be respected
by the other Firm.

3.2.5 Any listings secured through Co-Agency shall not be passed to another
Firm or its branches or subsidiary without the consent of the listing Firm.

3.2.6 The acceptance of an exclusive or sole agency place upon an Estate

Agent the strongest obligation to render estate agency services to the
expectations of the Client.

18
3.3.0 EXPLANATIONS TO THE STANDARD

3.3.) Estate Agency Engagements are governed by the Principal-Agent

relationship under the Contracts Act 1950 and it is therefore important
for Estate Agents and Negotiators to understand their respective
obligations under the Law of Agency.

3.3.2 For the purposes of 3.2.1 “reasonable steps” means that at a minimum
the firm must explain to the Client the differences between the various
types of agency engagements and its implications.

3.3.3 The various types of Estate Agency Engagements are as follows:

[Link] EXCLUSIVE AGENCY

This refers to the instruction from a Client to a single firm to act

on his behalf. The Client may make introductions and will leave
the closing of the transaction to the firm. The Client must pay
the appointed estate agency firm the agreed fees even if the
firm was not the effective cause of the transaction after having
carried out his due obligations and responsibilities as an Estate
Agent.

[Link] SOLE AGENCY

In a sole agency engagement, a single estate agency firm is

engaged. The Client may, however, wish to reserve the right
to market and conclude the deal himself without the services
of estate agency firm. In this instance, the Client and the
appointed sole agent shall agree on the fee based on a pre-
agreed formula.

[Link] JOINT AGENCY

This is where more than one estate agency firm is engaged and
only the estate agency firm that closes the deal gets paid. The
number of firms appointed is limited and each is aware of the
engagement of the others.

[Link] AD HOC BASIS or commonly referred to as “Open” Listing

The Client may engage an unlimited number of estate agency

firms on an ad hoc basis and fees are paid only to the estate
agency firm which has successfully concluded the estate
agency transaction

19
 MALAYSIAN ESTATE AGENCY STANDARDS

STANDARD 4

ESTATE AGENCY FEES

4.1.0 INTRODUCTION

4.1.1 Estate Agency fees, are based on the Seventh Schedule of the Rules

4.1.2 In addition to the fees, the estate agent is entitled to claim, again in
accordance with the Seventh Schedule of the Rules, disbursement
charges such as the costs of printing, plans, copies of documents,
lithography, travelling, other expenses actually incurred, cost of media
advertisements, signboards, brochures and other promotional
materials.

4.1.3 Estate Agency comes under the Law of Contract and estate agency
fees, plus all disbursements, are generally dependent upon the agency
agreement between the firm and the Client, subject to the Seventh
Schedule. It is thus important for the estate agent to always obtain
written instructions from the client before commencement of the
estate agency assignmeni.

4.2.0 STATEMENTS OF THE STANDARDS

4.2.1 The first rule in so far as estate agency fees, plus all disbursements, are
concerned is that it depends upon the terms and conditions of the
agreement between the firm and the Client.

4.2.2 Where there is no agreement, written or otherwise, between the firm

and the client, then the fees, plus all disbursements, are generally due
upon the creation of a binding contract between the parties to the
estate agency transaction.

4.2.3 If the Sale and Purchase agreement or Tenancy/Lease agreement is

unconditional, the estate agency fees, plus all disbursements, are due
upon the signing of the Sale and Purchase agreement or
Tenancy/Lease agreement.

424
4.24 Where the Sale and Purchase agreement or Tenancy/Lease
agreement is conditional, the estate agency fees (excluding
disbursement) are due when the last of the conditions are met i.e.
when the agreement becomes unconditional.

4.2.5 Notwithstanding 4.2.4, the firm and the Client may agree to vary from
the general rule provided that the Client has given prior written consent
to agree to such specific terms and conditions on when the estate
agency fees, are due. Such an agreement is subject to the firm having

20
 first explained to the Client the legal implication if the condition(s)
precedent is (are) not met and terms of appointment shall be explicitly
and clearly stated that despite the completion of the sale is subjected
to certain condition(s), the estate agency fees are due even without
fulfilment of that stated condition(s) or part thereof:

4.2.6 If the Client to the firm aborts the deal either after the signing of an
unconditional Sale and Purchase Agreement or Tenancy/Lease
agreement or after a conditional agreement becomes unconditional,
then the firm is entitled to the full estate agency fees plus all
disbursements.

4.27 If the other party to the deal aborts, and the Client to the firm forfeits
the deposit, before the signing of the Sale and Purchase Agreement or
the Tenancy/Lease agreement, the firm is entitled to claim 50% of the
full fees, or 50% of the forfeited deposit, whichever is the lower, plus all
disbursements.

428 Where Earnest or rental deposit is paid and accepted by the Client
and subsequently the transaction is aborted by the Client, before the
signing of the Sale and Purchase agreement or the Tenancy/Lease
agreement, where in the lease/letting occupation has not taken
place, the firm is entitled to 50% of its full fees, or 50% of the earnest or
rental deposit, whichever is lower plus all disbursements.

4.2.9 Where a firm has been appointed/engaged and has been given an
Exclusive Agency, the firm is entitled to its fees, plus all disbursements, if
any introduction made during the period of its engagement leads to a
successfully concluded sale or letting after the expiry of the
engagement, provided always it is within a reasonable period of time
and the firm has records of written communication with its client where
the client is aware of the introduction of the prospective party during
the period of engagement.

4.2.10 Where an Exclusive Agency has expired it is necessary for the firm to
obtain a fresh engagement from its Client as the previous engagement
cannot be automatically renewed.

4.2.11 The computation of fees payable, including for Rent Reviews/Renewal,

plus all disbursements, for any transaction shall be as per the Seventh
Schedule of the Rules.

4.2.12 The firm may only deduct its fees, plus all disbursements (subject to
4.2.4), from the earnest deposit or rental deposit from its client's
account after the parties have signed the Sale and Purchase or
Tenancy/Lease agreement provided always that it is an unconditional
agreement and the Client has given prior written consent.

21
 4.2.13 The firm may only deduc? its fees, plus all disbursements (subject to
4.2.4), from the earnest deposit or rental deposit from its client's
account after the parties have signed the Sale and Purchase
Tenancy/Lease agreement provided always that if is an unconditional
agreement and the Client has given prior written consent.

4.3.0 EXPLANATIONS TO THE STANDARD

4.3.1 Statement 4.2.1 would be in line with the common law of agency.

4.3.2 A binding contract is when an unconditional sale and purchase

agreement, or a tenancy/lease agreement, has been signed; or where
the Sale and Purchase agreement, or a Tenancy/Lease agreement is
conditional, when the last of the conditions are met, ie. when the
agreement becomes unconditional.

4.3.3 The term Agreement referred to in item 4.2.3 and inferred to in item 4.2.4
includes a written agreement to enter into a contract.

4.3.4 An example of an unconditional agreement is where no approvals are

required from the State Authorities, State EXCOs, Securities Commission,
shareholders or other relevant authorities or bodies.

4.3.5 Determining Sales Consideration

In determining the fees for any sales which are not explicitly stated the
following shall apply:-

a) The firm shall be entitled to claim for fees based on the total sales
consideration (in cash, company shares or in kind) which shall
include sums paid for all assets and chattels including furniture,
fittings and household appliances.

b) In the case of a property swap, the sales price shall be based on the
agreed consideration or the market value, whichever is higher.

c) Inthe case of a joint venture, share or equity swap, the fees shall be
based on the market value of the property or the joint venture, share
or equity swap consideration, whichever is higher at the date of the
signing of the joint venture.

Determining Rent

a) The term rent refers to the gross rent which is inclusive of:-
i) service / maintenance charges
ii) furniture, fittings and household appliances that are rented
together with the property

b)
6) First year’s rent refers to the first 12 month's rent receivable by the
landlord disregarding any rent-free period

22
 c) Where a premium is payable under the letting or lease, the amount
of the pro-rated premium shall be added to the rent for determining
the fee payable.

43.7
4.3.7 For the purposes of Item 4.2.5, the example of the terms:-

i) “The estate agency fees is due upon signing of the Sale and
Purchase Agreement although the completion of the sale is
subjected to the State Authority's consent on the transfer of
ownership.”

ii)ii) “The estate agency fees is due on fulfilment of Condition 1, 2 &

5 but excluding Condition 3, 4 & 6 of the List of Condition
Precedents. “

23
 MALAYSIAN ESTATE AGENCY STANDARDS

STANDARD 5

TERMS OF ENGAGEMENT

5.1.0 INTRODUCTION

$.1.1
Sal The terms of engagement given by the Client to an estate agency firm
dictate the scope of its authority and it is therefore important that such
terms are precise in language and should never be ambiguous.

eli2
Beli2 Upon receiving the terms of engagement the Firm is obliged to provide
the Client with the required services as stipulated therein. The Firm shall
take all reasonable steps to ensure pertinent facts concerning the
property are well within its knowledge.

