REPORT RES614 Part A - Multiple Topics

BACHELOR OF ESTATE MANAGEMENT
COLLEGE OF BUILT ENVIRONMENT
UNIVERSITI TEKNOLOGI MARA
GROUP ASSIGNMENT FOLDER
COURSE CODE : RES 614

COURSE NAME : PROFESSIONAL PRACTICE 1
LECTURER'S NAME : SR DR HAFISZAH ISMAIL
CLASS : CFAP225 5B
Name of Group Members Matric No.
NUR AQILAH BINTI MOHAMAD HIDAYAT 2022800462
NURUL BATRISYIA BINTI MOHD RADI 2022494174
AINA FASIHA BINTI HASHIM 2022626662
KHAIRUL AIZAD BIN ABDUL HALIM 2022699956
MUHAMMAD UMAIR HAKIM BIN KHALIL 2022876212
Name of Group Leader:

MUHAMMAD UMAIR HAKIM BIN KHALIL
Matric No:
2022876212
Assignment Title:
PART A: MULTIPLE TOPICS
Submission Date: 29th NOVEMBER 2023
DECLARATION:
We declare that no part of this assignment has been copied from another person's work except
where due acknowledgement is made in the text. This assignment has yet to be written for me
by anyone except where such collaboration has been authorised by the lecturer concerned.
Group's Leader Signature: Date: 29th November 2023

ACKNOWLEDGEMENT
In performing our assignment, we would like to express a great appreciation to all

involved with invaluable and constructive suggestions during the planning and development
of this report. The success and outcome of this report required a lot of guidance and assistance
from many people. We are incredibly fortunate to have gotten this along with completing our
work.
We want to thank Sr Dr Hafiszah Ismail for allowing us to do this assignment work and
providing us with all support and guidance, which made us complete the task on time. We are
incredibly grateful to her for giving us good assignment guidelines throughout numerous
consultations.
Last but not least, we would like to thank our classmates, especially all the group
members, for their help, directly and indirectly, in completing our assignment. With the
cooperation of all the members, we could finish it in time. Thank you.
TABLE OF CONTENTS
1.0 INTRODUCTION............................................................................................................. 1
1.1 BACKGROUND OF REGISTERED VALUER .............................................................. 1

1.2 BACKGROUND OF VALUATION FIRM ...................................................................... 3
2.0 TASK QUESTIONS ........................................................................................................ 4
2.1 THE ROLE OF INSPEN IN PROVIDING TRAINING AND RESEARCH FOR THE REAL
ESTATE INDUSTRY AND PROFESSIONS IN MALAYSIA.................................................. 4
2.1.1 ROLE OF INSPEN IN PROVIDING TRAINING ........................................................ 4

2.1.2 ROLE OF INSPEN IN PROVIDING RESEARCH ...................................................... 7
2.2 (A) THE COMPOSITION OF THE BOARD OF VALUERS, APPRAISERS, ESTATE
AGENTS, AND PROPERTY MANAGERS MEMBERS. ....................................................... 9
2.2 (B) BACKGROUND AND CURRENT POSITION OF THE BOARD MEMBERS .......... 11
2.3 THE USE AND THE IMPORTANCE OF THE CLIENT’S ACCOUNT REFERRING TO
RULE 57 ON INSURANCE COVER FOR CLIENT’S MONEY (VALUER, APPRAISERS,
ESTATE AGENTS, AND PROPERTY MANAGERS ACT 1981 (ACT 242) & RULES. ...... 30
2.3.1 CLIENT’S ACCOUNT ............................................................................................. 30

2.3.2 USE OF CLIENT’S ACCOUNT ............................................................................... 30
2.3.2.1 HOLD AND RECEIVE THE CLIENT’S MONEY ............................................... 30
2.3.2.2 MAKE AUTHORIZED PAYMENTS .................................................................. 30
2.3.2.3 HOLD CLIENT’S MONEY IN TRUST ............................................................... 30
2.3.3 IMPORTANCE OF CLIENT’S ACCOUNT ............................................................... 31
2.3.3.1 FOR TRANSPARENCY AND ACCOUNTABILITY ........................................... 31
2.3.3.2 GAIN TRUST AND CONFIDENCE AMONG CLIENTS .................................... 31
2.3.3.3 SAFEGUARD FOR THE CLIENT’S MONEY .................................................... 32
2.4 THE DIFFERENCE BETWEEN THE FOLLOWING: ..................................................... 33
2.4.1 REGISTERED APPRAISER AND REGISTERED VALUER .................................... 33

