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THE REAL ESTATE

PROFESSION

BIE1007 (2022/2023)
Abdul Ghani Sarip
1022

“ BUY LAND; THEY’RE NOT

MAKING IT ANYMORE.
”
Mark Twain

“ PRICE IS WHAT YOU PAY,

VALUE IS WHAT YOU GET.
”
Warren Buffet

REAL ESTATE / REAL PROPERTY IS

A PROFESSION AND AN INDUSTRY.

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CONTENT

Before we begin…
• Spectrum
• Course Proforma
• Course Information
• Continuous Assessment
• Entrance Survey
Introduction
• Real Estate Profession
• Real Estate Professionals

REGULATORY AND PROFESSIONAL

BODIES

Board of Valuers, Appraisers, Royal Institution of Royal Institution of Chartered

Estate Agents and Property Surveyors Malaysia Surveyors
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Managers Malaysia (RISM)

(BoVAEP)
Property Surveying Division
(PS Division)

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VALUATION STANDARDS AND 5

GUIDELINES

MUST HAVE!!

ESTATE AGENCY STANDARDS AND

PROPERTY MANAGEMENT STANDARDS

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INTRODUCTION

Real Estate Profession

• Definition and scope of property valuation,
real estate agency & property management
• Roles and functions of a valuer
• Purposes of valuation
• Other real estate career paths

REAL ESTATE PROFESSION IN MALAYSIA

PROPERTY PROPERTY Valuers, Appraisers,

REAL Estate
ESTATE
VALUATION MANAGEMENT AGENCY
Agents and Property
Managers Act 1981 (Act 242)
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Statutory Valuation Building Management Sales

Non-statutory Valuation Financial Management Estate Agents MarketingProperty
Appraisers* managers
Project Management Advice
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REAL ESTATE PROFESSION IN MALAYSIA

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The profession is governed

by an Act of law: Valuers and
Valuers, Appraisers,
Estate Agents and Appraisers*
Property Managers Act
1981. Estate Agents
Valuers, Appraisers, Estate
BoVAEP is the body tasked Agents and Property
with regulating the Property Managers
Managers Act 1981 (Act 242)

Valuers, Appraisers, Estate

Agents, and Property *Appraisers are registered under Part
Property
Estate Agents
Managers in Malaysia. Appraisers* V of the Act because of their long
managers
experience and earlier registration
under the various Appraisers Acts.
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VALUATION PRACTICE
Sec 19 of Act 242:
Subject to the provision of this Act a registered valuer or
appraiser who has been issued with an authority to
practice by the Board shall be entitled to practice his
profession and shall be authorized to undertake-

a) Valuation of all lands and buildings and all interests

therein including trees, crops, furniture, fixtures,
trade stocks, plant and machinery, equipment, and
other effects. 5

b) Valuation of lands and buildings and all interests

therein required for feasibility studies, project
management, court proceedings, arbitrations, or
other purposes.
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PROPERTY VALUATION
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Property valuation is a professional practice

similar to the architecture, engineering,
quantity surveying, medicine, accounting, or
legal professions.

Valuation is a combination of both art and

science.

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THE ‘ART’ THE ‘SCIENCE’

This involves the skill and experience
of a property valuer and how he/she
interprets and analyses all the market
information on the physical and other
related characteristics of the property, as
well as information he procured on
prices recently paid by purchasers of
properties in the vicinity of the subject
This involves the technical surveys,
measurements, and research work
that a property valuer must conduct to
obtain all the necessary information
he/she needs to have an understanding of
the physical and other related
characteristics of the subject property.
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property, that ultimately leads him to

form his/her “considered professional
opinion” on the market value of the
subject property.

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PURPOSE OF VALUATION
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BOVAEP
Roles and Functions
Its primary function is to regulate the Valuers, • To approve and reject applications
Appraisers, Estate Agents, and Property for registration.
Managers practicing in Malaysia. • To hold disciplinary proceedings
• To conduct examinations
To keep and maintain the Register of: • To prescribe the Scale of Fees
• Valuers, Appraisers, Estate Agents and • To regulate the professional
Property Managers, Conduct/Ethics
Valuers, of Valuers,
Appraisers, Estate
Agents and Property
• Probationary Valuers and Probationary Appraisers,
Managers Act 1981 Estate
(Act 242)Agents and
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Estate Agents, and Property Managers

• Firms of Valuers, Appraisers, Estate Agents • To award scholarships.
and Property Managers. Estate Agents Property
Appraisers* managers

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WHAT IS 15

REAL ESTATE VALUATION?

A service performed by a valuer…
… that develops an opinion of value…
… of a real estate and the interests therein…
… for a specific purpose…
… at a specified date (aka the date of valuation)…
… using relevant approaches to value (methods of
valuation)…
… based upon the real estate specific characteristics
… and other relevant factors of valuation.
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A VALUER’S ROLE
• A valuer’s job is to assess the market value of land,
buildings, or other assets such as plant, machinery,
equipment, etc.
• Valuers do not “create” or “determine” value; they analyse
and interpret market evidence and all underlying factors,
and accordingly assess the value of the property.
• Provides independent, well-reasoned and an objective
professional opinions of the value of the property for
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various purposes
• Valuers apply both ‘arts’ and ‘sciences’ to value real estate.