5.2.0 STATEMENTS OF STANDARD

5.251 Estate agency engagement can be either verbal or written. However,

the Firms are encouraged to obtain written terms of engagement.

5.2.2
52.2 Terms of engagement can either be in the form of written terms and
conditions from the client or in the form of written confirmation of
agreed terms and conditions by the Firm.

[Link] A “written terms and conditions from the Client” refers to a

formal and signed letter or document from the Client to the
estate agency firm;

[Link] A “written confirmation of agreed terms and conditions by

the Firm” on the other hand refers to a formal letter or
document from the estate agency firm sent to the Client and
confirmed by the Client.

5.2.3 The Estate Agent’s engagement shall clearly state the Firm’s name, a
clear identification of the subject property, the terms and conditions of
the engagement and the intended transaction.

5.2.4 Subsequent to the agreement on the terms and conditions of the

engagement and the intended transaction, should there be any
variations to the said terms and conditions, such variations shall be
agreed upon by the Client.

5.2.5 All estate agency firms are encouraged to use the Board's standard
forms.

5.2.6 In line with Rule 97, and when obtaining the terms of engagement from
the Client, the estate agency firm shall not, where another estate

24
 agency firm has been exclusively engaged or engaged as aa sole
agent, as evidenced by a signboard or any other form of
advertisement in any media referring specifically to the property:-

[Link] Solicit for the same business; or

§:2:6.2 Accept terms of engagement without written confirmation
from the Client that the Client has not engaged any other
estate agency firm on an exclusive or sole agency basis.

5:2.7 All firrms

firms are encouraged to obtain exclusive agency appointments in
writing from the Client whenever possible and to point out clearly to
the Client each party’s rights and responsibilities arising out of the
arrangement.

5.2.8 All agency engagements shall specify the period of validity of the
engagement.

5:29
5.2.9 An estate agent must not directly harass any person in order to gain
instructions and neither shall he/she repeatedly try to gain instructions
in a way likely to cause offence or annoyance to the person.

5.2.10 If the Client withdraws his terms of engagement of the firm, the firm
must advise the Client of any circumstances in which the Client may
have to pay more than one fee and the probability of any continuing
liability on the Client.

52.11 An Estate Agent shall not give an opinion of value of a property in order
to obtain an engagement. An Estate Agent is only allowed to furnish
the selling price based on a competitive market analysis of transacted
values in the area or
[Link]
as evidenced in the JPPH / NAPIC reports.

5.3.0 EXPLANATIONS TO THE STANDARD

5.3.1 Rule 97 reads:-

“A registered estate agent shall not engage in any practice or take
any action inconsistent with the agency of another Estate Agent”

5.3.2 Written terms of engagement can either be in the form of “a written

terms of engagement from the Client” or “written confirmation of the
terms of
terms of engagement
engagement by
by the
the Estate
Estate Agent”.
Agent”.

[Link] “A written terms of engagement from the Client” refers to a

formal and signed letter or document of engagement from
the Client that is addressed and communicated to the Estate
Agent, and

[Link] “A written confirmation of the terms of engagement by the

Estate Agent” on the other hand refers to a formal and signed
letter or document that is prepared by the estate agent and

25
 sent to the Client and confirmed by the Client as to the
agreed terms and conditions.

5.3.3 Terms and conditions of engagement refers to the agreed terms and
conditions appointing the Estate Agent whilst terms and conditions of
the transaction refers to the agreed terms and conditions upon which
the property will be purchased, sold, secured for rent or lease or let.

5.3.4 For the purposes of item 5.2.9, the term “harass” means acting in a
threatening or oppressive manner likely to cause alarm, annoyance
and/or distress.

26
 MALAYSIAN ESTATE AGENCY STANDARDS

STANDARD 6

ADVERTISING AND MARKETING

6.1.0 INTRODUCTION

6.1.1 Advertising the property for sale, purchase, letting or renting is an

important aspect of the work of an estate agency firm and this aspect
of the work requires essentially that the advertising is done tastefully,
professionally, with no misrepresentation and must not mislead the
public as to the facts of the property.

6.1.2 Estate Agents should recognize that the profession needs to maintain its
goodwill with the public and it is imperative not to do harm to the
profession by advertising in an unbecoming manner or without good
taste.

6.2.0 STATEMENTS OF THE STANDARDS

6.2.1 An Estate Agent must ensure that advertisements and public statements
shall not bring. the profession into disrepute and that they are
responsible, accurate and not sensational in content.

6.2.2 Any form of advertisement in any media, whether in the mass media,
electronic, digital or mobile media, shall comply with the following
conditions:-

[Link] The advertisement shall contain:-

622711 The name, registration number and office

telephone number of the estate agency
firm;

6221.2 The name, mobile number and

certification/registration number of the
REN/registered person, respectively; all of
which shall be prominently displayed; and

[Link].3 No comparative or superlative description of

the estate agency practice;

[Link].4 No claims by the advertiser to be an expert

in any specialized field; and

622.1.5 Publish information which is factual.

27
6.2.3 All forms of advertisements, announcements or felicitations in any media
shall comply with the conditions as stated in 6.2.2 above, with the
exception of newspaper advertisements which shall contain at a
minimum the registration and office telephone number of the estate
agency firm; and the certification/registration number of the
REN/registered person; all of which shall be prominently displayed.

6.2.4 The Estate Agent shall take all reasonable steps to ensure that
advertisements placed by him to promote the sale, purchase, letting,
leasing, renting and/or tenancy administration of a property are:-

[Link] Accurate and factual;

[Link] Tasteful;
[Link] Not written in glowing terms which overstate the virtues of
the property; and
[Link] Not misleading.

6.2.5 Advertisements should be placed in proper places and as allowed by

the relevant authorities.

6.2.6 The Estate Agent shall only replace, or remove, another estate agency
firm's signboard from any property provided always he has the written
consent of the Client and has duly communicated this information to
the other estate agency firm via a letter.

6:27
6.2.7 Flyers are permitted under the following conditions:-

627)
6271 The contents in any flyer shall specify the type of property
for sale / rental / lease or wanted; and

[Link]
627.2 The flyers shall contain:

6272.1
62.7251 The name, address, registration number and
office telephone number(s) of the estate
agency firm;

6272.2
O27.2.2 The name, mobile number(s) and
certification/registration number of the
REN/registered person, respectively;

6.2.8 Any estate agency firm teaming up with foreign developers, estate
agents or owners to sell foreign properties must ensure that they comply
with the following conditions whereby the local estate agency firm
must:-

[Link] Have adequate knowledge of the property and the

foreign country’s framework of real estate law and
practice before it accepts the assignment;

[Link] Obtain written permission from the Board before the sale
or marketing of the foreign property, whereby each such

28
 permit to sell foreign properties shall be valid for a
minimum period of six (6) months for any location(s) in
Malaysia;

[Link] Prominenily display the approval number given by the

Board in all advertisements;

[Link] Be accorded due prominence in all advertisements;

[Link]
[Link] Play gag mojor role by actively participating in the
transaction and ensure that its local sales assistants shall
be present at any of the specified locations in Malaysia
during the promotional period of the foreign properties;

[Link] The minimum fee chargeable is 2% of the sale price.

6.3.0 EXPLANATIONS TO THE STANDARD

6.3.1 Factual advertisements can have modern marketing aspects.

6.3.2 Should not overstate/oversell the property means basically that the firm
should, with the use of as few words as possible paint a word picture of
the advantages to be gained by owning a particular property.

6.3.3 Immediately means as soon as it is reasonably practical in the

circumstances.

6.3.4 A cardinal principle is the need for care and accuracy on the firm's part,
in what it says and what it writes, not only to be true but not to be
misleading by being incomplete or biased on the particular subject and
if it is in doubt to leave it out.

6.3.5 The firm should consider it worthwhile, as a precaution, sending draft

particulars to the clients and asking them to advise them urgently if they
have reason to believe that any statement is inaccurate or misleading.

29
 MALAYSIAN ESTATE AGENCY STANDARDS

STANDARD 7

CO-AGENCY PRACTICE

7.1.0 INTRODUCTION

FAA
Fala Co-Agency is a co-operating agreement between a Listing Agency Firm
(or Listing Agent) and a Co-Agency Firm (or Co-Agent) which introduces
a prospective party in the sale / rental or leasing of a property.