2.4.1.1 SUMMARIZE DIFFERENCES .......................................................................... 33
2.4.1.2 EXPLANATION OF DIFFERENCES ................................................................ 33
2.4.2 PROBATIONARY VALUER AND REGISTERED VALUER..................................... 35
2.4.3 BROKER, REAL ESTATE NEGOTIATOR, AND REGISTERED ESTATE AGENT . 37
2.5 THE IMPORTANCE OF PROFESSIONAL INDEMNITY INSURANCE FOR EACH
REGISTERED VALUATION FIRM IN MALAYSIA.............................................................. 39
2.6 TYPES OF MISCONDUCT AND ETHICS OF REGISTERED VALUERS AND

APPRAISERS ACCORDING TO PART IX, RULES (ACT 242) .......................................... 41
2.6.1 CONDUCTING PROPERTY VALUATIONS AS AN ESTATE AGENT .................... 41

2.6.2 CONFLICT OF INTEREST DISCLOSURE ............................................................. 42
2.6.3 PROFESSIONAL FEES ......................................................................................... 43
2.6.4 ACCURACY OF STATEMENT ............................................................................... 44
2.6.5 DILIGENCE ON VALUATION REPORTS ............................................................... 44
2.7 FOUR (4) MATTERS FORBIDDEN FOR ADVERTISEMENT FOR ANY REGISTERED
VALUER/REGISTERED VALUATION FIRM PRACTICES................................................. 46
2.7.1 AN INACCURATE OR MISLEADING STATEMENT OF FACT ............................... 46

2.7.2 AN EXPLICIT SOLICITATION OF INSTRUCTIONS ............................................... 46
2.7.3 AN EXPLICIT COMPARISON BETWEEN THE SERVICE OFFERED BY A FIRM
WITH THAT OF OTHER FIRMS...................................................................................... 47
2.7.4 SELF- LAUDATORY STATEMENTS ...................................................................... 48
3.0 REFERENCES ............................................................................................................. 49
4.0 APPENDICES ............................................................................................................... 50

