NEGOTIATOR`S

HANDBOOK
KEY PROPERTIES [E(3)0871]

PART - 1

Key Properties
61-B, Jalan Anggerik Vanilla T31/T, Seksyen 31,40460 Kota Kemuning Shah Alam, Malaysia,
www.agrealty2u.com , admin@agrealty2u.com , www.facebook.com/hartanah4u
+6012-305.1688 , +603.5887.9628
user
(Properties of Key Properties- PREPARED By Kamal AG)
Table of Contents
1.0 Introduction to Real Estate Business .......................................... 3
1.1 Definition: ................................................................................... 3
1.1.1 Real Estate ...................................................................... 3
1.1.2 THE REAL ESTATE PROFESSION ...................................... 3
1.1.3 ESTATE AGENCY PRACTICE? ........................................... 3
1.1.4 Who is a Registered Estate Agent? ................................ 3
1.1.5 WHO IS NEGOTIATOR?.................................................... 4

1.2 Why Us? ....................................................................................... 4

2.0 Who Govern the Real Estate Business? ...................................... 5

2.1 Principal -- Agent -- Negotiator Relationship ............................... 5

2.2 What Govern the Relationship? .................................................. 6

2.2.1 General Law of Agency ................................................... 6

2.2.2 Agency Agreement.......................................................... 6

2.2.3 Other terms included in the form ................................... 6

2.3 Duties of a Real Estate Negotiator To Client or Principal ............ 7

3.0 WHAT ARE THE TYPES OF AGENCY APPOINTMENT? .................. 7

3.1 TYPES OF AGENCY ........................................................................ 8

3.2 Advantage of EXCLUSIVE AGENCY ............................................. 10

4.0 Flow Chart .................................................................................. 11

4.1 Selling Flow Chart....................................................................... 11

4.2 Renting Flow Chart..................................................................... 12

5.0 Categories of Land Usage........................................................... 13

5.1 The main Sectors of Real Estate in Malaysia ............................. 14

5.2 Land Title & Ownership ............................................................. 15

5.2.1 Important Information In Land Title ............................. 15

5.3 Most relevant type of titles for negotiators .............................. 16

6.0 Professional Fees Allowed by The Board ................................... 17

6.1 Maximum fee on Sale & Purchase Transactions........................ 17

6.1.1 Minimum fee on Sale & Purchase Transactions ........... 17

6.1.2 Maximum Fee on Tenancy / Lease ............................... 18

6.1.3 Minimum Fee on Tenancy / Lease ................................ 18

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 6.2 Additional Claims ....................................................................... 18

6.3 Types of Payment in a Property Transaction ............................. 19

6.3.1 Sale & Purchase Transaction......................................... 19

6.3.2 Forfeiture ...................................................................... 19

6.3.3 Abortive Fee .................................................................. 19

6.4 When are fees payable? ........................................................... 19

6.4.1 Rental ............................................................................ 19

6.4.2 Sales .............................................................................. 20

7.0 Parties in REAL ESTATE Transactions ......................................... 20

Appendix ................................................................................................. 21

F1-Appointment to act as an agent (to secure purchaser

F2-Appointment to act as an agent (to secure tenant)

F3-Agreement to Purchase

F4-Agreement to Rent

F5-Viewing form

F6-Acknowledgement of received keys

T1-Title

L1-Valuers, Appraisers & Estate Agents Act 1981

L2-The Malaysian estate Agency standards

2
1.0 Introduction to Real Estate Business
1.1 Definition:
1.1.1 Real Estate - encompasses land along with improvements
to the land, such as buildings, fences, wells and other site
improvements that are fixed in location—immovable It
also refers to the land and fixtures together, to ownership
of land including anything of a permanent nature such as
structures, trees, minerals, and the interest, benefits, and
inherent rights thereof.