FA.22
FA The terms and conditions of the working relationship between both
parties are to be specified clearly. Similarly the fees chargeable by
each party are also pre-agreed upon.

7.2.0 STATEMENTS OF THE STANDARDS

7.231
7.2) Both the co-operating Firms have to agree in writing on the terms of the
co-agency arrangement before the commencement of any work.

D2
E22 All Co-Agency agreements shall have an expiry date decided by the
Listing Agent. The co-agency agreement will terminate at the expiry of
the Co-Agency period or on the expiry of the listing or on mutual
agreement between the co-operating Firms.

23
7.2.3 The Co-Agency firm is not permitted to solicit for the same agency
appointment that is the subject of the co-agency agreement during the
period of the co-agency agreement.

7.2.4
7.24 In a co-agency arrangement, the earnest deposit paid by the
prospective party may be collected by either the Listing Agent or the
Co-Agent. However, only the party authorized by the Client to be the
rightful appointed Stakeholder shall HOLD the Earnest Deposit; unless
otherwise agreed in writing by the Client. The rights of the Listing Agent
shall be respected.

7.2.5 The standard fee shared between the Listing Agent and the Co-Agent
shall be in the ratio of 50:50 percent unless otherwise agreed in writing
between both the co-operating firms.

7.2.6 Any variations from the 50:50 percent standard fee sharing aggregate
shall be agreed upon in writing between the Listing Agent and the Co-
Agent. Similarly, where a transaction is aborted, a 50:50 percent (%) split
of the abortive fee or forfeited amount applies i.e. 50% to the Client, 25%
to the Listing Agent and 25% to the Co-Agent.

7.2.7 Co-Agency agreements can be initiated by either party and shall be

signed by the respective estate agency firm's Estate Agents.

30
 7.2.8 All details pertaining to the property, the Earnest Deposit, the fee,
inclusive of when the Listing Agent gets paid, and the mode of payment
by the Client, shall be disclosed by the Listing Agent to the Co-Agent
upon entering into a Co-Agency arrangement.

7.3.0 EXPLANATIONS TO THE STANDARD

Toul
Zaul The listing firm shall:-

[Link] Ensure that any viewings, correspondences or dealings

with the property has to be through the listing firm;

73A2
T3N2 Ensure that the Co-Agency firm is paid the agreed fees
promptly when due;

73:13)
73:13 Not to contact the Co-Agent's prospects without the Co-
Agent's consent and knowledge:

[Link] Keep the Co-Agency firm informed of the progress of the

negotiation / transaction; and

7.3.15
7.3.18 Endeavour to take all necessary steps to collect
outstanding fees as soon as possible.

7.3.2 The Co-Agency firm shall:-

shall:

7324)
7323 Ensure that any viewings, correspondences or dealings on
the property shall go through the Listing Agent;

7322
73.22 Keep the listing firm informed on the progress of the
transaction;

7.3.23 Not advertise or promote the property under the co-

agency agreement unless otherwise agreed upon by the
listing firm;

[Link]
7.3.24 Not contact the Listing Agent's Client directly whilst the co-
agency arrangement is still in force;

[Link] Not put up its own signboard on the property which is

under the co-agency arrangement unless otherwise
agreed upon by the listing firm; and

[Link] If the listing firm has already shown the property to the
spouse, employee, proxy, nominee or any representative
of the prospective buyer/tenant, procured by the Co-
Agent, then the Co-Agent shall not be entitled to the
agreed fee, unless the identity of name of the spouse,
employee, proxy, nominee or any representative of the

31
ai
 prospect has been disclosed to the Listing Agent in the first
instance.

7.3.3 For the purposes of the treatment of the earnest deposit under clause
7.2.4 the following shall apply:-

[Link] The earnest deposit shall be transmitted or remitted to the

Listing Agent's Client, or to the Client's authorized
Stakeholder, and/or with the authorization of the Client be
treated as part of the professional fee payable to the
Listing Agent upon the successful conclusion of the co-
agency transaction; the fees of which shall then be shared
with the Co-Agent in the
fhe amounts, and manner, as stated
in 7.2.5 or in 7.2.6.

32
Rs
 MALAYSIAN ESTATE AGENCY STANDARDS

STANDARD 8

VIEWINGS /INSPECTIONS

8.1.0 INTRODUCTION

8.1.1 Viewing refers to the inspections of the property by the prospective

parties before buying or renting a property.

8.1.2 Under the Law of Agency the agent must promote the interest of the
Client. The Board additionally requires that this promotion of the client's
interest is to be applied in fairness to all parties.

8.2.0 STATEMENTS OF THE STANDARDS

8.2.1 The Estate Agent shall not, without first obtaining the approval of the
Client, place any form of advertisement of, or advertise the property
“For Sale”, “To Let” or “To Lease”.

8.2.2 Upon commencing an instruction the firm should entertain queries

regarding the property from any prospective party.

8.2.3 An Estate Agent shall not make any factually unsupportable statement
of the property listed for sale, purchase, letting or renting.

8.2.4 The Estate Agent is encouraged to:

(a) Use a Listing Fact Sheet, or an equivalent document, to record the

details of each listing including the terms and conditions of
sale/letting/lease and/or the inventory list if applicable, and to
update it accordingly as and when required; and

(b) Use a Property Inspection and Disclosure Form, or equivalent

document, to record and disclose the pertinent facts of the property
to the prospect(s} and to obtain the acknowledgement of the
prospect(s) having been made known of the pertinent facts; and

(c) Document every viewing engagement by using a Viewing Form,

preferably the Board's Standard Viewing Form, and have it signed
by the prospect(s).

8.25 The Listing Agent is encouraged to be present during alll

viewings/inspections, including in cases of co-agency.

8.2.6 In cases of Co-Agency, the viewings and due documentation of the

property must at all times be with the knowledge and under the overall
supervision of the Listing Agent.

33
 8.2.7 The Estate Agent shall be fair, and just, to all parties in negotiations and
in drafting or assisting in drafting of all letters, forms and agreements.

8.2.8 An Estate Agent, unless he is a registered valuer, shall not communicate

in writing or verbally to any person, an opinion on the value of a
property, as it may be construed as a formal valuation within the
meaning of the provisions of the Act and the Rules.

8.3.0 EXPLANATIONS TO THE STANDARD

8.3.1 Standard 8.2.1 should rid of the profession of “poster wars” that is the
bane of the profession at present.

8.3.2 Standard 8.2.4(c) encourages that in every property inspection, a

record of the details of viewing by prospective parties is available.

8.3.3 An example of a factually unsupportable statement in Standard 8.2.3

would be where the Estate Agent represents that the adjacent land is
for open space whereas this statement was made without adequate
knowledge or without checking with the relevant authorities.

34
 MALAYSIAN ESTATE AGENCY STANDARDS

STANDARD 9

CLIENT'S ACCOUNTS

9.1.0 INTRODUCTION

9.161
91a All Estate Agents by the very nature of their practice hold money
belonging to other people. It is therefore mandatory that there should
be Standards dealing with the estate agents’ accounts and the
handling of Client's money. The purpose of maintaining a Client's
Account is to ensure that monies entrusted to registered persons are
properly recorded in the accounts maintained and monitored by the
Firm.

P12 The fiduciary duties of the Estate Agent are matters the Board views very
seriously. Accordingly, breach of the Act, Rules and Standards in respect
of fiduciary obligations will be dealt with severely by the Board.

9.2.0 STATEMENTS OF THE STANDARDS

O21
P24 The Estate Agent shall keep at least one Client's Account.

9.2.2
9.22 Every Estate Agent who receives client’s money shall without delay pay
such money into the Client's Account upon the Client's acceptance of
the other party's offer to sell/purchase/let or lease, unless otherwise
agreed with the Client.

9.2.3 The Estate Agent shall not be obliged to pay into a Client's Account
monies held or received by them:-

923.1 in the form of cash and which is without delay paidin

paid in cash,
in the ordinary course of business, to the Client or a third
party authorized by the Client; or

9.23.2 in the form of a cheque or draft, which in the ordinary

course of business, is payable to the Client or a third party
authorized by the Client.

9.24 The Estate Agent shall only withdraw monies from the Client's Account
in the circumstances as laid down in Rule 53.

92:5,
9:2'5, Every Estate Agent who maintains an interest bearing Client's Account,
shall account to such Client for the interest earned by such an account.

9.2.6 Every Estate Agent shall have an insurance cover for the Client’s
Client's money.

35
927 The Estate Agent shall once in each period of 12 months deliver to the
Board an auditor's report issued by a firm of registered professional
auditors.

