1 PART I PRELIMINARY-1. Short title and application.

This Act may be cited as the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 and shall apply throughout Malaysia.

[Am. Act A1550:s.3]

2 PART I PRELIMINARY-2. Interpretation.

In this Act, unless the context otherwise requires:

  "Appeal Board"  means the Appeal Board established under section 28;

  "applicant"  means an individual registered valuer, appraiser, estate agent or property manager, or a registered valuation, appraisal, estate agency or property management firm, as the case may be;

["applicant" Subs. Act A1550:s.4]

  "authority to practise"  means an authority to practise in the prescribed form issued by the Registrar under section 16;

  "Board"  means the Board of Valuers, Appraisers, Estate Agents and Property Managers established under section 9

["Board" Subs. Act A1550:s.4]

  "Director General"  means the Dir

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Legal Commentary on the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 - Section 2

Introduction

The Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (VAEA) serves as a regulatory framework for professionals in the real estate sector in Malaysia. Section 2 of this Act outlines the definitions and essential terms that are foundational for understanding the roles and responsibilities of valuers, appraisers, estate agents, and property managers.

What does Section 2 Say

Section 2 provides definitions for key terms used throughout the Act, including "valuer," "appraiser," "estate agent," and "property manager." This section is crucial for establishing the legal context within which these professionals operate.

Essential Ingredients

• Definitions: Clear definitions of the roles and responsibilities of each professional category.
• Scope of Practice: Establishes the boundaries within which these professionals must operate.
• Regulatory Framework: Sets the stage for the regulatory oversight provided by the Board of Valuers, Appraisers, and Estate Agents.

Scope of Section

The scope of Section 2 extends to all individuals and entities engaged in valuation, appraisal, estate agency, and property management. It ensures that all practitioners are aware of their legal definitions and the implications of their roles.

Punishment for Section

While Section 2 itself does not prescribe specific penalties, violations of the definitions and roles established in this section may lead to disciplinary actions as outlined in other sections of the Act, including fines and disqualification from practice.

Legal Comments

• Keyword - Definition Clarity - Section 2 provides essential definitions that clarify the roles of valuers, appraisers, estate agents, and property managers, ensuring a common understanding within the industry. [Source Reference]
• Keyword - Regulatory Authority - The Act establishes a Board responsible for regulating these professions, enhancing accountability and professionalism in the real estate sector. [Source Reference]
• Keyword - Professional Standards - By defining roles, Section 2 sets a standard for professional conduct and expectations, which is critical for maintaining industry integrity. [Source Reference]
• Keyword - Scope of Practice - The definitions in Section 2 delineate the scope of practice for each profession, preventing overlap and confusion in responsibilities. [Source Reference]
• Keyword - Legal Framework - This section is foundational for the legal framework governing real estate practices in Malaysia, providing a basis for further regulations and amendments. [Source Reference]
• Keyword - Disciplinary Measures - While Section 2 does not specify penalties, it lays the groundwork for disciplinary measures that can be applied for breaches of defined roles. [Source Reference]
• Keyword - Professional Registration - The Act mandates registration for valuers, appraisers, and estate agents, ensuring that only qualified individuals operate in the industry. [Source Reference]
• Keyword - Consumer Protection - By regulating these professions, the Act aims to protect consumers from malpractice and ensure fair practices in real estate transactions. [Source Reference]
• Keyword - Amendments - The Act has undergone amendments to expand its scope, including the regulation of property managers, reflecting the evolving nature of the real estate industry. [Source Reference]
• Keyword - Ethical Standards - The definitions provided in Section 2 support the establishment of ethical standards that practitioners must adhere to, promoting trust in the industry. [Source Reference]
• Keyword - Professional Development - The Act encourages ongoing professional development and adherence to standards, which is vital for maintaining competency in the field. [Source Reference]
• Keyword - Industry Growth - By providing a clear regulatory framework, Section 2 contributes to the growth and stability of the real estate industry in Malaysia. [Source Reference]
• Keyword - Clarity in Transactions - The definitions help clarify the roles of professionals in real estate transactions, reducing disputes and misunderstandings. [Source Reference]
• Keyword - Accountability - The establishment of a regulatory board enhances accountability among professionals, ensuring compliance with the Act. [Source Reference]
• Keyword - Public Confidence - Clear definitions and regulations foster public confidence in the real estate sector, encouraging investment and participation. [Source Reference]
• Keyword - Comprehensive Regulation - The Act's comprehensive approach to defining roles ensures that all aspects of real estate practice are covered, promoting a holistic regulatory environment. [Source Reference]
• Keyword - Legal Compliance - Professionals are required to comply with the definitions and regulations set forth in the Act, ensuring legal adherence in their practices. [Source Reference]
• Keyword - Professional Integrity - The Act aims to uphold professional integrity by clearly defining roles and responsibilities, which is essential for the credibility of the industry. [Source Reference]
• Keyword - Future Amendments - The framework established in Section 2 allows for future amendments to adapt to changes in the real estate landscape, ensuring ongoing relevance. [Source Reference]

3 PART II APPOINTMENT, DUTIES AND POWERS OF DIRECTOR GENERAL OF VALUATION AND PROPERTY SERVICES AND OTHER OFFICERS-3. Director General and other officers.

(1) There shall be appointed within the Ministry of Finance an officer to be styled as the Director General of Valuation and Property Services and such number of Deputy Directors General, Directors and officers as may be required for the administration of this Act.

(2) After a date fixed by order of the Minister published in the Gazette no person shall be appointed to the office of Director General, Deputy Director General or Director unless he is a registered valuer.

4 PART II APPOINTMENT, DUTIES AND POWERS OF DIRECTOR GENERAL OF VALUATION AND PROPERTY SERVICES AND OTHER OFFICERS-4. Functions and duties of Director General.

