In Malaysia, opening a real estate office may be a worthwhile experience. Being a business requires a great deal of effort because the hours are lengthy and you might have to sacrifice weekends. Furthermore, dealing with clients can be challenging, demanding, and draining. However, the feeling of accomplishment you get when you eventually complete a transaction may be quite satisfying.
The effects of the epidemic are currently causing disruption in Malaysia and the international real estate market. The recent boom in the real estate market has clearly started to cool off, and our nation is not an exception to the pattern. However, the fundamental reality is that there will always be a market for real estate. According to Real Estate Highlights’ most recent study, the local industrial sector has experienced consistent development in recent years, mostly as a result of increased e-commerce penetration.
What you need to know about starting a Real Estate Agency in Malaysia
1. The Board of Valuers, Appraisers, Estate Agents, and Property Managers requires all realtors to be registered (BOVAEA). Also known as Lembaga Penilai, Pentaksir, Ejen Harta Tanah & Pengurus Harta, LPPEH was formed to oversee and control agents under the jurisdiction of the Ministry of Finance. The Malaysian Estate Agency Standards govern all real estate agencies and businesses.
2. A real estate agent must be owned or started by a licensed real estate agent registered with BOVAEA. The nature of the company can be:
- Sole proprietorship – proprietor must be registered
- Partnership – both partners must be registered
- Sdn. Bhd. (Corporate Company) – minimum of two directors to be registered
3. The difference between REA and REN
There is a distinction between A Real Estate Agent (REA) and a Real Estate Negotiator (REN).
REA: To become a REA, one must obtain a license and pass a number of tests. They must next complete two years of field training and pass a test of professional competence to get a diploma in estate agency.
REN: RENs must be accredited and registered with BOVAEA but lack a license. To work in the field, they must also complete a Negotiator’s Certification Course and join an agency.
4. A real estate company is only permitted to have a maximum of 20 REN for every certified REA.
5. A fee of 3 percent of the property’s worth and a fee of 10 percent of the sale price of any machinery, furniture, or other items can be charged by an agency or company.
In Malaysia, opening an agency is a rewarding career step, but it doesn’t end with establishing the business. You must make sure that your company is well-known and trending in the real estate industry.
Everything needs to be taken care of, including employing the correct employees, leasing serviced offices, and having good website design and development. You may consider starting a real estate agency in Malaysia with the support of Boss Boleh!
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