9.28 The Estate Agent must be able to account for all monies held on behalf
of a Client.

929
229 The Estate Agent shall not deduct any estate agency fees, cost or
charges from any Client’s
Client's money unless the Client has given written
consent to do so.

9.2.10 No monies shall be drawn from a Client's Account except by a cheque

drawn in favour of the vendor, purchaser, landlord or tenant or any
other party as duly authorized by the Client.

9.2.1 A firm having two or more places of business (i.e. branches or subsidiary
companies) shall produce:-

PQA Separate certificates for separate accounting periods

and fhe auditor’s report may be adopted in respect of
each place of business; and

9211.2
92112 The auditor's report(s) for each year shall cover all Client’s
money held or received by the estate agency firms.

9.2A2 No sum shall be transferred from the account of a Client to that of

9.212
another except in circumstances in which it would have been
permissible under the Rules to have withdrawn from a Client's account
the sum transferred from the first Client and to have paid into a Client's
accounts the sum transferred to the second Client.

9.2.13 Every signatory to a Client's account must be one or more of the

following:

9:2.13.1
[Link] An Estate Agent in the case of a sole proprietorship; or

9213.2
[Link] A partner in a case of the partnership who is a registered
person; or

[Link] A director in the case of a body corporate who is a

registered person; or

92134 In exceptional circumstances, a person not falling within

[Link] - [Link], who is expressly authorized by the
Board.

9.214 The Board may appoint any registered estate agent to operate the
Client's Account of a deceased Estate Agent who had operated as a
sole proprietor.

36
9.3.0 EXPLANATIONS TO THE STANDARD

9.3.1 Client's money and the operating account of the agency firm shall be
kept separate.

9.3.2 Without delay means within a short a period as is reasonably practicable

in the circumstances from the moment from what is to be done can
reasonably be done.

9.3.3 A register of all Client's Accounts must be maintained. These accounts

and records must be such as to show in any particular case:-

[Link] The amount received;

[Link] The name and address of the payer:

[Link] Whether the sum received is a contract or pre-contract

deposit and in any case, whether it includes any sum in
respect of a connected contract;

[Link] The capacity in which the sum is received;

[Link] Where different from [Link] above, the identity of the

person for whom the sum is being received;

[Link] Date of receipt.

9.3.4 Adequacy of cover means if a claim is made against the firm the
insurance must be sufficient to meet the said claim.

37.
37
 ESTATE AGENCY STANDARDS

STANDARD 10

TENANCY ADMINISTRATION

10.1.0 INTRODUCTION

10.1.1 The role of the Estate Agent may include tenancy administration which
involves the effective management of landlord tenant relationship and
the associated management functions to ensure that a property is able
to provide tenants with a level of customer orientated services and
satisfaction enabling landlords to attract and retain tenants.

10.1.2 The estate agent's role in tenancy administration may involve aspects
of fenant liaison, handing and taking over of premises, billings, collection
and disbursement of rents, coordination between contractors
undertaking works in the premises, payment of utilities, property taxes
and services charges, and monitoring reinstatement of premises upon
termination or expiry of the tenancy or lease.

10.1.3 This landlord tenant relationship management role is not for entire
developments, complexes
developments, complexes or
or buildings
buildings with
with multiple
multiple tenants
tenants or
or common
common
area management.

10.2.0 STATEMENTS OF STANDARD

10.2.1 The Estate Agent shall sign and date the written details of the terms of
engagement and business arrangement including procedure and
responsibility for specific tasks.

10.2.2 Depending on the scope of work, the Estate Agent shall implement
relevant processes for the collection of rents, service charges or any
other charges, car park charges and/or other relevant charges and
shall keep proper accounts of all monies collected.

10.2.3 Standard 9 of this Malaysian Estate Agency Standards shall apply to the
administration of monies on behalf of the Client.

10.2.4 The Estate Agent shall ensure proper documentation and records are
kept on the client's property and inventories. He must ensure that these
items are kept in good condition, with the exception of fair wear and
tear.

10.2.5 The Estate Agent shall have a good understanding of the covenants
that are entered into between the landlord/lessor and tenant/lessee in
the tenancy/lease agreement, and be well versed with legal provisions
relating to landlord and tenant tenancy/lease matters as well as those
under the Contracts Act 1950 [Act 136] and any other relevant laws.

38
 10.2.6 The Estate Agent shall ensure that the covenants expressed or implied,
are observed by the tenant or the lessee, under the tenancy/lease
agreement throughout the duration of the tenancy/lease. He shall
diligently monitor and enforce the covenants without fear or favour at
all times.

10.2.7 When the

When the Estate Agent scope include the delivery of vacant possession
and handing/taking over of premises, the Estate Agent shall ensure and
properly coordinate the same in accordance to the agreed tenancy
terms which may include full reinstatement of the property to its
original condition.

10.2.8 The Estate Agent shall ensure that all dealings and transactions are
ethical and transparent with his client's best interests protected at all
times.

10.2.9 The Estate Agent should ensure that a service level agreement is made
and shall incorporate the following fiduciary obligations to the client
without any modification to the wording below:

a.
oF In the discharge of Estate Agent's fiduciary duties and obligations
to the client, the Estate Agent shall not receive money or
commission or gift or donation for the estate agent’s own
personal benefit from any vendor, supplier, contractor or
service provider in order to ensure that the Client's interest is not
compromised by the estate agent's own personal interest.

b. In the discharge of the estate agent's fiduciary duties and

obligations to the Client, the estate agent shall be prohibited
from receiving any form of commission or money or kickback
directly or indirectly from the contracts with or without the
awareness of his client in order to protect the client's interest and
the integrity and professionalism of the estate agent.

10.2.10 The Estate Agent shall furnish a monthly statement listing the expenses
and collection in relation to the property to the Client.

10.3.0 EXPLANATIONS

10.3.1 The Estate Agent plays an important role as the link between the
landlord/lessor and the tenant/lessee. Whilst ensuring that the
tenant/lessee has quiet enjoyment of the premises, the Estate Agent
must also ensure that the tenant/lessees briefed clearly on by-laws and
house rules and his obligations under the tenancy/lease agreement.

10.3.2 The Estate Agent may be required to collect rents in addition to service
charges or other charges. He must ensure that all monies are properly
collected and accounted for in the appropriate account.

39
 LISTING FORM

OWNER’S NAME: TEL;

PROPERTY ADDRESS:

OFFER TYPE - FOR SALE - Selling Price : RM. Price psf: RM

ROI: % TOLET
TOLET = Rental Price : RM Price psf: RM.

PROPERTY TYPE -
RESIDENTIAL - Apartment / Serviced Residence / Condominium / Flat / Penthouse
- Bungalow / Semi-detached / Terrace Link / Townhouse storey
COMMERCIAL - Office / Shop / Shop-Office / Retail Space / Retail Office
INDUSTRIAL - Factory / Warehouse
LAND - Agriculture / Residential / Commercial / Industrial

TITLE - Individual / Strata (Issued? Yes / No)

TENURE - Freehold / Leasehold - Unexpired
UnexpiredLease:____
Lease:____ years / Malay Reserve Land
LAND AREA - BUILT-UP AREA -
LAYOUT - Corner / Intermediate / Endlot FACING DIRECTION -
FURNISHING - Fully furnished /Partially furnished / Unfurnished
RENOVATION: RM Approved/Not Approved

Floors [Ground | 1% Qnd

ROOMS Autogate
BATHS Water-heater
AIR CONDS: Alarm System
FANS
LIGHTS
CABINETS
W/MACHINE
FRIDGE

l|
OCCUPANCY - Owner Occupied / Vacant /Tenanted 0O ilable from,
MAINTENANCE FEE: RM POWER SUPPLY - Single Phase / Three Phase
FLOOR LOADING: CEILING HEIGHT:

FACILITIES - Business Centre / Barbeque Area / Cafeteria / Club House / Gym / Jacuzzi
Covered Parking / Jogging Track / Mini market
/ Nursery / Playground/
Salon / Sauna / Squash Court / Tennis Court / Swimming Pool/ Wading Pool/ 24hr Security

LATEST TRANSACTIONS DETAILS -

OTHER REMARKS - (Age, developer, why selling, viewing time, renovation etc)
ACTIVITY LOG
o Banner alnternet cNewspapers oFlyers clnternal Network oCo-Agency
a Open House oRegistered buyer oProspecting
Prospecting oViewing oFollow up

Date Activity / Remark Contact

Details
Obtain listing
 THE REA’S JOB SCOPE & DUE DILIGENCE CHECKLIST
(Guidance Nofe)