(1) The functions of the Director General shall be:

(a) to carry out the duties conferred on him by this Act;

(b) to collect and collate:

(i) such information as the Director General thinks necessary to assist officers and valuers in the making of valuation; and

(ii) such information as the Director General thinks necessary on all or any property-related matters;

(ba) to publish information collected and collated under paragraph (b) , except where such information has been classified as confidential by, or on behalf of, the Government or any State Government;

[Ins. by Act A980, Am. by Act A1056]

(bb) to provide information and advice to the Government and any State Government or any person on property-related matters;

[Ins. by Act A1056]

(bc) to

5 PART II APPOINTMENT, DUTIES AND POWERS OF DIRECTOR GENERAL OF VALUATION AND PROPERTY SERVICES AND OTHER OFFICERS-5. Access to lands, buildings, etc.

(1) The Director General or any officer authorised by him may:

(a) when reasonably necessary for the purposes of carrying out the Director General's functions under this Act, enter at all reasonable hours into and upon any land, building or premises, and inspect the same without liability for trespass;

[Am. by Act A1056]

(b) put either verbally or in writing to the owner or his agent or the person in occupation or charge of that land, building or premises any relevant questions to enable him to perform his functions under this Act professionally; and

[Am. by Act A1056]

(c) inspect any books, documents and papers in the charge of any person, including a public officer, for the purpose of carrying out his functions under this Act and without charge take extracts therefrom.

[Am. by Act A1056]

6 PART II APPOINTMENT, DUTIES AND POWERS OF DIRECTOR GENERAL OF VALUATION AND PROPERTY SERVICES AND OTHER OFFICERS-6. Submission of relevant information.

(1) The Director General may require the submission to him by any person of any relevant information necessary for the carrying out of his functions under this Act on a form within a stated period, such form and period to be prescribed by the Minister.

[Am. by Act A1056]

(2) The information required under subsection (1) shall include:

(a) details of sales, purchases, results of auctions and tenders, lettings and leases; and

(b) such other information as the Director General thinks necessary for the carrying out of his functions under this Act.

[Subs. by Act A1056]

(3) If after being informed of the purpose in requiring the information and of the authority so to do, any person refuses to submit the required information within the prescribed period or wilfully supplies any false information, he commits an offence and

7 PART II APPOINTMENT, DUTIES AND POWERS OF DIRECTOR GENERAL OF VALUATION AND PROPERTY SERVICES AND OTHER OFFICERS-7. Power of delegation.

(1) For the purposes of carrying out the objects and purposes of this Act and exercising his powers, duties and functions, the Director General may, with the approval of the Minister, delegate to any officer under his administrative control any of his powers, duties and functions under this Act.

(2) Any such delegation may be made in respect of any particular matter or any class of matters or generally or may be limited to any part of Malaysia and may be made subject to such terms and conditions as the Director General thinks fit.

(3) Any delegation under this section shall be revocable at will and shall not prevent the exercise or performance of any powers, duties or functions by the Director General.

8 PART II APPOINTMENT, DUTIES AND POWERS OF DIRECTOR GENERAL OF VALUATION AND PROPERTY SERVICES AND OTHER OFFICERS-8. Minister may make rules.

The Minister may make rules as may be necessary for the better carrying out or giving effect to the provisions of this Part.

9 PART III BOARD OF VALUERS, APPRAISERS, ESTATE AGENTS AND PROPERTY MANAGERS-9. Board of Valuers, Appraisers, Estate Agents and Property Managers.

[Shoulder note Am. Act A1550:s.6]

(1) There shall be established a board to be called the Board of Valuers, Appraisers, Estate Agents and Property Managers which shall be a body corporate with perpetual succession and a common seal and which may sue and be sued.

[(1) Am. Act A1550:s.6]

(2) The Board shall consist of the following members to be appointed by the Minister:

(a) the Director General who shall be the President of the Board;

(b) six registered valuers from the public service;

(c) four registered valuers who have had at least six years' professional experience as valuers and have been nominated by the Institution of Surveyors (Malaysia) or other professional body that the Board may from time to time recognise to represent valuers;

(cc) three registered estate agents nominated by the President of

10 PART III BOARD OF VALUERS, APPRAISERS, ESTATE AGENTS AND PROPERTY MANAGERS-10. Functions of the Board.

The functions of the Board shall be:

(a) to keep and maintain the Register, Register of Probationers and Register of Firms;

[(a) Am. Act A1550:s.7]

(b) to approve or reject applications for registration under this Act or to approve any such application subject to such conditions and restrictions as it may deem fit to impose;

[Am. by Act A980]

(c) to hold disciplinary proceedings in accordance with Part VII;

(d) to hold or cause to be held examinations of persons who desire to qualify themselves for registration under this Act;

[Am. by Act A980]

(e) to prescribe from time to time with the approval of the Minister the fees payable under this Act including the scales of fees to be charged by valuers, appraisers, estate agents or property managers for professional advi

10A PART III BOARD OF VALUERS, APPRAISERS, ESTATE AGENTS AND PROPERTY MANAGERS-10A. Committee.

(1) The Board may appoint such committees as the Board deems fit to assist it in performing its functions under this Act.

(2) A committee shall consist of two or more persons who are members of the Board or any other person as the Board deems fit.

(3) The procedure and functions of any committee appointed under subsection (1) shall be determined by the Board.

(4) The Board may, in writing, delegate to the committee any of its functions other than those which the Minister may by rules expressly require to be performed by the Board.

[Ins. by Act A1404 of the year 2011]

11 PART III BOARD OF VALUERS, APPRAISERS, ESTATE AGENTS AND PROPERTY MANAGERS-11. Examiners and other staff.

(1) The Board may appoint examiners and such other officers and employees as it considers necessary for the discharge of its functions.