1.1.2 THE REAL ESTATE PROFESSION

The Real Estate Profession comes under the purview of
the Ministry of Finance and is regulated by The Board of
Valuers, Appraisers & Estate Agents, Malaysia and
governed by the Valuers, Appraisers & Estate Agents Act
1981, the Rules 1986 and The Standards

1.1.3 ESTATE AGENCY PRACTICE?

It means acting or holding oneself out to the Public as
ready to act, for a commision, fee, reward or other
consideration as an agent in respect of the sale or other
disposal of land and buildings and of any interest therein
or the purchase or other acquisition of land & buildings
and of any interest thereon or in respect of the leasing or
letting of land and buildings and of any interest therein.

1.1.4 Who is a Registered Estate Agent?

A registered Estate Agent is a person whose name has
been placed on the Register and has been given the
authority to carry out "Estate Agency Practice" by the
Board of Valuers, Appraisers and Estate Agents under the
Valuers, Appraisers and Estate Agents Act 1981.

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1.1.5 WHO IS NEGOTIATOR?
A negotiator is a real estate salesperson employed by a
real estate agent. All negotiators are required to work on a
full time basis with a real estate firm.

1.2 Why Us ?

We are registered with the Board of Values., Appraisers &

Estate Agents.(BOVEA)
We are governed by an Act of Parliament.
Estate Agents are recognized by the Government.
We are qualified, knowledgeable & experienced.
We are accountable to the clients for their actions.
We more understand about the respective laws relating to
property deals.
We are well informed about currents events of property
market.
We are accountable for monies collected - clients account.
Real Estate Agents save time & money - do it right the first
time around.
Real Estate Agents advise on property values and negotiate
prices.
Client life is made easier as we take care of all details.

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2.0 Who Govern the Real Estate Business ?

Valuers, Appraisers & Estate Agents Act 1981 (RULES 1986 )

Real Estate Practitioners come under the purview of the Board of
Valuers, Appraisers & Estate Agents which was created by
Parliament to regulate the profession.

The Board is vested with wide powers to issue licenses, suspend or

revoke such licenses given to practitioners.

Current proposed amendments to the Act provide additional

powers against "bogus" agents.

It is therefore to your benefit to abide by the rules and regulations

provided under the Act, in order to ensure a successful career in
Real Estate.to practitioners.

Current proposed amendments to the Act provide additional

powers against "bogus" agents.
2.1 Principal -- Agent -- Negotiator Relationship
It is therefore to your benefit to abide by the rules and regulations
provided under the Act, in order to ensure a successful career in
Real Estate.

Principal

Agent

Negotiator

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2.2 What Govern the Relationship?
2.2.1 General Law of Agency
The Principal - Agent Relationship is governed by The General Law
of Agency where it specifies that the relationship must have the
following:
1. The principal is to give the agent the authority to act on
his/her behalf in the market.
2. The duration of-time this relationship.
3. State clearly the specification of work involved.
2.2.2 Agency Agreement
The agency agreement is binding on the principal. It sets out on
the terms of which the principal and agent wilt do business
together. The terms to be included are:
1. Agency Fee.
2. Type of agency.
3. Expenses by client.
4. Termination.

In Key Properties both the General Law of Agency and Agency

Agreement are incorporated into The Appointment To Act As An
Agent (To secure a Purchaser/ Tenant)

2.2.3 Other terms included in the form:

1. Permission to put up the signboard.
2. Permission to place Advertisement.
3. Authorize the agent to deal with the Earnest Deposit.
4. Selling price.
5. Agency Fee.
6. Clients information & status.
2.3 Duties of a Real Estate Negotiator To Client or Principal

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• Render service with absolute fidelity and practice the
ideals of integrity, honor and courtesy in the spirit of
fairness and goodwill.
• Obey all lawful and reasonable instruction of the principal.
• Exercise reasonable care, prudence and skill in undertaking
his duties.
• Exercise good faith because of fiduciary relationship.
• Maintain loyalty to principal, encompassing all obligations
to the principal.
• Cannot act for both parties unless with both their consent.