1.0 INTRODUCTION
Property valuation is the foundation of Malaysia's dynamic real estate market, playing a
critical role in deciding property prices, investments, and financial decisions. Becoming a
registered valuer in Malaysia is not only a prestigious endeavour, but also an important
profession that contributes to the accuracy, transparency, and legitimacy of property
evaluations. The valuation process necessitates a thorough awareness of market trends, legal
frameworks, and property dynamics, making it a prestigious field sought after by individuals
hoping to navigate Malaysia's complex real estate market.
For this assignment, we are given tasks to conduct discussions and interview with a
registered valuer from a registered valuation firm. We have chosen Island Property
Consultants Sdn Bhd (IPC) which located at Wisma IPC, No 11, Jalan Belangkas, Taman
Maluri, off Jalan Kampung Pandan, 55100, Kuala Lumpur, Malaysia. We interviewed the
Director of IPC Sdn Bhd, Tuan Hj. Sr. Anjaniman Bin Abu Kassim on Wednesday, 8th
November 2023. He is a registered valuer who has a broad experience in property valuation
field.
1.1 BACKGROUND OF REGISTERED VALUER
Tuan Hj. Sr. Anjaniman Bin Abu Kassim is a registered valuer who has a broad experience
in property valuation field. His expertise ranges from capital valuation of property, valuation
for rating and assessment, valuation and consultation for compulsory land acquisition,
valuation of plant and machinery, valuation for submission to the Security Commission and
Bursa Malaysia, and property portfolio management to property and land matters consultation
in relation to investment and private financial initiative (PFI). He is highly involved in giving real
estate guidance and assistance to corporations, property investors, developers, and other
property players. Tuan Hj. Sr. Anjaniman Bin Abu Kassim graduated with Advanced Diploma
in Estate Management from Universiti Teknologi MARA (UiTM) and after that he took Masters
in Property Investment at Universiti Teknologi MARA (UiTM). From 1991 to 1992, he worked
as a Branch Manager at Sailan & CO at Muar Branch. From 1993 until 1998, he was the Head
of Rating Department at Kumpulan Jurunilai Sdn Bhd in Kuala Lumpur. He registered as a
Probationary Valuer (PV) in 1996 and become a Registered Valuer (RV) in 1998. After he
received the certificate, he resigned from his position in 1998 and open his own valuation firm
in January 1999 which is IPC Sdn Bhd.
1
Figure 1 Qualifications and Professional Membership Details about Tuan Hj. Sr.
Anjaniman Bin Abu Kassim
Source: ipckl.com
Branch Manager
for Sailan & Co.
in Muar
(1991 until 1992)
Director Of
Director Of IPC Rating
Department for
Kuala Lumpur
HQ Positions Kumpulan
Jurunilai Sdn
(2003 until Held Bhd, Kuala
Present) Lumpur
(1993 until 1998)
Principal Of IPC
Island Property
Consultant
(1999 until 2003)
Figure 2 Positions held by Sr Anjaniman
2
1.2 BACKGROUND OF VALUATION FIRM
Sr Anjaniman Bin Abu Kassim founded IPC Island Property Consultants Sdn Bhd (IPC)
in Kuala Lumpur in 1999. In 2003, Sr Azman Bin Wahid and Sr Zulkefli Bin Ahmad joined the
company's board of directors to help expand operations in Kajang and Klang. IPC expanded
further to Johor Bahru and Melaka in 2004, and 2006, with the opening of new branches
managed by new directors Haji Mohamad Bin Atan and Sabiyar Bin Marto, respectively. IPC
Island Property Consultants Sdn Bhd handled all property consultant services, including
property evaluation, real estate agency, and property management, when it initially opened its
doors in 1999. The job load for the three (3) specialties of property consultancies, on the other
hand, expanded rapidly over time. As a result, IPC chose to establish three (3) independent
firms, namely IPC Property Consultants Sdn Bhd, IPC Property Management Sdn Bhd, and
IPC Realty Sdn Bhd, to provide property valuation, property management service and real
estate agency respectively, in 2010.
IPC's growth is natural and consistent since it has a team of highly experienced key
specialists, some with more than 20 years of working experience in the property services
business in valuation, real estate agency, project marketing, property management, and
feasibility study. With the establishment of new offices in Seremban, Sungai Petani, Kuantan,
Kuching, Kota Bharu, Ipoh, and Putrajaya, IPC expanded to a higher level and became a well-
established property consultancy firm, forming twelve (12) offices including the head office
doing property valuation services, twelve (12) offices including the head office doing real
estate agency services, and twelve (12) offices including the head office doing property
management services. According to the interview, Sr Anjaniman stated that the would be
additional 2 more branches for the 3 main entities which will total up to 14 offices for each
entity by the end of year 2023.
Twelve prominent financial institutions in Malaysia, namely Maybank, RHB Bank

Berhad, Bank Islam Malaysia Bhd, Bank Simpanan Nasional, SME Bank, MBSB Bank Bhd,
Bank Muamalat Malaysia Bhd, Bank Kerjasama Rakyat Malaysia Bhd, Agro Bank, Bank
Persatuan, Bank Pembangunan Malaysia Bhd, and Bank Muamalat Indonesia (Malaysia
Branch), currently have IPC on their valuation panels. Most banks have them on their panel
for real estate agent services as well.
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2.0 TASK QUESTIONS
2.1 THE ROLE OF INSPEN IN PROVIDING TRAINING AND RESEARCH FOR

THE REAL ESTATE INDUSTRY AND PROFESSIONS IN MALAYSIA.
Answered by: Khairul Aizad Bin Abdul Halim (2022699956)
INSPEN, commonly known as the National Institute of Valuation (Institut Penilaian