(2) The examiners and other officers and employees shall hold office for such period, receive such salaries and allowances, and be subject to such other terms and conditions of service as may be determined by the Board.

12 PART III BOARD OF VALUERS, APPRAISERS, ESTATE AGENTS AND PROPERTY MANAGERS-12. Fund of the Board.

(1) All fees, fines and costs payable under this Act and all other moneys due to the Board under the provisions of this Act and such other sums as may be paid to the Board shall be credited to the Fund of the Board of Valuers, Appraisers, Estate Agents and Property Managers.

[(1) Am. Act A1550:s.8]

(2) The Fund may be applied for:

(a) the payment of the salaries, remuneration and allowances of the staff employed by the Board;

(b) the payment for professional and other services required by and rendered to the Board;

(c) the payment for office equipment, stationery, furniture and other things required by the Board;

(d) the payment to members of the Board or Appeal Board of fees and reasonable travelling and subsistence allowances for attendance at meetings of the Board or Appeal Board as may from time to time be approved by the Minister

13 PART III BOARD OF VALUERS, APPRAISERS, ESTATE AGENTS AND PROPERTY MANAGERS-13. Auditing of accounts.

The accounts of the Board shall be audited not less than once in a year by an auditor appointed by the Board.

14 PART IV REGISTERS-14. Registers.

(1) The Board shall keep and maintain:

[Subs. by Act A980]

(a) a Register of Valuers, Appraisers, Estate Agents and Property Managers which shall be in four Parts:

[(a) Subs. Act A1550:s.9]

(i) Part I which shall contain the names, business addresses, qualifications and other particulars of registered valuers;

(ii) Part II which shall contain the names, business addresses, qualifications and other particulars of registered appraisers;

[(ii) Am. Act A1550:s.9]

(iii) Part III which shall contain the names, business addresses, qualifications and other particulars of registered estate agents; and

[(iii) Am. Act A1550:s.9]

(iv) Part IV which shall contain the names, business addresses, qualifications and other particulars of registered property managers;

15 PART IV REGISTERS-15. Registrar.

(1) The Board, with the approval of the Minister, shall appoint a Registrar of the Board of Valuers, Appraisers, Estate Agents and Property Managers on such terms and conditions of service as it deems fit.

[(1) Am. Act A1550:s.10]

(2) The Registrar shall be under the general direction of the Board and shall sign all authorities to practise and record all entries required to be entered in the Register.

15A PART IV REGISTERS-15A. Application for authority to practise.

A registered valuer, appraiser, estate agent or property manager shall apply to the Board for authority to practise where he intends to practise as a registered valuer or appraiser under section 19, as a registered estate agent under section 22B, or as a registered property manager under section 22I.

[15A. Subs. Act A1550:s.11]

16 PART IV REGISTERS-16. Authority to practise.

(1) The Registrar shall, upon receipt of a fee prescribed by the Board with the approval of the Minister, issue to every applicant, whose application has been approved, an authority to practise in the form prescribed by the Board and subject to such conditions or restrictions as it may deem fit to impose;

[(1) Am. by Act A1404 of the year 2011]

(1A) For the purposes of subsection (1), the authority to practise as an individual registered valuer, appraiser, estate agent or property manager shall be subject to the condition that the practice is in accordance with section 23.

[(1A) Am. Act A1550:s.12]

(2) The authority to practise shall, subject to the provisions of this Act, expire on the 31st of December of the year in which it is issued and shall thereafter be renewable annually upon payment of the prescribed fee and upon the applicant satisfying and complying with such condi

17 PART V VALUERS AND APPRAISERS-17. Registration of valuers and appraisers.

(1) Subject to the provisions of this Act every person shall be entitled to have his name entered under Part I or II, as the case may be, of the Register upon making application to the Board and proving to its satisfaction that:

[Am. by Act A980]

(a) he has attained the age of 21 years and is of sound mind, good character and has not been convicted of any offence involving fraud or dishonesty or moral turpitude during the five years immediately preceding the date of his application;

(aa) he is not an undischarged bankrupt;

[Ins. by Act A980]

(ab) he has not made a statement or affirmed or attested a document that is false or misleading in a material particular;

(ac) he has not dishonestly concealed material facts;

(ad) he has not furnished false information;

[(ab), (ac)

17A PART V VALUERS AND APPRAISERS-17A. Registration of probationary valuers.

(1) Subject to the provisions of this Act, every person shall be entitled to have his name entered as a probationary valuer under the Register of Probationers upon making an application to the Board and proving to its satisfaction that:

[(1) Am. Act A1550:s.14]

(a) he has attained the age of 21 years and is of sound mind, good character and has not been convicted of any offence involving fraud or dishonesty or moral turpitude during the five years immediately preceding the date of his application;

(b) he is not an undischarged bankrupt;

(c) he satisfies the requirements of section 18;

(d) he has made a declaration in the form and manner prescribed by the Board;

(e) he has paid the fees prescribed by the Board; and

(f) he has submitted all documents as may be required by the Board.

(2) Th

18 PART V VALUERS AND APPRAISERS-18. Qualifications for registration of valuers and probationary valuers.

(1) Subject to the provisions of this Act, no person shall be entitled to have his name entered under Part I of the Register unless he has been registered as a probationary valuer under this Act.

(2) Any person who has passed the examinations prescribed by the Board or who has obtained qualifications which the Board recognises as equivalent to such examinations may apply to the Board to be registered as a probationary valuer.

(3) A probationary valuer shall be required to obtain the practical experience and to pass the Test of Professional Competence prescribed by the Board or any equivalent test or examination recognised by the Board.

(4) Where a probationary valuer has complied with the requirements of subsection (3), he may apply to the Board to have his name entered in the Register.