3.0 WHAT ARE THE TYPES OF AGENCY APPOINTMENT?

A real estate agent can be appointed on the following basis:-

3.1 TYPES OF AGENCY

SOLE JOINT

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 EXCLUSIVE AGENCY
1) -ONLY the real estate agent can sell-

This refers to the instruction from the client to ONE real estate
agent to act on his behalf. The client may make introduction but
will leave the closing of the transaction to the real estate agent.
The client must pay the appointed real estate agent the agreed
fee whether or not the real estate agent was the effective or
direct cause of the transaction.

When exclusivity is given to a real estate agent, the agent assumes

all responsibilities to effectively market the property. The
exclusive agent deals directly with all prospects and other real
estate agents. Hence, the exclusive agent can control the price
and act professionally in the best interest of the client. The client
only has to deal with one real estate agent.

SOLE AGENCY
– BOTH the vendor and real estate agent can sell-

Similar to exclusive agent, ONE real estate agent is appointed to

act on vendor's behalf. The client may wish to reserve the right to
close the deal himself and is not obliged to pay the agent his fee if
he closes the deal himself. When the client plays an active role in
the deal or makes an introduction, an arrangement may be made
for a discount in fees to the real estate agent.

SOLE JOINT AGENCY

– The vendor and real estate agent is a TEAM -

A variation to Sole Agency, the vendor and real estate agent works
together as a team and the fee is divided on a pre-agreed formula.
The client has the flexibility in compensating the real estate agent
whilst maintaining the advantage of having one estate agent in
control.

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 JOINT AGENCY
– LIMITED number of real estate agents can sell -

There are more than one real estate agent appointed to work on
the listing and only the agent who closes the deal gets paid. The
number of real estate agent appointed is limited and each is
aware of the appointment of each other.

AD HOC AGENCY
– UNLIMITED number of real estate agents can sell -

The client can appoint as many real estate agents as he wants on

an ad hoc basis. Fees are only paid to the agent who successfully
concluded the transaction.

One may choose this type of agency so that not all eggs are put in
one basket. It is not always true that the more real estate agents
being appointed, the greater the exposure the property has. Like
the proverb 'too many cooks spoil the broth', adhoc agency can
lead to unprofessional practice by agents who will tend to
compete with each other to close the deal. This may not
necessarily be in the best interest of the client. For example,
properties with many agents' banners or stickers may appear
'unwanted' or 'problematic'. Prices may be pressed down simply
to close the deal. Also, real estate agents may not be fully
committed in working on the listing.

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3.2 Advantage of EXCLUSIVE AGENCY

•With too many agents handling an open listing, it tends to

bring the price down as the agents will try to attract any
Unchallenged buyers with the lowest price.

Price Control •With a smart agent, he would be controlling the price and
work hand in hand with other agents to bring the best
offer to the owner.

•Without notice, having the owners’ home marketed by a

One Point of couple of agents, the owner will have to macro manage
them and remember what he or she have told them. It will
Contact cause dilemma on who to award to if both agents brings
the owner the same offer.

Clear •With the exclusive contract, you won’t have to haggle

when a deal is closed on his commission. You would also
Relationship know my roles and duties as the agent to be responsible to
his principle, which is the owner
Established

•With an exclusive contract signed with the right firm, we

Efficient and would be literally working towards a clear goal; to reach
the owners’ target price stipulated in the exclusive
Dedication to contract. we feels more motivated as there couldn’t be
another firm or agent which could undercut us. we will
Marketing work hand in hand with other agents to reach the clients’
price goal as his interest is protected.

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4.0 Flow Chart

4.1 Selling Flow Chart

•Getting Written Appointment as An Agent to sell and to buy property

Getting •(see attachment 1)
Appointment
Appointment Form Key Collection Form

•# Checking Property Inspections owner at land office search

Property # Property inspection and taking picture for marketing
Inspections

•- Online Marketing ( property4u.com.my, mudah,iproperty.property guru,

investment forum propwall.ect )
Marketing -off line marketing ( fliers)

•-Bring Prospect Buyer for Viewing.