Negara), is a well-known Malaysian institution specialized to valuation and real estate.
INSPEN, which was established under the Ministry of Finance, is the country's major institute
in charge of the education, training, research, and professional development of those working
in the valuation profession and real estate business.
2.1.1 ROLE OF INSPEN IN PROVIDING TRAINING
INSPEN provides comprehensive training programs and courses for prospective

appraisers, property professionals, and individuals working in the real estate industry. These
courses include a wide range of subjects, including property valuation, property management,
real estate agent, and professional ethics. The institute guarantees that individuals pursuing
professions in property appraisal obtain the necessary education and practical knowledge.
Everyone working in the property industry, whether in the public or private sector, has access
to training. The Professional Development Centre, formerly known as the Training Centre, has
been accredited by the Malaysian International Organisation for Standardisation, SIRIM
Berhad. INSPEN will provide great training services that satisfy customer objectives and real
estate sector criteria, with a focus on continuous improvement. The Professional Development
Center's Quality Objective is as follows:
1. Managing all annual training program
2. Distribute the Annual Training Program to clients by December 31st of each year.
3. Ensure that the average achievement rate of each training program's objectives is
at least 80%.
4. Assure that the average accomplishment of lecturers is at least 80%.
The Development and Expertise Unit is in charge of providing training in the real estate
sector for services and other specialised programmes. Furthermore, the unit offers consulting
and expertise in real estate-related exercises. The objectives of the Development and
Expertise Unit are as follows:
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1) To provide and develop human resources in response to difficulties for the Valuation
and Property Services Department (JPPH), public agencies, and real estate industry
stakeholders through property valuation and service training programmes.
2) To help the Valuation and Property Services Department (JPPH) and other
government agencies build administrative and management skills by providing
management, administration, and information technology training programmes.
One of the functions of the Development and Expertise Unit is it provides professional
and technical training programs for departments, government agencies, and real estate
industry participant, provides property valuation training and services to external
authorities, offers management, administrative, finance, and information technology
courses and services. One of the examples of programs offered are as shown below:
a) Property Evaluation & Services
Assessment training focuses on precise property valuation, the ability to undertake

assessments for a variety of objectives, and exposure to current property market
challenges. Machine and equipment plant assessment, intellectual property (IP), business
valuation, and natural resource evaluation have all been expanded to meet modern
demands. Property services training covers topics such as property management,
feasibility studies, property agency practise, project management, and others. This
programme is open to management and professional groups (Assessment Officers) as
well as support groups (Assistant Assessment and Evaluation Assistants) at JPPH,
municipal governments, and other government organisations. Private sector and other
property industry experts are also asked to contribute as needed.
b) Data Administration and Research
This programme is one of the essential areas that must be directed in carrying out
the assessor's activities and roles. Exercises in both programmes are also accessible, with
a focus on developing skilled professionals in the management of NAPIC data and doing
real estate research.
c) Professional Development
This program was designed to train real estate professionals around the country.
The emphasis is on increasing intelligence and understanding of contemporary real estate
sector trends. Malaysian Valuers, Appraisers, and Real Estate Agents also recognized the
training program's accreditation.
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d) Management and Administration
The goal of this programme is to improve the management skills of department

professionals and officers at all levels. The programme focuses on creating good attitudes,
motivation, physical and mental well-being, and equipping officers to be effective civil
servants. Leadership, strategic planning, problem resolution, self-development, and
motivation are all aspects of management training. Administrative programmes are
provided to provide professionals with relevant knowledge and skills in fields such as
finance, government administration, human resource management, and so on. The
programme is open to both technical and non-technical employees of the department's
support division and other government agencies. Information Technology. This program is
accessible to learn ICT knowledge and skills in step with the country's and the world's
progress in IT development. Companies are being formed in order to turn positions into
computer-literate organizations.
e) Induction Programmes (General and Special)
For new JPPH staff, INSPEN has a unique programme. Prior to their assignment
to their appropriate jobs, the programme seeks to familiarise personnel with specific
government and departmental needs.
f) The Technical Cooperation Programme of Malaysia (MTCP)
Real estate valuation is the subject of the courses offered, and participation in the
programme is open to all ASEAN and developing nations. The primary objectives of the
programme are to build capacity, especially in real estate, exchange knowledge and
experience, and accumulate resources in order to support and aid in the growth of member
nations. Programme examples that are available are:
• Attachment Programme in Valuation Practise