(5) Notwithstanding subsections (1), (2) and (3), a person who is a graduate member of the Property Consultancy and Valuation Surveying

19 PART V VALUERS AND APPRAISERS-19. Valuation practice.

Subject to the provisions of this Act a registered valuer or appraiser who has been issued with an authority to practise by the Board shall be entitled to practise his profession and shall be authorised to undertake:

(a) valuation of all lands and buildings and all interest therein including trees, crops, furniture, fixtures, trade stocks, plant, machinery, equipment and other effects; and

[(a) Am. Act A1550:s.16]

(b) valuation of lands and buildings and all interests therein required for feasibility studies, project management, court proceedings, arbitration or other purposes.

[(b) Am. Act A1550:s.16]

(c) (Deleted by Act A1550:s.16)

20 PART V VALUERS AND APPRAISERS-20. Restriction on registered appraisers.

(1) A registered appraiser is authorised to undertake work subject to a total capital value and upon terms and conditions fixed by the Board from time to time with the approval of the Minister.

(2) The total capital value is deemed to be the total amount undertaken under one specific instruction.

(3) The Board may restrict the practice of the registered appraiser to a particular State or States.

21 PART V VALUERS AND APPRAISERS-21. Restrictions on valuation practice.

(1) No person shall unless he is a registered valuer or appraiser and has been issued with an authority to practise under section 16:

[Am. by Act A980]

(a) practise or carry on business or take up employment under any name, style or title containing the words "Valuer", "Appraiser", "Land Economist", "Property Consultant", or the equivalent thereto in any language or bearing any other word whatsoever in any language which may reasonably be construed to imply that he is a registered valuer or appraiser or that he is engaged in the practice or business;

[(a) Am. Act A1550:s.17]

(aa) (Deleted by Act A1550:s.17)

(ab) carry on business or take up employment as a valuer or an appraiser;

[ Ins. by Act A980]

(b) display any signboard, or use, distribute or circulate any card, letter, pamphle

22 PART V VALUERS AND APPRAISERS-22. Special authority.

(1) Subject to subsection (2) and such policy as the Board may from time to time adopt, the President may from time to time with the approval of the Board, upon payment of the fees prescribed by the Board and on such conditions or with such restrictions as he thinks fit to impose, in writing authorise any person who is not a registered valuer to do any act or thing that the person would, but for the authorisation, be prohibited or not be entitled to do and may at any time, without assigning any reason therefor, withdraw the authorisation by notice served on the person.

(2) No person shall be authorised under this section to do any such act or thing for more than a total period of one hundred and eighty days in any one calendar year.

(3) A person who does any such act or thing under and in accordance with an authorisation under subsection (1) shall, notwithstanding any provisions of this Act to the contrary, be deemed to be permitted to

22A PART VA ESTATE AGENTS-22A. Registration of estate agents.

(1) Subject to the provisions of this Act every person shall be entitled to have his name entered under Part III of the Register upon making application to the Board and proving to its satisfaction that:

[ Am. Act A980]

(a) he has attained the age of 21 years and is of sound mind, good character and has not been convicted of any offence involving fraud or dishonesty or moral turpitude during the five years immediately preceding the date of his application;

(aa) he has not made a statement or affirmed or attested a document that is false or misleading in a material particular;

(ab) he has not dishonestly concealed material facts;

(ac) he has not furnished false information;

[(aa), (ab), (ac) Ins. by Act A1404 of the year 2011]

(b) he is not an undischarged bankrupt;

[Subs

22B PART VA ESTATE AGENTS-22B. Estate agency practice.

(1) Subject to the provisions of this Act, a registered estate agent who has been issued with an authority to practise by the Board shall be entitled to practise his profession and shall be authorised to undertake estate agency practice.

[Am. by Act A980]

(1A) A person undertakes estate agency practice if he acts as an agent, or holds himself out to the public or to any individual or firm as ready to act as an agent, for a commission, fee, reward or other consideration:

(a) in respect of any sale or other disposal of land and buildings and of any interest therein;

(b) in respect of any purchase or other acquisition of land and buildings and of any interest therein;

(c) in respect of any leasing or letting of land and buildings and of any interest therein;

(d) in making known of the availability of land, building, or any interest there

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Legal Commentary on Section 22B of the Valuers, Appraisers, Estate Agents and Property Managers Act 1981

Introduction

Section 22B of the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (VAEA) pertains to restrictions imposed on registered estate agents concerning property management activities. It aims to regulate the scope of practice for estate agents and ensure compliance with statutory provisions.

What does Section 22B Say

Section 22B explicitly states that no registered estate agent shall carry on property management unless certain conditions are met, particularly emphasizing that estate agents are prohibited from engaging in property management activities under specific circumstances, notably in subsection (1A).

Essential Ingredients

• Prohibition: The core element is the prohibition on registered estate agents from engaging in property management.
• Registration Requirement: The section presupposes that the estate agent is registered under the Act.
• Specific Subsection (1A): This subsection clarifies the restriction, indicating that estate agents cannot carry out property management unless exceptions apply.
• Scope of Activities: The activities covered include managing, maintaining, and administering properties on behalf of clients.
• Legal Consequences: Breach of this section may lead to disciplinary actions or penalties as prescribed elsewhere in the Act.

Scope of Section

The scope is confined to registered estate agents and their involvement in property management activities. It delineates the boundaries of permissible practice, ensuring that estate agents do not overstep their authorized functions. The section also interacts with other provisions regulating valuation, appraisal, and property management.

Punishment for Section

While Section 22B itself primarily restricts practice, violations can lead to penalties such as fines, suspension, or revocation of licenses, as indicated in related sections and sources. For instance, breaches may attract fines not exceeding ten thousand ringgit or imprisonment for up to three months, or both [Source: "Valuers, Appraisers, Estate Agents and Property Managers Act 1981"].