Prospect -Negotiating Price Viewing Form
buyer

Collecting •- we will collect 3% and bank in into our company client account
Earnest
Deposit
Agreement to purchase Form
-3 %
•-prepared by appointed lawyer
Signning
-Buyer To paty Remaining 7%
•- We Collect Our Professional FEE (3%)
SnP
14 days

Buyer •- Remaining Selling Price will be financed by bank and will be delivered to
To obtain Owner within 3 month
Bank
Loan

•Happy Seller + Statified Buyer = More Deal

Complete

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4.2 Renting Flow Chart

•Getting Written Appointment as An Agent to sell and to buy

property
Getting
Appointment •(see attachment 1)
Appointment Form Key Collection Form

• Property inspection and taking picture for marketing

Property
Inspections

•- Online Marketing ( property4u.com.my,

mudah,iproperty.property guru, investment forum propwall.ect )
Marketing -off line marketing ( fliers)

•-Bring Prospect Buyer for Viewing.

Prospect -Negotiating Price Viewing Form
buyer

•- we will collect 1(One ) Month Rental and bank in into our

Collecting company client account
Earnest
Deposit
Agreement to Rent Form
1 mth

•-prepared by Our Office

Signning •-Tenant To pay remaining Amount $
Tenancy

•Done by our Negotiator @ LHDN *See attachment C-02 for the tax
Stamping
structure

•Happy Landload + Happy Tenant = More Deal

Complete

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5.0 Categories of Land Usage:

Categories of
Land Usage:

Agricultural Building Industrial

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5.1 The main Sectors of Real Estate in Malaysia.

Real Estate Sectors

Residential Commercial Industrial Agricultural

Estate / Plantations
Terrace / Link Shop houses /
Terrace factories — more than 100
Houses Offices
acres.

Flats / Apartments Semi-detached Smallholdings —

Retail units
/ Condominiums factories less than 100 acres.

Semi-detached Office building Detached factories

Shopping
Bungalow lots Industrial land
Complexes

Townhouses Commercial lands Flatted factories

Service Apartment Hotels / Resorts

SOHO (Small Office

/ Home Office

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5.2 Land Title & Ownership

Registry
Land Office

Land Titles Qualified

Final
Possessory
Strata

5.2.1 Important Information In Land Title

The owner's The usage

Land Size
name of the land

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 5.3 Most relevant type of titles for negotiators:-

which gives the owner

perpetual ownership
Freehold
Which allows the owner
to stay in possession only

Leasehold
for a specified period.
When the specified
period ends, ownership
reverts back to the
authority which the
issued the title.
Generally, a house is
issued a title for the piece
of land on which the
house is erected; and an
apartment is issued a
strata title for the specific
area on the specific floor
of the building in which
the apartment or
condominium is located.
A search can be done at
the relevant land offices
or registries to determine
whether the title is
encumbered. If the title
has not been issued, a
search can be done on
the master title on which
the whole or part of the
housing project is
erected.

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6.0 Professional Fees Allowed by The Board
6.1 Maximum fee on Sale & Purchase Transactions

Land and Buildings Maximum fee of 3%

Fees for other services such as a joint venture, sale of

company, property swaps, etc. Maximum fee of 3%

Chattels including plants and machines 10 % of the

proceeds

6.1.1 Minimum fee on Sale & Purchase Transactions

• As above, subject to a minimum fee of RM1,000.00 per
property.
• The above scale applies to any sale or purchase by way of
private treaty, tender or any other mode of disposal or
acquisition.
• For project marketing, there are no limits on the fee that
the agent can charge.
• The above scale of fees shall not apply to the sale of
foreign properties in Malaysia or sale of Malaysian
properties in foreign countries, and
• The above scale of fee may be subject to a maximum
discount of 30%" or the words "subject to."