• International Certificate Course in Property Taxation
• International Certificate Course in Property Valuation
• IT in Real Estate Business International Certificate Programmes
• International Certificate Programme in Special Property Valuation
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2.1.2 ROLE OF INSPEN IN PROVIDING RESEARCH
National Institute of Valuation (Institut Penilaian Negara) or better known as INSPEN, is

also widely responsible in providing the Research and Innovation Program in real estate
industry. Together with the founding of INSPEN, a training and research centre for the
Department of Valuation and Property Services, the Research and Innovation programme was
launched in 1985. The programme started out with two units: the Property Information Unit,
which was established specially to provide the Real Estate Market Report, which is published
annually, and the Research Unit, which produced more focused research on the internal use
of departments and focused more on national research. When NAPIC was founded in 1999,
the Property Information Unit of INSPEN was abolished, and the Product Consulting and
Product Development Unit was created as a result.
This unit's primary duty is to offer external agencies research and training consulting
services; the applying agency is responsible for consulting fees. Publication of research-
related documents for both internal and external distribution is another duty of the unit. In
2002, the Ministry of Finance tasked INSPEN with acting as a coordinator for the funding
allocation for real estate research. The NAPREC fund will provide funding to organisations
chosen to conduct specialised real estate research initiatives. This duty was assigned to the
NAPREC Unit, whose main responsibility is to supervise, track, and allocate research funds
to investigators working on linked projects. Consequently, the Product Consultancy Centre
and Development, Data Centre for Research and Analysis, and NAPREC Centre are now part
of the Property Research and Development Programme.
This program’s main function is to conduct research activities associated with real estate
industry, coordinating and organizing research activities held at the JPPH branch center and
to introduce and develop Research Intern (RI) JPPH. The research unit provides research
services to the Department in a variety of subjects, including assessment, real estate
investments, property development, real estate concepts, property market, IT in property,
Buildings costs, Management and INSPEN research papers.
(i) Product Consulting and Development Center
The primary responsibilities of this programme include publishing research findings,