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• A person whose name has been entered under Part I of the Register.
• To whom the authority to practice has been issued by the Board under Section
16 of the Act.
• Only a registered valuer can call himself a "Valuer", "Land Economist",
"Property Consultant" or "Property Manager".
• He/she can carry out the practices of valuation, property
Valuers, Appraisers,management,
Estate or
property consultancy. Agents and Property
Managers Act 1981 (Act 242)
• He/she is educated and trained in all areas of real estate use and
development and is registered only after passing the Test of Professional
Competence set by the Board. Appraisers* Estate Agents Property
managers

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PATHWAY TO BECOME
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A REGISTERED VALUER

Bachelor of Probationary At least 2 years Pass the Test of Registered

Real Estate Valuer of working Professional Valuer
(UM) (PV) experience Competence (RV)
(TPC)
• Submit a recordte
Continuous full- Valuers
of experience in a Also Registered
Agents and Property
Accredited by Register with time attachment Estate Agent
Work diary and 42)
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BoVAEP BoVAEP under the (REA) and

Logbook
and RICS supervision of a Registered
• TPC Tasks 1 & 2
Registered Valuer • BoVAEP TPC Property Manager
Property
Interviews managers

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REAL ESTATE AGENT

• A person whose name has

been entered under Part III
of the Register, to whom an
authority to practice has
been issued by the Board
under Section 16 of the Act.

• Provides service in buying,

selling, and leasing
properties for clients so
that, optimum returns can
be achieved.

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ESTATE AGENCY PRACTICE 20

Sec 22B of Act 242 Estate Agency Practice:

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 therein for such sale or
disposal, purchase or acquisition, or leasing or letting referred to in paragraph (a), (b) or (c), as 10

the case may be; and

(e) 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 a property
of any land and buildings and of any interest therein.

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REGISTERED ESTATE AGENT 21

VS. REAL ESTATE NEGOTIATOR

REA REN
• Registered with BoVAEP. • Also registered with BoVAEP – REN Tag.
• Able to operate his/her own real They’re only allowed to work under
estate firm and provide real registered REAs.
estate service in selling, leasing, • A REN gains its accreditation through
or finding a property for clients. attending a two-day course known as the
• Able to employ up to 30 Real ‘Negotiators Certificate’
Valuers, Appraisers,.Estate
Agents and Property
Estate Negotiators (REN) to help • Because RENs undergo
Managers less
Act 1981 (Act 242)studying and

provide real estate services to less training compared to REAs, they also
clients. must be tied with a registered realProperty estate
firm in order toEstate
Appraisers* work Agents
in the industry.
managers

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PROPERTY MANAGER
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• Property management is a service provided by a property management company

to manage real estate on the owner’s behalf.
• They’re given the responsibility of maintaining and ensuring the property
remains in good condition.
• Property managers are normally hired by the property management company to
assist in overseeing any needs and answering any questions or concerns the
tenants may have.
• A property manager’s responsibilities involve the
management of rent, tenants, property maintenance 11

and repairs, owners, landlord-tenant laws, business

operations, property records and accounting, and taxes.

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REGISTERED PROPERTY MANAGER

• A person whose name Building
has been entered under Management
Part III of the Register
• To whom an authority to Tenancy/Leasing Financial
practice has been issued Management Management
by the Board under
Section 16 of the Act PROPERTY
MANAGERS
• Roles and functions of a Health, Safety and Valuers, Appraisers,
TASKS Estate
Facilities
Property Manager – Emergency Management Agents and Property Management
Managers Act 1981 (Act 242)
refer to “Malaysian
Property Management
Standards” Administrative
Insurance Estate Agents Property
Appraisers*
Management Managementmanagers

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OTHER CAREER PATH 24

Real estate involves a long and GOVERNMENT, GLCs, GOVERNMENT AGENCIES

complex process that starts with
initial investment choices and
includes valuations, planning, and
design work, followed by PROJECT AND DEVELOPMENT SERVICES
construction, management,
maintenance, and asset maximisation.
To address a wide range of issues, real BANKING AND FINANCE (CAPITAL MARKETS)
estate professionals use their
specialised knowledge of valuation, COMMERCIAL AND RETAIL MANAGEMENT
finance, economics, planning, law,
and construction.
(SHOPPING MALL / OFFICE BUILDING, ETC.)
The variety of roles and 12

responsibilities is huge, so wherever EDUCATION, TRAINING AND RESEARCH

your passion lies or however high
your ambition is, you’ll find your
perfect position in this field. ADVISORY AND CONSULTING

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VALUATION AND PROPERTY SERVICES DEPARTMENT

(JPPH)

LOCAL AUTHORITY (e.g. DBKL, MBPJ, MPK)

PRIVATE FIRMS (i.e. CBRE-WTW, Knight Frank, JLW,

Rahim&Co., Savills, etc.

GLCs (PETRONAS, TNB, TM, MAHB, MAYBANK, CIMB, PNB,

etc.)

PRIVATE COMPANIES (Shell, Sime Darby, Aeon, IOI Properties,

SP Setia, Guthrie, Maxis, etc.)

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CONCLUSION

Real estate professions in Malaysia are regulated by Act

242 via a professional body known as BoVAEP, which is
under the purview of the Ministry of Finance.

Real estate professionals are experts in their related

fields of work.
• They are prepared to provide professional services to
people who require them.
• They can trade their knowledgeable counsel and expert
advice. 13

• They are required to follow a code of conduct and

professional ethics.
• They are liable for any negligence on their part.

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THANK YOU
Abdul Ghani Sarip
garnae@um.edu.my

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