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6.1.2 Maximum Fee on Tenancy / Lease
Tenancy/ Lease
Maximum Fee
Up to 3 years 1.25 months rental
Exceeding 3 years up to 4 years 1.50 months rental

Exceeding 4 years up to 5 years 1.75 months rental

Exceeding 5 years (without 1/5 months rental
option for renewal)
Exceeding 5 years (with option 1.75 months rental + 0.25
for renewal) months rental for every
additional year
_

6.1.3 Minimum Fee on Tenancy / Lease

• As above, but may be subject to a maximum discount of
30% or a minimum fee of 1 month's rental.
• For tenancies less than one year, the fee may be calculated
on pro rata basis,
• The above scale shall not apply to serviced offices or
apartments or any other premises of similar nature.
Rent reviews: 50% of the fees chargeable under lettings.
6.2 Additional Claims
In addition, claims may be made for
• the cost of printing, plans, copies of documents,
lithography, traveling (only where the distance between
the estate agent's office and the property is more than 40
km) and other expenses actually incurred;
• The cost of media advertisements, signboards, brochures
and other promotional material.
NOTE: The above additional claims may not be incurred by the
registered estate agent without the prior concurrence of the
client.

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6.3 Types of Payment in a Property Transaction
6.3.1 Sale & Purchase Transaction
• It is a practice for a prospective Purchaser to pay an
earnest deposit to the Registered Estate Agent (Vendor's
Agent) as stakeholder to secure the property.
• Upon signing of the Sale and Purchase agreement, this
earnest deposit shall be construed as part payment of
the 10 % down payment towards the purchase of the
property.
6.3.2 Forfeiture
• If the Purchaser fails to execute the Sales & Purchase
Agreement within a certain time frame, his/her deposit
will be forfeited.

• If the Vendor fails to execute the Sales & Purchase

agreement, the Purchaser shall be entitled to the remedy
of specific performance (legal action) against and at the
cost and expense of the Vendor. If the Purchaser does not
institute an action for specific performance, then the
Purchaser may have the earnest deposit refunded plus a
sum equivalent to the earnest deposit paid to the Vendor
as compensation.
6.3.3 Abortive Fee
• In the event the transaction is aborted by the Purchaser/
Vendor before the Sales & Purchase agreement is signed
but earnest deposit is paid, Key Properties will be paid a
fee equivalent to 50% of the earnest deposit or forfeiture
deposit or 50% of agreed full fees, whichever is less.
6.4 When are fees payable?
6.4.1 Rental
• The signing of the Tenancy Agreement; or
• Occupation of the premises; whichever is earlier

19
6.4.2 Sales
• The signing of the Sale and Purchase Agreement.
• The Registered Estate Agent may deduct his fees from the
deposit or earnest money if he is a stakeholder provided it
is in the written concurrence of his client.
• The Registered Estate Agent is entitled to his fees if any
introduction made during the period of his appointment
leads to a successfully concluded sale / rental even if the
appointment has expired or has been terminated at the
time of the completion of the transaction.

7.0 Parties in REAL ESTATE Transactions

• Sellers/Buyers
• Landlords/Tenants
• Estate Agents/ Negotiators
• Other advisors
• Accountant
• Valuers
• Architect/ Engineer/ Building surveyor
• Insurance Broker
• Lawyers
• Banker / Mortgage broker

20
Appendix
F1-Appointment to act as an agent (to secure
purchaser)

1688

21
Appendix
F2-Appointment to act as an agent (to secure tenant)

1288

22
Appendix F3-Agreement to Purchase

3388

23
Appendix
F4-Agreement to Rent

1188

24
Appendix
F5-Viewing form

Appendix
F6-Acknowledgement of received keys

0088

25
Appendix : T1- Title

26
27
28
L1-Valuers, Appraisers & Estate Agents Act 1981

29
L2-The Malaysian estate Agency standards

30