Legal Comments

• "Prohibition" - Section 22B restricts registered estate agents from engaging in property management activities unless specific conditions are met, ensuring professional boundaries are maintained - [Source: "Valuers, Appraisers, Estate Agents and Property Managers Act 1981"].
• "Scope Limitation" - The section limits the scope of estate agents' practice to prevent unauthorized property management, aligning with the Act's regulatory purpose - [Source: "Scope of Malaysian Valuers, Appraisers and Estate Agents Act"].
• "Registration Requirement" - Only registered estate agents are subject to these restrictions, emphasizing the importance of proper registration and compliance - [Source: "Valuers, Appraisers, Estate Agents and Property Managers Act 1981"].
• "Subsection 1A" - The specific mention of subsection (1A) highlights the explicit prohibition on estate agents carrying out property management, reinforcing statutory boundaries - [Source: "New VAEP Act for Property Managers"].
• "Activities Covered" - The activities include managing, maintaining, and administering properties, which are explicitly restricted under this section - [Source: "Valuers, Appraisers, Estate Agents and Property Managers Act 1981"].
• "Legal Consequences" - Breaching Section 22B can result in disciplinary measures, including fines or suspension, as per the Act's enforcement provisions - [Source: "VALIERS APPRAISERS ESTATE AGENTS AND PROPERTY ... Section 23"].
• "Regulatory Purpose" - The section aims to prevent unqualified practice and protect the integrity of the property management profession - [Source: "Valuers, Appraisers, Estate Agents and Property Managers Act 1981"].
• "Interaction with Other Sections" - Section 22B interacts with other provisions regulating registration and practice, ensuring a cohesive regulatory framework - [Source: "Scope of Malaysian Valuers, Appraisers and Estate Agents Act"].
• "Disciplinary Actions" - Violations may lead to penalties such as fines up to RM10,000 or imprisonment up to three months, reinforcing compliance - [Source: "Valuers, Appraisers, Estate Agents and Property Managers Act 1981"].
• "Policy Rationale" - The restriction aims to prevent conflicts of interest and ensure that property management is conducted by qualified professionals - [Source: "Why Is BOVAEA/BOVAEAP Important to Property Investors"].
• "Professional Ethics" - The section underscores the importance of adhering to professional standards and avoiding unauthorized practice - [Source: "BOVAEA guidelines: What every Malaysian real estate agent should"].
• "Enforcement Mechanism" - The Act provides mechanisms for enforcement, including investigations and disciplinary proceedings for breaches - [Source: "Valuers, Appraisers, Estate Agents and Property Managers Act 1981"].
• "Implication for Estate Agents" - Estate agents must be cautious not to undertake property management unless explicitly permitted, to avoid penalties - [Source: "New VAEP Act for Property Managers"].
• "Legal Certainty" - The clear prohibition enhances legal certainty and delineates professional boundaries within the real estate sector - [Source: "Understanding BOVAEA / LPPEH"].
• "Scope of Practice" - The section clarifies the scope of estate agents' practice, aligning with the broader regulatory framework - [Source: "Valuers, Appraisers, Estate Agents and Property Managers Act 1981"].
• "Impact on Practice" - The restriction influences how estate agents structure their services, possibly requiring separate licensing for property management - [Source: "New VAEP Act for Property Managers"].
• "Legal Compliance" - Compliance with Section 22B is essential for legal practice and avoiding sanctions - [Source: "Valuers, Appraisers, Estate Agents and Property Managers Act 1981"].

This concise legal commentary highlights the key aspects of Section 22B, emphasizing its role in regulating estate agents' involvement in property management activities within the framework of the Valuers, Appraisers, Estate Agents and Property Managers Act 1981.

22C PART VA ESTATE AGENTS-22C. Restrictions on estate agency practice.

(1) No person shall unless he is a registered estate agent and has been issued with an authority to practise under section 16:

(a) practise or carry on business or take up employment under any name, style or title containing the words "Estate Agent", "House Agent", "Property Agent"," Land Agent", "House Broker", "Real Estate Agency Consultant", or the equivalent thereto, in any language or bearing any other word whatsoever in any language which may reasonably be construed to imply that he is a registered estate agent or that he is engaged in estate agency practice or business;

[(a) Am. Act A1550:s.20]

(aa) carry on business or take up employment as an estate agent;

(b) display any signboard or poster or use, distribute or circulate any card, letter, pamphlet, leaflet, notice or any form of advertisement, implying either directly or indirectly that he is a reg

22D PART VA ESTATE AGENTS-22D. Qualifications for registration of estate agents and probationary estate agents.

(1) Subject to the provisions of this Act, no person shall be entitled to have his name entered under Part III of the Register unless he has been registered as a probationary estate agent under this Act.

(2) Any person who has passed the examinations prescribed by the Board or who has obtained qualifications which the Board recognises as equivalent to such examinations may apply to the Board to be registered as a probationary estate agent.

(3) A probationary estate agent shall be required to obtain the practical experience and to pass the Test of Professional Competence prescribed by the Board or any equivalent test or examination recognised by the Board.

(4) Where a probationary estate agent has complied with the requirements of subsection (3), he may apply to the Board to have his name entered in the Register.

(5) (Deleted by Act A1550:s.21)

22E PART VA ESTATE AGENTS-22E. Registration of probationary estate agents.

(1) Subject to the provisions of this Act, every person shall be entitled to have his name entered as a probationary estate agent in the Register of Probationers upon making application to the Board and proving to its satisfaction that:

[Am. Act A1550:s.22]

(a) he has attained the age of 21 years and is of sound mind, good character and has not been convicted of any offence involving fraud or dishonesty or moral turpitude during the five years immediately preceding the date of his application;

(b) he is not an undischarged bankrupt;

(c) he satisfies the requirements of section 22D;

(d) he has made a declaration in the form and manner prescribed by the Board;

(e) he has paid the fees prescribed by the Board; and

(f) he has submitted such documents as may be required by the Board.