SECURING A PROPERTY FOR SALE/TO LET Via your Sphere of Influece — LISTING
PROCESS
Conduct Comparative MARKET AND COMPETITOR ANALYSIS — Research
Conduct JOINT PROPERTY INSPECTION WITH CLIENT — Verify property, title and
ownership details, owners type of title, consents, defect liability, planning permissions
for renovations done, inventory list, amenities, facilities, accessibilities, condition of
property, planning permissions for renovation done encumbrances — FACT FINDING

Al
relevant properties.
Agree on LISTING PRICE & the Terms and Conditions of Sale/Let/Lease/Acquisition
nthe AGENCY TYPE (4 types) Agree on the Terms & Conditions of APPOINTMENT

Execute THE APPOINTMENT LETTER

ith Client the Target Group, Marketing Plan & Strategies. Prepare Marketing

Handle ENQUIRIES & Qualify the Prospective Party/CO-AGENCY/Set up Viewing

Appointments

es and Rental Presentations to Prospects. Handle Objections. NEGOTIATIONS. Close

EXECUTE THE OFFER LETTER- AGREEMENT TO PURCHASE/RENT/LEASE/ACQUISITION and

COLLECT EARNEST MONEY (ED). Deposit (transmit or remit) ED into the LISTING Agent's
Client's Account
EXECUTION OF SPA (CONDITIONAL/UNCONDITIONAL) OR TENANCY AGREMENT within

INVOICE THE CLIENT ON THE REA FIRM’S PROFESSIONAL FEES (When do we get paid?)
TRANSITION PERIOD (iF
(IF ANY) TILL HANDOVER OF KEYS
 Letterhead

EXCLUSIVE AUTHORIZATION TO SELL No.

IWe (NRIC No
) the registered/beneficial owner(s) (“the Vendor”)
for the property held under title bearing the postal
address,
(‘said Property”)
hereby appoint you XYZ Realty to be mylour
my/our EXCLUSIVE AGENT for a period of (__) calendar months commencing from the __ _
dayof_____ 20___ and expiring on the__ day of 20___ ("Exclusive Period’) to sell the said Property to any Purchaser(s) at the
selling price of RM (Ringgit Malaysia
Only) or the nearest offer to be agreed by the Vendor (“Purchase Price”)
subject to the following terms and conditions:-

4. in consideration of XYZ Realty providing the service for the sale of the said Property, the Vendor hereby agrees to pay XYZ Realty a
professional fee equivalent to 3.00% / % of the Sale Price of the said Property OR a professional fee equivalent to RM
, plus ____% Sales and Services Tax (SST) on the professional fees -:
a. Upon the sale of the said Property to any Purchaser(s) procured by XYZ Realty during the Exclusive Period on the terms specified
herein and upon the execution of the formal Sale & Purchase Agreement (“SPA”); OR
b. Even if the said Property is sold, or contracted to be sold, by the Vendor personally, or through any other pee or agent other than
through XYZ Realty, during the Exclusive Period or early i ion of this Exclusive tii any; OR
O
c. Even if after the expiry of the Exclusive Period, the Vendor enters into a formal SPA with a Purchaser(s) be
Me was introduced or
procured by XYZ Realty prior to the expiry of the Exclusive Period.
2. This exclusive authorization to sell the said Property shall remain valid during the said Exclusive Period. The said Exclusive Agency shall
expire at the end of the term unless it is renewed by the Vendor and XYZ Realty by mutual consent.
3. XYZ Realty is hereby authorized to collect and accept from the Purchaser(s) on behalf of the Vendor a sum equivalent to 3.50% of the
Purchase Price (‘Earnest Deposit’) as Stakeholder, and XYZ Realty is authorized to deduct the said agreed professional fee and SST due
from the Eamest Deposit upon execution of the SPA before releasing the balance (if any) to the Vendor. In the event the said Earnest
Deposit is insufficient to pay XYZ Realty’s full professional fees and SST, the Vendor hereby undertakes and agrees to make good the
shortfall immediately.
4. In the event Eamest Deposit has been paid and the sale transaction is aborted by the Vendor or by the Purchaser(s) before the execution
Inthe
of the SPA, the Vendor agrees to pay XYZ Realty a professional fee equivalent to 50% of the Earnest Deposit or forfeitable deposit or 50%
of the agreed full fees, whichever is lesser, plus the relevant applicable SST.
5. The Vendor agrees to fully indemnify XYZ Realty against all ims by the F if the Vendor for any reason
whatsoever fails to execute, or does not proceed with the execution of the SPA after the Earnest Deposit has been paid or collected.
6. The Vendor hereby authorizes XYZ Realty to utilize any form of advertisement to promote the sale of the said Property, including but not
limited to putting up a “For Sale” signboard at the said Property or to advertise the said Property through any form of media.
. This instruction contained herein is given to XYZ Realty in the Vendor's capacity as: (DELETE whichever not applicable)
~

a) The registered proprietor / absolute beneficial owner of the said Property; or

b) Trustee for the legal owner(s) of the said Property / Personal five (Executoror Admini ) of the owner(s) or
c) Attorney of the registered proprietor / duly authorized representative of the Owner(s) pursuantto a Power of Attorney dated
8. Terms and Conditions of Sale:
a) 10% of the Purchase Price of the Property (inclusive of Earnest Deposit} to be paid by the Purchaser(s) upon execution of the SPA.
b) The balance 90% of the Purchase Price to be paid within three (3) months from the date of execution of the SPA OR date of receipt by
the Purchaser's Solicitors of the Developer's Confirmation / Developer's Consent / State Authority Consent/ Statutory Body Consent
and/or the issuance of the Certificate of Completion and Compliance / Certificate of Fitness, whichever is later and whichever is
applicable. An extension of a further (___) months may be granted to the Purchaser(s) to enable him to settle in full whatever
is the outstanding balance, provided interest is chargeable on the unpaid balance at % ( percent) per annum
calculated on a day to day basis.
c) The said Property is sold on an “As Is Where Is” basis with vacant possession / non-vacant possession* subject to an existing tenancy
and subject to the inventory list as per attached (if any). “Delete whichever not applicable.
9. We hereby declare that I/We have not appointed any other estate agency as of this date of appointment.

Signed by the registered proprietor/ Witnessed by:

beneficial owner of the said Property

Name & NRIC: Name & NRIC:

Contact No.: Contact No.
Address: Address:
DATE: DATE:
 Letterhead

GENERAL AUTHORIZATION TO SELL No.

We.
(NRIC No ) the registered/beneficial owner(s)
(‘the Vendor’) for the property held under title bearing
the postal address
(‘said Property”)
hereby appoint you XYZ Realty as my/our AGENT to sell the said Property to any Purchaser(s) at the selling price of
Ringgit Malaysia RM
) only or nearest offer to be agreed by the Vendor (“Purchase Price”) subject to the following terms
and conditions :-
1,1. In consideration of XYZ Realty providing the service for the sale of the said Property, the Vendor hereby agrees to pay XYZ Realty a
professional fee equivalent to 3.00% / % of the Sale Price of the said Property, OR a professional fee equivalent to RM
plus % Sales and Services Tax (SST) on the professional fees upon the sale of the said Property to any
Purchaser(s) procured and/or introduced by XYZ Realty on the terms specified herein and upon the execution of the formal Sale and Purchase
Agreement (‘SPA’).

XYZ Realty is hereby authorized to collect and accept from the Purchaser(s) on behalf of the Vendor a sum equivalent to 3.50% of the Sale
i

Price or best offer (‘Earnest Deposit’) as Stakeholder. XYZ Realty is authorized to deduct the said agreed professional fee and SST due fram
the Eamest Deposit upon execution of the SPA before releasing the balance (if any) to the Vendor. In the event the said Earnest Deposit is
insufficient to pay XYZ Realty’s full professional fees and SST, the Vendor hereby undertakes and agrees to make good the shortfall
immediately.

In the event Eamest Deposit has been paid and the sale transaction is aborted by the Vendor or by the Purchaser(s) before the execution of
i

the SPA the Vendor agrees to pay XYZ Realty a professional fee equivalent to 50% of the Earnest Deposit or forfeitable deposit or 50% of the
agreed full fees, whichever is lesser, plus the relevant applicable SST.

. The Vendor agrees to fully indemnify XYZ Realty against all losses/damages or claims by the Purchaser(s) if the Vendor for any reason
whatsoever fails to execute, or does not proceed with the execution of, the SPA after the Earnest Deposit has been paid or collected.

The Vendor hereby authorizes XYZ Realty to utilize any form of advertisement to promote the sale of the said Property, including but not
limited to putting up a “For Sale” signboard at the said Property or to advertise the said Property through any form of media.