distributing real estate information to experts in the property and public sectors, and offering
valuation and property consulting services to both internal and external clients. To assist
INSPEN in competing on a national and worldwide level, the centre provides product
development and consulting services. Programmes offered by this centre in Malaysia include
the following: Introduction and Implementation Course Act 118, Act 318 & Act 663 for National
Housing Company (SPNB) (July 2012), Seminar on Issues and Challenges In Land
7
Acquisition for Malacca Customs Corporation (PERTAM) (October 2012), Legal Course &
Property Assessment for Amanah Raya Berhad (December 2013 & February, March 2014),
and many more. As an example of programmes that have been carried out abroad, consider
the following which are Training Programme: Real Estate Valuation: Principles and Practise
for the Directorate of Town Planning and Survey Government of Sharjah, United Arab
Emirates (April 15 - July 2, 2006) and Training Programme: Basic to Real Estate Valuation for
the Directorate of Town Planning and Survey Government of Sharjah, United Arab Emirates
(17 April -14 June 2006).
(ii) National Coordinator for Real Estate Research (NAPREC) Centre
The responsibility for overseeing and allocating research funds allotted by the government
in each Malaysian Plan falls to INSPEN. Coordination of the flow of funds for real estate
research to real estate research organisations is one of its main objectives. Since 2002,
INSPEN has served as the National Coordinator for Real Estate Research (NAPREC). As the
Coordinator, this unit oversees and manages funds for real estate research by identifying
major topics that require inquiry within the real estate business. Real Estate Development and
Finance (REDF), Real Estate Valuation (REV), Real Estate Laws and Policies (RELP), Real
Estate Industry Analysis Studies (REIAS), and Real Estate Management and Services
(REMS) are the five main areas of NAPREC that have seen the completion of over 140
research projects to date. Furthermore, promotion of the allocation of funding and research
findings is carried out in order to broaden the dissemination of research outputs to real estate
practitioners through appropriate approaches. Aside from organizing seminars or workshops
as platforms to distribute research outcomes to real estate practitioners, numerous initiatives
have been taken to widen the circulation of research findings to real estate practitioners. The
research findings are disseminated via social media or government websites that are available
to real estate professionals. Furthermore, the research findings are distributed through real
estate groups or organizations. It is intended that by following these steps, research findings
will be more easily accessible and utilized by real estate practitioners. As a result, the study
provided corresponds to the present needs of the real estate field. Examples of the list of
NAPREC Projects that are already completed recently are Assessment Of Economic Worth
Of Implementing Green Wall And Green Roof As Sustainable Approach To Mitigate Urban
Heat Island (Uhi) Via Statistical Techniques, Developing A Heritage Buildings’ Revitalization
Management Framework For The Purpose Of Commercialization, Lot-Based Solution For
Sustainable Mitigation Of Urban Heat Island (Uhi) Through Implementation Of Green
Infrastructure (Gi) and many more.
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2.2 (A) THE COMPOSITION OF THE BOARD OF VALUERS, APPRAISERS,
ESTATE AGENTS, AND PROPERTY MANAGERS MEMBERS.
Answered by: Nurul Batrisyia Binti Mohd Radi (2022494174)
Figure 1 Logo of Board of Valuers, Appraisers, Estate Agents, and Property Managers.
The Board of Valuers, Appraisers, Estate Agents, and Property Managers is a formal
organization and has been described as a “body corporate” or a legal entity which is created
by law. It has perpetual succession which means continuous existence and does not expire
unless it is legally dissolved. Additionally, the Board is granted the authority to act legally in its
own name. It has a “common seal,” a special stamp that has been used to stamp official
documents. This implies that it could enter the documents into legal agreements and can be
involved in legal disputes whereby it can sue others and others can sue it.
President of Board
(Director General of JPPH)
Registrar
4 3 3
6 3
registered registered registered
registered registered
valuers valuers property
valuers estate agents
(nominated by (nominated by managers
(nominated by
(public service) ISM) President) (nominated by
President)
President)
Chart 1 The Composition of Board’s Members.
9
Within this organization, there are several members appointed by the Minister of
Finance. This organization are responsible for regulating the Valuers, Appraisers, Estate
Agents and Property Managers practicing in Malaysia. For example, all individuals from the
profession of valuers, appraisal, estate agent and property management that are registered
under the Board will be monitored by the Board to ensure the integrity of the professions can
be maintained and gain public trust. According to Section 9 (2), the Board consists of members
that represent various sectors related to property valuation, appraisal, real estate agency and
property management. The composition of the Board includes the Director General from public
service (Property Valuation and Property Services Department) as the President of the Board.
The current president of the Board of Valuers, Appraisers, Estate Agents and Property
Managers is Sr. Razak Bin Yusak who also holds the position of Director General of Property
Valuation and Services.
Furthermore, there are six registered valuers from the public service, providing a
governmental viewpoint to the Board. The Board’s structure further includes four registered
valuers with a minimum of six years of professional experience as valuers and nominated by
the Institution of Surveyors Malaysia (ISM) or other recognized professional bodies, which
established a bridge between the public and private sector. Moreover, there are three
registered estate agents with at least six years of experience as an estate agent and
nominated by the President of the Board. Another three registered valuers and three
registered property managers are also nominated by the President of the Board as members.
Importantly, all individuals who are not from public service either registered valuers, registered
estate agents or registered property managers must be Malaysian citizens actively practicing
their respective professions within the country.
In conclusion, this composition consisting of public service representatives and

experienced professionals from both the public and private sectors has fostered a balanced
regulatory body in the field of appraisal, valuation, real estate agency, property management.
With this, the Board can ensure comprehensive supervision in maintaining the registers under
the Board of Valuers, Appraisers, Estate Agents and Property Managers.
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2.2 (B) BACKGROUND AND CURRENT POSITION OF THE BOARD MEMBERS
Answered by: Aina Fasiha Binti Hashim (2022626662)
PRESIDENT
YBrs. Sr Abdul Razak bin Yusak
Position in Board • President of the Board of Valuers, Appraisers, Estate
Agents, and Property Managers Malaysia
Current Occupation • Deputy Director General of Valuation and Property

Services (Strategy Policy)
Other Positions • Director General of Valuation and Property Services

Department (JPPH)
• Registered Valuer and Property Manager (V0785,
PM0019)
• Deputy President Business Valuers Association Malaysia
Education
• Master of Real Estate Investment - UiTM
Background
• Bachelor of Property Management - UTM
Work Experience • Members of JPPH Segamat as Senior Director

• Comparative study on the Basis and Principles of
Assessing Compulsory Acquisition
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REGISTRAR
Sumarni Bt. A. Rahman
Position in Board • Registrar of the Board of Valuers, Appraisers, Estate
Agents and Property Managers Malaysia
Current Occupation • Registrar in Board of Valuers, Appraisers, Estate Agents

and Property Managers Malaysia
Other Positions • Advocate & Solicitor
Education • Master of Law – UiTM