(2) The

22F PART VB PROPERTY MANAGERS-22F. Registration of property managers.

(1) Subject to the provisions of this Act, every person shall be entitled to have his name entered under Part IV of the Register upon making an application to the Board and proving to its satisfaction that:

(a) he has attained the age of 21 years and is of sound mind, good character and has not been convicted of any offence involving fraud, dishonesty or moral turpitude during the five years immediately preceding the date of his application;

(b) he is not an undischarged bankrupt;

(c) he has not made a statement, or affirmed or attested a document that is false or misleading in a material particular;

(d) he has not dishonestly concealed material facts;

(e) he has not furnished false information;

(f) he satisfies the requirements of section 22H;

(g) he has made a declaration in the form and manner prescribed by the Board;

22G PART VB PROPERTY MANAGERS-22G. Registration of probationary property managers.

(1) Subject to the provisions of this Act, every person shall be entitled to have his name entered as a probationary property manager in the Register of Probationers upon making an application to the Board and proving to its satisfaction that:

(a) he has attained the age of 21 years and is of sound mind, good character and has not been convicted of any offence involving fraud, dishonesty or moral turpitude during the five years immediately preceding the date of his application;

(b) he is not an undischarged bankrupt;

(c) he satisfies the requirements of section 22H;

(d) he has made a declaration in the form and manner prescribed by the Board;

(e) he has paid the fees prescribed by the Board; and

(f) he has submitted such documents as may be required by the Board.

(2) The Board may require the applicant to submit any a

22H PART VB PROPERTY MANAGERS-22H. Qualification for registration of property managers and probationary property managers.

(1) Subject to the provisions of this Act, no person shall be entitled to have his name entered under Part IV of the Register unless he has been registered as a probationary property manager under this Act.

(2) Any person who has passed the examinations prescribed by the Board or who has obtained qualifications which the Board recognizes as equivalent to such examination may apply to the Board to be registered as a probationary property manager.

(3) A probationary property manager shall be required to obtain the practical experience and to pass the Test of Professional Competence prescribed by the Board or any equivalent test or examination recognized by the Board.

(4) Where a probationary property manager has complied with the requirements of subsection (3), he may apply to the Board to have his name entered in the Register.

[22H. Ins. Act A1550:s.23]

22I PART VB PROPERTY MANAGERS-22I. Property management practice.

(1) Subject to the provisions of this Act, a registered property manager who has been issued with an authority to practise by the Board shall be entitled to practise his profession and shall be authorized to undertake property management practice.

(2) The property management practice referred to in subsection (1) includes the following:

(a) enforcing the terms of leases and other agreements pertaining to the property;

(b) preparing budgets and maintaining the financial records for the property;

(c) monitoring outgoings for the property and making payments out of the income from the property;

(d) advising on sale, purchase and letting decisions;

(e) advising on insurance matters;

(f) advising on the opportunities for the realization of development or investment potential of the property;

(g) advising on the necessit

22J PART VB PROPERTY MANAGERS-22J. Restriction on property management practice.

(1) No person shall, unless he is a registered property manager and has been issued with an authority to practise under section 16:

(a) practise or carry on business or take up employment under any name, style or title containing the words "Property Manager", "Managing Agent", or the equivalent thereto in any language or bearing any other word whatsoever in any language which may reasonably be construed to imply that he is a registered property manager or he is engaged in property management practice or business;

(b) act as a property manager;

(c) carry on business or take up appointment or engagement as a property manager;

(d) display any signboard or poster, or use, distribute or circulate any card, letter, pamphlet, leaflet, notice or any form of advertisement, implying either directly or indirectly that he is a registered property manager or he is engaged in property m

23 PART VI FIRMS-23. Practice by firms.

(1) No registered valuer, appraiser, estate agent or property manager shall practise valuation, appraisal, estate agency or property management or have the right to recover in any court any fee, commission, charge or remuneration for any professional advice or services rendered by him pursuant to his practice unless he practises as a sole proprietor of a sole proprietorship, a partner of a partnership, a shareholder or director of a body corporate registered with the Board, or as an employee of such sole proprietorship, partnership or body corporate.

[(1) Am. Act A1550:s.24]

(1A) A sole proprietorship, partnership or body corporate may apply to the Board for registration to practise valuation, appraisal, estate agency or property management in the form and manner, and accompanied by the fee, as prescribed by the Board.

[(1A) Ins. Act A1550:s.24]

(1B) A sole proprietorship pra

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Legal Commentary on Section 23 of the Valuers, Appraisers, Estate Agents and Property Managers Act 1981

Introduction

Section 23 of the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (VAEA) addresses the penalties for individuals who engage in the practice of valuation, appraisal, estate agency, or property management without the requisite registration or license. This section is crucial for maintaining the integrity and professionalism within the real estate sector in Malaysia.

What Does Section 23 Say

Section 23 stipulates that any person who conducts activities related to valuation, appraisal, estate agency, or property management without being duly registered or licensed is committing an offense. The section outlines the penalties associated with such unlawful practices.

Essential Ingredients

• Unlawful Practice: Engaging in valuation, appraisal, estate agency, or property management without a license.
• Registration Requirement: Individuals must be registered with the relevant authority to legally perform these activities.
• Penalties: The section specifies fines and potential daily penalties for continued offenses.

Scope of Section

The scope of Section 23 encompasses all individuals involved in the real estate sector, including valuers, appraisers, estate agents, and property managers. It aims to protect the public from unqualified practitioners and ensure that only registered professionals provide these services.

Punishment for Section

Violators of Section 23 face significant penalties, including fines and additional daily penalties for ongoing offenses. This serves as a deterrent against unlicensed practices in the real estate industry.