This instruction contained herein is given to XYZ Really in the Vendor's capacity as: (DELETE whichever not applicable)
o

a) The registered proprietor / absolute beneficial owner of the said Property; or

b) Trustee for the legal owner(s) of the said Property / Personal Representative (Executor or Administrator) of the owner(s) (deceased), or
c) Attorney of the registered proprietor / duly authorized representative of the owner(s) pursuant to a Power of Attorney dated

. Terms and Conditions of Sale:

~

a) 10% of the Purchase Price of the said Property (inclusive of Earnest Deposit) to be paid by the Purchaser(s) upon execution of the SPA.
b) The balance 90% of the Purchase Price to be paid within three (3) months from the date of execution of the SPA OR date of receipt by the
Purchaser's Solicitors of the Developer's Confirmation / Developer's Consent / State Authority's Consent / Statutory Body Consent and/or
the issuance of the Certificate of Completion and Compliance / Certificate of Fitness, whichever is later and whichever is applicable.
c) An extension of a further (___) months may be granted to the Purchaser(s) to enable him to settle in full whatever is the
outstanding balance, provided interest is chargeable on the unpaid balance at % ( percent) per annum calculated
on a day to day basis.
ona
d) The said Property is sold on an “As Is Where Is” basis with vacant possession / without vacant possession’ (i.e. subject to an existing
tenancy) and subject to the inventory list as per attached (if any). “Delete whichever not applicable.

Signed by the registered proprietor!

beneficial owner of the said Property Witnessed by:

Name: Name:
NRIC: NRIC:
Contact No.: Contact No.:
Address: Address:
DATE: DATE:
 Letterhead

EXCLUSIVE AUTHORIZATION TO LET No.

I/We
1/We (NRIC No
) the is dit ial owner(s)
(“the Landlord”) for the property held under title bearing the
postal address of
( “said Property”)
hereby appoint you XYZ Realty as my/our EXCLUSIVE AGENT for a period of ( calendar months
commencing fromthe _ day of. 20___andexpiringonthe _day of
20___andexpiringonthe__day 20___ (“Exclusive Period”)
for the rental of the said Property to any Tenant at the rental price of RM. (Ringgit Malaysia
only) or the
nearest offer to be agreed by the Landlord subject to the following terms and conditions :

. The Landlord hereby agrees to pay XYZ Realty a p' i fee of RM or a fee eq)eqi to
month(s)’ Rental plus % Sales & Services Tax (“SST”) on the professional fees :
a) Upon the rental of the said Property to any Tenant procured and/or introduced by XYZ Realty during the Exclusive
Period, and any extension thereof, on the terms specified herein and upon the execution of the Tenancy Agreement ; OR
b) Even if the said Property is rented, or contracted to be rented by the Landlord personally and enters into a formal Tenancy
Agreement with a Tenant(s) who was introduced or procured by XYZ Realty prior to the expiry of the Exclusive Period;
OR
c) Even if after the expiry of the Exclusive Period, the Landlord enters into a Tenancy Agreement with a Tenant who was
introduced and/or procured by XYZ Realty prior to the expiry of the Exclusive Period.
This exclusive authorization to let the said Property shall remain valid during the said Exclusive Period. The said Exclusive
== &

Agency shall expire at the end of the term unless it is renewed by the Landlord and XYZ Realty by mutual consent.
XYZ Realty is hereby authorized to collect and accept from the Tenant on behalf of the Landlord a sum equivalent to ONE
month’s rental or any sum subsequently agreed by the Landlord (“Earnest Deposit”) as Stakeholder. XYZ Realty is
authorized to deduct the said agreed professional fee and SST due from the Earnest Deposit before releasing the balance (if
any) to the Landlord. In the event the said Earnest Deposit is insufficient to pay XYZ Realty’s full professional fees and the
relevant SST, the Landlord hereby undertakes and agrees to make good the shortfall immediately.
In the event Earnest Deposit has been paid and the rental transaction is aborted by the Landlord or by the Tenant before the
execution of the Tenancy Agreement, the Landlord agrees to pay XYZ Realty a professional fee equivalent to 50% of the
Earnest Deposit or forfeitable deposit or 50% of the agreed full fees, whichever is less plus the relevant applicable SST.
The Landlord agrees to fully indemnify XYZ Realty against all losses/damages or claims by the Tenant if the Landlord for
bad

any reasons whatsoever fail to execute, or does not proceed with the execution of, the Tenancy Agreement after the Earnest
Deposit has been paid or collected.
The Landlord hereby authorizes XYZ Realty to utilize any form of advertisement to promote the rental of the said Property,
aa
ta

including but not limited to putting up a “TO LET” signboard at the said Property or to advertise the said Property through the
media or internet.
This instruction contained herein is given to XYZ Realty in the Landlord’s capacity as: (DELETE where not applicable}
7”
”

a) The registered proprietor / absolute beneficial owner of the said Property; or

b) Trustee for the legal owner(s) / Personal Repr ive (Executor or Admini ‘) of the owner(s) (deceased); or
c) Attorney of the registered proprietor / duly authorized representative of the Owner(s) pursuant to a Power of Attorney
dated

Terms and Conditions of Payment:

bal
‘al

a) Advance Rental :RM ( months

b) Security Deposit :RM le( months
c) Utility Deposit (Electricity, Water & Sewerage) 7RM
:RM if )
d) Other terms and conditions (if any)

9. I/We hereby declare that I/We have not appointed any other estate agency as of this date of appointment.

Signed by the registered proprietor/

beneficial owner of the said Property Witnessed by:

Name: Name:
NRIC: NRIC:
Contact No.: Contact No.:
Date: Date:
Letterhead

GENERAL AUTHORIZATION TO LET No..

We
(NRIC No ) the is d/t ial
owner(s) (“the Landlord”) for the property held under title bearing
the postal address
(“said Property”) hereby
appoint you XYZ Realty as my/our AGENT for the rental of the said Property to any Tenant at the rental price of
Ringgit Malaysia
(RM ) only or the nearest offer to be agreed by the Landlord subject to the following terms and conditions:

. The Landlord hereby agrees to pay XYZ Realty a ional fee of RM or a fee aqi ivalent to
month(s) Rental, plus % Sales and Services Tax (“SST”) on the professional fees, upon the rental of
the said Property to any Tenant procured and/or introduced by XYZ Realty on the terms specified herein and upon
the execution of the Tenancy Agreement.

. XYZ Realty is hereby authorized to collect and accept from the Tenant on behalf of the Landlord a sum equivalent
to ONE month’s rental or any sum subsequently agreed by the Landlord (“Earnest Deposit”) as Stakeholder.
XYZ Realty is authorized to deduct the said agreed professional fee and SST due from the Earnest Deposit before
releasing the balance (if any) to the Landlord. In the event the said Earnest Deposit is insufficient to pay XYZ
Realty’s full professional fees and the relevant SST, the Landlord hereby undertakes and agrees to make good the
shortfall immediately.

. In the event Earnest Deposit or forfeitable deposit has been paid and the rental transaction is aborted by the
Landlord or by the Tenant before the execution of the Tenancy Agreement, the Landlord agrees to pay XYZ Realty
a professional fee equivalent to 50% of the Earnest Deposit or 50% of the forfeitable deposit or 50% of the agreed
full fees, whichever is less, plus the relevant applicable SST.

The Landlord agrees to fully indemnify XYZ Realty against all losses/damages or claims by the Tenant if the
>=

Landlord for any reasons whatsoever fail to execute, or does not proceed with the execution of, the Tenancy
Agreement after the Earnest Deposit has been paid or collected.

. The Landlord hereby authorizes XYZ Realty to utilize any form of advertisement to promote the rental of the said
wn

Property, including but not limited to putting up a “TO LET” signboard at the said Property or to advertise the said
Property through any form of media.

. This instruction stated herein is given to XYZ Realty in the Landlord’s capacity as: (Delete whichever not
applicable)
a) The registered proprietor / absolute beneficial owner of the said Property; or
b) Trustee for the legal owner(s) of the said Property / Personal Representative, Executor/Administrator of the
owner(s) (deceased), or
c) Attorney of the registered propeitorionly
propeitoionly authorized representative of the legal owner(s) pursuant to a Power of
Attorney dated

. Terms and Condition of Payment:

a) Advance Rental :RM ) months
b) Security Deposit :RM months
c) Utility Deposit :RM
d) Other terms and conditions (if any)

Signed by the registered proprietor/

beneficial owner of the said Property Witnessed by:

Name: Name:
NRIC: NRIC:
Contact No.: Contact No.:
Address: Address:
Date: Date:
Letterhead

AUTHORIZATION TO SECURE A PROPERTY FOR ACQUISITION No.

We (NRIC No
) of
(“the Prospective Purchaser”)
do hereby appoint you XYZ Realty as my/our AGENT for a period of __( ) days/calendar months*
commencing from the _ day of____
of___ 20__and expiring onthe ___ day of ____ 20__ (“Agency Period”) to secure a
property for purchase (“said Property”) at a total consideration for the said Property which shall not exceed Ringgit
Malaysia
only (RM ) or other such sum as may be subsequently agreed by the
Prospective Purchaser (“Sale Price”) subject to the following terms and conditions:

. The Prospective Purchaser hereby authorizes XYZ Realty to utilize any form of advertisement to promote the
acquisition of the said Property, including but not limited to sending out flyers, or advertising in any form of media.

2. A brief description of the Prospective Purchaser’s requirements is as follows:

a. Type of Property:
b. Location of Property:
c. Tenure (Freehold / Leasehold):
d. With or without Vacant P. i
e. Others:

3. This instruction contained herein is given to XYZ Realty in my/our capacity as the Prospective Purchaser. This
authorization to secure/acquire a property for purchase shall remain valid during the said Agency Period.

4. The Prospective Purchaser hereby agrees to pay XYZ Realty a ional fee of RM ora
professional fee equivalent to % of the Purchase Price, plus % Sales and Services Tax (“SST”) on
the professional fees upon the acquisition of the said Property (even if it differs from Clause 2) from any Vendor(s)
procured and/or introduced by XYZ Realty during the Agency Period on the terms specified herein and upon the
execution of the formal Sale and Purchase Agreement (“SPA”).

5. In the event the Earnest Deposit has been paid and the acquisition transaction is aborted by the Prospective
Purchaser or by the Vendor(s) before the execution of the SPA the Prospective Purchaser agrees to pay XYZ
Realty a professional fee equivalent to 50% of the Earnest Deposit or forfeitable deposit or 50% of the agreed full
fees, whichever is lesser plus the relevant applicable SST.

. The Prospective Purchaser agrees to indemnify XYZ Realty against all losses/damages or claims by the Vendor(s)
a

if the Prospective Purchaser for any reasons whatsoever fail to execute, or does not proceed with the execution of,
the SPA after the Earnest Deposit has been paid or collected and the Prospective Purchaser’s offer to purchase has
been accepted by the Vendor(s).

Signed by the Prospective Purchaser Witnessed by:

Name: Name:
NRIC: NRIC:
Designation: Designation:
Company Stamp: Company Stamp:
Contact No.: Contact No.:
Address: Address:
Date: Date:
Letterhead

AUTHORIZATION TG
TO SECURE A PROPERTY FOR RENT No.

I/We (NRIC No
)bYof
(“the Prospective Tenant”)
do hereby appoint you XYZ Realty as my/our AGENT for a period of __ days/calendar months*
commencing from the __ day of. 20___and expiring onthe __dayof__20__
_dayof__20__ (“Agency Period”) to secure
a property for rent (“said Property”) at a total consideration for the said Property which shall not exceed Ringgit
Malaysia
only (RM ) or other sum as may be subsequently agreed by the Prospective
Tenant (“Rental Price”) subject to the following terms and conditions:

. The Prospective Tenant hereby authorizes XYZ Realty to utilize any form of advertisement to promote the
acquisition of the said Property for rent, including but not limited to sending out flyers, or advertising in any form
of media.

2. A brief description of the Prospective Tenant’s requirements is as follows:

a. Type of Property:
b. Location of Property:
c. No. of Rooms and Baths:
d. Others:

3. This instruction contained herein is given to XYZ Realty in my/our capacity as the Prospective Tenant. This
authorization to secure a property for rent shall remain valid during the said Agency Period.

. The Prospective Tenant hereby agrees to pay XYZ Realty a ional fee of RM oraa
or
s

professional fee equivalent to month(s)’ Rental, plus % Sales & Services Tax (“SST”) on the
professional fees upon the rental of the said Property (even if it differs from Clause 2) from any Landlord(s)
procured and/or introduced by XYZ Realty during the Agency Period on the terms specified herein and upon the
execution of the Tenancy Agreement (“TA”).

. In the event the Earnest Deposit has been paid and the rental transaction is aborted by the Prospective Tenant or by
a

the Landlord(s) before the execution of the TA the Prospective Tenant agrees to pay XYZ Realty a professional fee
equivalent to 50% of the Earnest Deposit or forfeitable deposit or 50% of the agreed full fees, whichever is less,
plus the relevant applicable SST.

. The Prospective Tenant agrees to indemnify XYZ Realty against all losses/damages or claims by the Landlord(s) if
a

the Prospective Tenant for any reasons whatsoever fail to execute, or does not proceed with the execution of, the
TA after the Earnest Deposit has been paid or collected and the Prospective Tenant’s offer to rent has been
accepted by the Landlord(s).

Signed by the Prospective Tenant Witnessed by:

Name: Name:
NRIC: NRIC:
Designation: Designation:
Company Stamp: Company Stamp:
Contact No.: Contact No.:
Address: Address:
Date: Date:
Letterhead

To

Attention
Date: 2 Fax
Dear Sir / Madam,
Re: Co-agency arrangement for the rental of the property at:

We refer to the telephone conversation between your

(hp: ) and our (hp:

) and hereby agree to enter into a co-agency agreement with your Company
on the rental of the above property, subject to the following terms and conditions of co-agency:
11; Upon the successful rental transaction for the above mentioned property, we will share % of
the Rental Price or RM , plus % SST (if any) with your Company on
a %%: : % basis. The agreed co-agency professional fees shall be payable to your
Company upon the execution of the Tenancy Agreement, or upon

and upon our receipt of the payment of the professional fees from the Landlord.

In the event that the transaction is subsequently aborted and whereby we are entitled to a fee, then
your Company shall be paid 50% of the agreed abortive fees subject to, and upon, our receipt of the
said fees from the Landlord.

The Eamest Deposit shall be held by XYZ Realty E ( _ ), as the stakeholder and our
Agreement to Rent document shall be used for the said transaction as the LISTING AGENT.

It is mutually understood that under the terms of this co-agency agreement and arrangement, neither
of the Real Estate Negotiators (REN) from our respective Companies shall conduct any direct
negotiations with the other Company’s Client. In addition, each Company’s REN is responsible for
exercising sufficient control over their respective Clients to prevent their Clients from contacting the
other co-agent, or the other REN’s Client directly.

All other terms shall be in accordance to the Valuers, Appraisers and Estate Agents Act 1981 and
Rules 1986 (As amended).

If the above co-agency agreement’s stated terms and conditions are acceptable to you, please indicate
your acceptance by signing and returning the duly signed copy of this agreement to us, by fax /email,

Yours faithfully, We hereby confirm our acceptance of the above stated

XYZ Realty terms and conditions of the co-agency arrangement

Name of Principal Name

Registered Estate AgentE Designation
Principal/Director E-Number
Company Stamp
Letterhead

To

Attention
Date : Fax:

Dear Sir / Madam,

Re: Co-agency arrangement for the sale of a property at

We refer to the telephone conversation between your (hp:

and our (hp:
and hereby agree to enter into a co-agency agreement with your Company
on the sale of the above property, subject to the following terms and conditions of co-agency:

[Link] Upon the successful sale transaction for the above mentioned property, we will share % of
the Selling Price or RM » plus % SST (if any) with your
Company on a %: % basis. The agreed co-agency professional fees shall be payable to
your Company upon the execution of the Sale and Purchase Agreement, or upon

and upon our receipt of the payment of the professional fees from the Vendor.

In the event that the transaction is subsequently aborted and whereby we are entitled to a fee, then
your Company shall be paid 50% of the agreed abortive fees subject to, and upon, our receipt of the
said fees from the Vendor.

The Earnest Deposit shall be held by XYZ Realty E(_)__

E(_) __ _ _ as the stakeholder and our
Agreement to Purchase document shall be used for the said transaction as the LISTING AGENT.

It is mutually understood that under the terms of this co-agency agreement and arrangement, neither
of the Real Estate Negotiators (REN) from our respective Companies shall conduct any direct
negotiations with the other Company’s Client. In addition, each Company’s REN is responsible for
exercising sufficient control over their respective Clients to prevent their Clients from contacting
the other co-agent, or the other REN’s Client directly.

All other terms shall be in accordance to the Valuers, Appraisers and Estate Agents Act 1981 and
Rules 1986 and the Malaysian Estate Agency Standards 2014.

If the above co-agency agreement’s stated terms and conditions are acceptable to you, please indicate
your acceptance by signing and returning the duly signed copy of this agreement to us by fax / email.