Legal Comments

• Keyword - Summary - [Source Reference]
• Unlawful Practice - Engaging in real estate activities without a license is prohibited under Section 23. -
• Registration Requirement - Individuals must be registered to practice as valuers, appraisers, estate agents, or property managers. -
• Penalties - Offenders may incur fines and additional penalties for each day the offense continues. -
• Public Protection - The Act aims to protect the public from unqualified practitioners in the real estate sector. -
• Disciplinary Actions - The Board has the authority to impose disciplinary actions, including fines and license suspensions, for breaches of the Act. -
• Director General - The Act provides for the appointment of a Director General to oversee valuation and property services. -
• Scope Expansion - Recent amendments have expanded the scope of the Act to include property managers explicitly. -
• Professional Standards - The Act establishes standards of ethics and professionalism for registered practitioners. -
• Compliance Monitoring - The Board is responsible for ensuring compliance with the provisions of the Act. -
• Public Interest - The Act was enacted to safeguard public interests in real estate transactions. -
• Fines Structure - The fines for unlawful practice can escalate with continued violations, emphasizing the seriousness of compliance. -
• Legal Framework - Section 23 is part of a broader legal framework aimed at regulating the real estate industry in Malaysia. -
• Ethical Conduct - Registered professionals are expected to adhere to a code of conduct to maintain ethical standards in their practice. -
• Regulatory Authority - The Board serves as the regulatory authority for the registration and discipline of valuers, appraisers, and estate agents. -
• Public Awareness - The Act encourages public awareness regarding the importance of engaging licensed professionals in real estate matters. -
• Legal Recourse - Victims of unlicensed practices may seek legal recourse under the provisions of the Act. -
• Professional Development - The Act supports the professional development of registered practitioners through training and ethical guidelines. -
• Enforcement Mechanisms - The Act includes mechanisms for the enforcement of its provisions to ensure compliance. -
• Impact on Industry - The enforcement of Section 23 is expected to enhance the credibility and reliability of the real estate industry in Malaysia. -

24 PART VII DISCIPLINARY AND OTHER PROCEEDINGS-24. Cancellation, suspension and admonishment.

(1) Subject to the provisions of this Part, if a valuer, appraiser, estate agent or property manager, or a probationary valuer, probationary estate agent or probationary property manager whose name has been placed in the Register or the Register of Probationers, as the case may be:

[(1) Subs. Act A1550:s.25]

(a) has been convicted of any offence involving fraud or dishonesty or moral turpitude;

(b) has been found to have obtained his registration or authority to practice under this Act by fraud or misrepresentation;

(c) has his qualification under section 18, 22D or 22H withdrawn or cancelled by the authority through which it was acquired or by which it was awarded;

[(c) Am. Act A1550:s.25]

(d) has contravened or failed to comply with any of the provisions of this Act or of any of the rules made thereunder;

25 PART VII DISCIPLINARY AND OTHER PROCEEDINGS-25. Removal from Register.

(1) There shall be removed from the Register or the Register of Probationers, as the case may be, the name and particulars of any registered valuer, appraiser, estate agent or property manager, or probationary valuer, probationary estate agent or probationary property manager-xxxxxxxxxxxxxxxxxx

[(1) Subs. Act A1550:s.26]

(a) who has applied in writing for such removal;

(b) who has died;

(c) who has been certified by a government medical officer as being of unsound mind or by reason of some other infirmity of body, mind or any other reason, is incapable of effectively performing the functions of a registered valuer, appraiser, estate agent or property manager;

[(c) Am. Act A1550:s.26]

(ca) who has been adjudged a bankrupt;

[(ca) Ins. by Act A1404 of the year 2011]

(d)

26 PART VII DISCIPLINARY AND OTHER PROCEEDINGS-26. Reinstatement.

(1) Any person whose name has been removed from the Register or the Register of Probationers, as the case may be, pursuant to an order under paragraph 24(1)(i) shall, if his appeal has been allowed, forthwith be reinstated.

[(1) Am. Act A1550:s. 27]

(2) Any person whose practice has been suspended under paragraph 24(1)(ii) and who has been admonished under paragraph 24(1)(iii) shall, if his appeal has been allowed, forthwith have the particulars of the suspension or the admonishment removed from the Register or the Register of Probationers, as the case may be.

[(2) Am. Act A1550:s. 27]

(3) Any person whose name has been removed from the Register or the Register of Probationers, as the case may be, under paragraph 24(1)(c) shall be reinstated if he has notified the Board and the Board is satisfied with the change of circumstances removing his disability under that paragraph.

27 PART VII DISCIPLINARY AND OTHER PROCEEDINGS-27. Appeal.

(1) Any person:

(a) who has been refused registration by the Board;

(b) who has been registered but is dissatisfied with any terms, conditions or restrictions imposed by the Board;

[Am. by Act A980]

(c) who having been registered is dissatisfied with any order made by the Board under section 24; or

(d) whose reinstatement under section 26 has been refused by the Board,

[Ins. by Act A980]

may within thirty days of being notified of such refusal, restriction or order, appeal to the Appeal Board which may thereupon make such orders as it may deem just or proper including any directions as to the cost of the appeal.

(2) The Board shall give effect to any order made by the Appeal Board.

28 PART VII DISCIPLINARY AND OTHER PROCEEDINGS-28. Appeal Board.

(1) For the purpose of this Act there shall be established an Appeal Board consisting of a person qualified for appointment as a Judge of a High Court as Chairman who shall be appointed by the Yang di-Pertuan Agong after consultation with the Chief Justice of the Federal Court, and two other persons nominated by the Chairman from a panel of members who shall be appointed by the Yang di-Pertuan Agong.

[Am. by Act A980]

(2) A member of the Appeal Board shall unless he sooner resigns his office or has his appointment revoked, hold office for such term as may be specified in the instrument appointing him and shall be eligible for re-appointment.

(3) The Board shall provide the Appeal Board with such secretarial services as are necessary for the Appeal Board to fulfil its functions.