Yours faithfully, We hereby confirm our acceptance of the above

XYZ Realty stated terms and condition of the co-agency agreement

Name of Real Estate Agent Name

Principal/Director with E- No. Designation & E-No
Designation
Company’s Stamp
 PROPERTY VIEWING ACKNOWLEDGEMENT
14,1. CLIENT’S PARTICULARS

Mr/MrsiMs
Mr/Mrs/Ms :

Address

Tel (0)
Tel (0)
Tel (H)
Tel (H)

Fax

Called On :

Refer by :

. PROPERTY PROPOSED / VIEWED

nN

Property Owner / Agent Viewing Price

No Date / Time Remarks

1.

iis

|/ We acknowledge and confirm that | // We have inspected the above-mentioned property / properties that were
obtained through the efforts and services rendered by XYZ Realty E(_) . Should | / We, my nominee or
company in which | have an interest in, be interested on any of the above property / properties, | will negotiate
with the Owner / Landlord through XYZ Realty only.

D 1
pective
Prospective
Pre Tenant
/ P'P Negotiator in Attendance

NRIC No:

Date:
Letterhead

AGREEMENT TO PURCHASE No.

TO:
DESCRIPTION OF SAID PROPERTY:

PRICE: RM EARNEST DEPOSIT: RM

EXECUTION OF THE SALE AND PURCHASE AGREEMENT:

1. The Purchaser(s) hereby undertakes to execute the Sale and Purchase Agreement (SPA) incorporating, inter alia, the agreed terms and
conditions stated herein within the said Period of ) full working days (excluding Saturdays, Sundays and Public
Holidays) from the date of acceptance of this offer by the Vendor(s).
In the event that the Purchaser(s) fails to and/or refuses to execute the SPA within the said Period, the Earnest Deposit shall be forfeited by
nN

the Vendar(s) as agreed liquidated damages PROVIDED that there is no delay on the part of the Vendor(s) or Vendor(s)'s Solicitor in
agreeing to the terms and conditions of the SPA, and PROVIDED always that the non-execution of the SPA by the Purchaser(s) is not
caused by, or atri to, the Vendor's and/or fraudulent acts. Thereinafter upon such forfeiture, this
Agreement shall be terminated and be null and void and neither party shall have any further claims whatsoever against each other.
3. In the event that the Vendor(s) fails to and/or refuses to execute the SPA or to complete the sale transaction within the said Period, the
Vendor(s) shall refund to the Purchaser(s) free of interest the said Earnest Deposit, together with a compensation sum equivalent to the
Earnest Deposit as agreed liquidated damages, and thereinafter this Agreement shall be terminated and be null and void and neither party
shall have any further claims whatsoever against each other; failing which the Purchaser(s) shall be entitled to seek specific performance,
and/or damages, of this Agreement.

TERMS OF AGREEMENT
pp
pa

PAYMENT OF THE PURCHASE PRICE

1. Upon the execution of the SPA, the Purchaser(s) shall pay to the Vendor(s) ten percent (10%) of the Purchase Price (less such sums
paid as Earnest Deposit)
2. The balance of the Purchase Price shall be paid to the Vendor(s) within three (3) / (___.) months* from the date of execution
of the SPA or date of receipt by the Purchaser's Solicitors of the *Developer’s
“Developer's Confirmation / Developer's Consent / State Authority's
Consent/ Statutory Body Consent and/or the issuance of the Certificate of Completion and Compliance / Certificate of Fitness, whichever
is later, and whichever is applicable, failing which, the Vendor(s) shall grant to the Purchaser(s) an extension of___(____)
of__(___) month(s)
and in consideration thereof, the Purchaser(s) shall pay interest at the rate of % (_____ percent) per annum on the balance
Purchase Price, or such sums as shall remain outstanding calculated on a day to day basis. * Delete whichever not applicable.
CONDITIONS OF TITLE & DELIVERY OF POSSESSION
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Lad

The sale of the said Property is sold on an “As Is Where Is” basis, with vacant possession / without vacant possession’ (i.e. legal
possession and subject to an existing tenancy) and free of encumbrances but subject to all conditions of title, express or implied, in the
document of title. The Vendor(s) shall deliver vacant / legal possession* (subject to an existing tenancy) of the said Property to the
Purchaser(s) upon receipt of the full balance of the Purchase Price. *Delete whichever not applicable.
C. LEGALLY ENFORCEABLE DOCUMENT
The parties hereto expressly agree that notwithstanding the payment and clearance of the cheque for the said Earnest Deposit, this
Agreement to Purchase shall only take effect upon the signing of this Agreement to Purchase by both the Vendor(s) and the Purchaser(s);
and notwithstanding that the SPA execution is pending, this Agreement to Purchase, when executed by both the Purchaser(s) and the
Vendor(s), shall constitute a legally binding document between the parties herein.
D. OTHER CONDITIONS

\We the Purchaser(s), having inspected the said Property, hereby attach herewith re
ie sum of RM (Cash/Cheque No.
) payable to XYZ Realty as being Earnest Deposit
towards the purchase of the said Property. In the event the Vendors)
Vendor(s) rejects i
ie offer, the said Earnest Deposit shall be refunded to me/us
immediately the Purchasers,
Purchaser's, free of interest.

PURCHASER(S): ACCEPTED BY VENDOR(S):

Name (1) ; Name (1)

NRIC No. (1) NRIC No. (1)
Name (2) Name (2)
NRIC No. (2) NRIC No. (2)
Address & Hp Address & Hp:

WITNESSED BY: WITNESSED BY:

Name : Name 3
NRIC No. ; Date: NRIC No. ¢: Date
 Letterhead

AGREEMENT TO RENT No.

V/We NRIC No/Passport

on behalf of hereby confirm I/We wish to rent the said property
known as

by paying an Earnest Deposit of RM (Ringgit Mal

which is equivalent to ( ) month’s rental of the said property.

i,i: The following are the terms and conditions of renting the said property:-
Advance Rental :RM iciC ) month (s)
Security Deposit :RM ( ) month (s)
Utility Deposit :RM ({ )
Period Of Tenancy : (___) years effective from to
Option to Renew rF years effective from to

2; It is hereby mutually agreed that the following items shall be attended to on or before the day of 20. 2

3. Other Special Conditions:

4. Vacant possession shall be given to the undersigned on or before the day of 20 if /We make
all the
the necessary
necessary payments on
on oror before the
the day ofof 20 and/or pay
and/or pay RM
as stamping and service charges.

5; I/We undertake to sign the Tenancy Agreement on or before the day of 20.
20 5

6. In the event that I/We, the Tenant, shall fail to sign the said Tenancy Agreement within the stipulated time, I/We hereby fully
agree that the said Earnest Deposit shall be forfeited as pre-agreed liquidated damages.
He7. In the event that the Landlord accepts this offer and later refuses to and/or neglects to and/or fails to, for any reason whatsoever,
to sign the Tenancy Agreement or to complete the rental transaction within the stipulated time, the Landlord shall refund to the
Tenant, free of interest, the said Earnest Deposit together with a sum equivalent to the Earnest Deposit, as compensation.

8. The parties hereto expressly agree that notwithstanding the payment and clearance of the cheque for the said Eamest Deposit,
this Agreement to Rent shall only take effect upon the signing of this Agreement to Rent by both the Landlord(s) and the
Tenant; and notwithstanding that the Tenancy Agreement execution is pending, this Agreement to Rent, when executed by both
the Landlord(s) and the Tenant, shall constitute a legally binding document between the parties herein.

9. VWe hereby attach herewith the sum of RM (Cash/Cheque No.: ) payable to

XYZ Realty as k / being Earnest Deposit towards the
rental of the said property. In the event the Landlord rejects this offer, the said Earnest Deposit shall be refunded free of interest
to me/us, the Tenant, in full.

Signed by the Said Tenant (s) Signed by the Said Landlord(s)

Name
NRIC No.
Address
Address

Witnessed by : Witnessed By :
Name 4x Name
NRIC No. : NRIC No.
DATE 2a Date
 EJEN HARTA TANAH

VIEWER’S ACKNOWLEDGEMENT ON PROPERTIES INSPECTED

Details ive Tenant / Purchaser

Name: Tel: Car No.:

Appointment Date: Time:

|/ /We
We hereby confirm that we have viewed and inspected the following properties through the
efforts and services rendered by REN No.
from

ADDRESS OF PROPERTY PRICE (RM) | REMARKS

If We or my nominee or company/(ies) in which | may have an interest in, be interested on any

of the above property/(ies), I/we will negotiate with the Vendor(s) / Landlord(s) through
only.

Name of Client: Real Estate Negotiator:

NRIC No.: REN No.:
Date: NRIC No.:
Date:
 ee
egress