29 PART VII DISCIPLINARY AND OTHER PROCEEDINGS-29. Procedure for appeal.

(1) A notice of appeal referred to in section 27 shall be made in the prescribed form.

[Am. by Act A1404 of the year 2011]

(2) On receipt of the notice of appeal the President of the Board or in his absence, the member delegated by the President so to do, shall cause to be prepared within three months of the receipt of such notice a record of the proceedings of the Board and a statement setting out the grounds on which the Board arrived at its decision.

(3) Upon receiving the record of proceedings and the grounds of decision of the Board the Chairman of the Appeal Board shall convene a meeting of the Appeal Board to hear the appeal.

(4) The Appeal Board after hearing the appeal may, on a majority decision, confirm or vary the decision of the Board.

(5) The Appeal Board shall at its discretion determine its own procedure and the costs of and incidental to the appeal.

(6) The decision

30 PART VIII GENERAL-30. Offences.

(1) Any person who:

(a) procures or attempts to procure registration or an authority to practise under this Act by knowingly making or producing or causing to be made or produced any false or fraudulent declaration, certificate, application or representation whether in writing or otherwise;

(b) wilfully makes or causes to be made any falsification in the Register or Register of Probationers or Register of Firms;

[(b) Am. Act A1550:s.28]

(c) forges, alters or counterfeits any certificate, testimonial, order or authority to practise under this Act;

(d) utters or uses any forged, altered or counterfeit authority to practise under this Act knowing the same to be forged, altered or counterfeited;

(e) impersonates a registered valuer, registered appraiser, registered estate agent or registered property manager;

30A PART VIII GENERAL-30A. Powers to investigate.

(1) A police officer not below the rank of an Inspector shall have the powers to investigate the commission of any offence under this Act or any rules made under this Act.

(2) The provisions of the Criminial Procedure Code [Act 593] shall apply to a police officer not below the rank of an Inspector in relation to any investigation in respect of any offence under this Act or any rules made under this Act, except that the power to arrest without a warrant under the Criminial Procedure Code in any seizable offence may not be exercised by the police officer.

[30A. Am. Act A1550:s.30]

30B PART VIII GENERAL-30B. Search by warrant.

[Renumbering by Act A1550:s.29]

(1) If it appears to a Magistrate, upon written information on oath and after such enquiry as he considers necessary, that there is reasonable cause to believe that an offence under this Act or any rules made under this Act is being or has been committed on any premises, the Magistrate may issue a warrant authorizing any police officer not below the rank of Inspector, or any person named in the warrant:

(a) to enter the premises at any reasonable time, by day or by night, with or without assistance, and if need be by force;

(b) to search for and seize at the premises any signboard, card, letter, pamphlet, leaflet, notice or other device representing or implying that the person is a registered valuer, appraiser, estate agent or property manager, and any other document, article or item that is reasonably believed to furnish evidence of the commis

30C PART VIII GENERAL-30C. Search and seizure without warrant.

[Renumbering by Act A1550:s.31]

If a police officer not below the rank of Inspector in any of the circumstances referred to in section 30B has reasonable cause to believe that by reason of delay in obtaining a search warrant under that section the investigation would be adversely affected or evidence of the commission of an offence is likely to be tampered with, removed, damaged or destroyed, such officer may enter such premises and exercise in, upon and in respect of the premises all the powers referred to in section 30B in as full and ample a manner as if he were authorized to do so by a warrant issued under that section.

[Am. Act A1550:s.31]

30D PART VIII GENERAL-30D. List of things seized.

[Renumbering by Act A1550:s.32]

(1) Except as provided in subsection (2), where any signboard, card, letter, pamphlet, leaflet, notice, device, document, article or item is seized under section 30B or 30C, the seizing officer or person shall prepare a list of the things seized and immediately deliver a copy of the list signed by him to the occupier of the premises which have been searched, or to his agent or servant, at those premises.

[Am. Act A1550:s.32]

(2) Where the premises are unoccupied, the seizing officer or person shall whenever possible post a list of the things seized conspicuously on the premises.

31 PART VIII GENERAL-31. Penalty for other offences.

(1) Any person who commits any offence under this Act for which no other penalty is expressly provided is liable on conviction to a fine not exceeding two hundred thousand ringgit.

[(1) Am. by Act A1404 of the year 2011]

(

2) If a firm fails to comply with any of the provisions of this Act the sole proprietor, every partner and every director, or other similar officer thereof commits the same offence and is liable to the same penalty as the firm unless he proves that the offence was committed without his knowledge, consent or connivance or was not attributable to any neglect on his part.

31A PART VIII GENERAL-31A. Protection against suit and legal proceedings.

No action, suit, prosecution or other proceedings shall lie or be brought, instituted or maintained in any court against the Board, any Committee appointed by the Board, any members of the Board, any members of the Committee appointed by the Board or any person or officer of the Board authorized or appointed to act for or on behalf of the Board in respect of any act, neglect or default done or committed by it or him in good faith, or any omission by it or him in good faith, in such capacity.

[31A. Subs. Act A1550:s.33]

32 PART VIII GENERAL-32. Board may make rules.

The Board may with the approval of the Minister make rules as may be necessary for the better carrying out or giving effect to the provisions of Part III to Part VIII.

33 PART VIII GENERAL-33. Saving as to right of Government.

Nothing in this Act contained shall apply to anything done or omitted to be done by or under the authority of the Government or of any State Government.

34 PART VIII GENERAL-34. Consequential amendments to the Registration of Surveyors Act 1967.

The Registration of Surveyors Act, 1967 shall be amended in the manner specified in the Second Schedule one year after the coming into force of this Act.

35 PART VIII GENERAL-35. Repeal.

The written laws specified in the Third Schedule shall be repealed to the extent specified therein one year after the coming into force of this Act.