Background • Bachelor of Laws (LLB) - UM
• Diploma of Shariah Legal & Practice - IIUM
Work Experience • 9 years of experience in the legal community and running a

start-up legal firm - Messrs Marni Rahman & Associates
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MEMBER
Sr Mohd Nazri bin Ahmad Zahari
Position in Board • Registered Valuer from Public Service
Current Occupation • Deputy Chief Director of Assessment and Property

Services (Strategic Policy)
Other Positions • Registered Valuer
• Member of BOVAEP
Education -
Background
Work Experience
• Advisor of IRERS 2020 Organizing Committee
• Director of INSPEN
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MEMBER
Sr Rosni Nawati binti Ngah
Current Occupation • Deputy Director General of Valuation and Property

Services (Operation)
Other Positions
• Registered Valuer
Education
• Bachelor of Building Surveying
Background
• Master of Administration and Land Development
Work Experience
• State Director of JPPH Pulau Pinang
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MEMBER
Sr Lee Tong Bian
Current Occupation • Director, Strategic Investment Privatization Division of

JPPH
Other Positions • Registered Valuer and a member of BOVAEP
Education -
Background
Work Experience -
15
MEMBER
Sr Norhayati Binti Awang
Current Occupation -
Other Position • Registered Valuer and a member of BOVAEP
Education -
Background
Other Positions -
16
MEMBER
Sr Aina Edayu Ahmad
Position in Board • Registered Valuers from Public Service
Current Occupation • Director of National Property Information Centre (NAPIC),

Valuation & Property Services Department, Ministry of
Finance Malaysia
Other Positions • Registered valuer and a member of BOVAEP (V0803,

PM0803)
• Member of the Royal Institution of Surveyors Malaysia
• Board Member of Lembaga Perumahan Negeri Pulau
Pinang
Education • Master of Science (Estate Management) - UM

Background • BSc (Hons) Valuation & Estate Management - University of
the West of England
• Centre of Preparatory Study
Work Experience
• Deputy Director of NAPIC
• Director Strategic Planning & Standards of Practice
Valuation & Property Services Department
• Head of Management & Information Technology Centre of
INSPEN
• Head of Court Reference Unit, JPPH
• Valuation Officer, NAPIC
• Valuation Officer KVG Lambert Smith & JPPH
17
MEMBER
Sr Khalid Bin Abdul Mutalib
Position in Board • Registered Valuers from Public Service
Current Occupation • Deputy Director (Property Inventory), National Property

Information (NAPIC), JPPH

• Member of The Royal Institution of Surveyors Malaysia
(RISM) and Accredited Training Professional (ATP)
Education -
Background
Work Experience -
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MEMBER
Sr Ery Zuwardi Anuar
Position in Board • Registered Valuer nominated by ISM
Current Occupation • Registered Valuer at Intra Harta Consultants Sdn Bhd
Education • Diploma in Estate Management – UiTM

Background
Work Experience
• 13 years as Registered Valuer, Estate Agent, Property
Manager FRISM, MPEPS, MIEA – Intra Harta Consultants
Sdn Bhd
• 3 years as Registered Valuer & Estate Agent, MRISM,

MPEPS, MIEA – Khong & Jaafar Sdn Bhd
• 7 years as Registered Valuer & Estate Agent, MRISM –

DTZ Nawawi Tie Leung Sdn Bhd
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MEMBER
Sr Tan Hoon Tiong
Position in Board • Registered Valuer nominated by ISM
Current Occupation -
Other Positions • Registered Valuer and a member of BOVAEP
Education -
Background
Work Experience -
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MEMBER
Sr Lim Boon Ping
Position in Board • Registered Estate Agent nominated by the President of the
Board
Current Occupation • Director, Training & Development, Kim Realty
Other Positions • Fellow of the Malaysian Institute of Estate Agents

• MIEA Accredited Trainer
• Member of Malaysian Institute of Professional Property
Managers (MIPPM)
• Member of the Association of Valuers, Property Managers,
Estate Agents and Property Consultants in the private
sector of Malaysia (PEPS)
• Member of the Royal Institution of Surveyors Malaysia
(RISM)
Education • Bachelor of Property – Auckland, New Zealand
Background
Work Experience
• 22 years of experience in Real Estate
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MEMBER
Sr Noor Bayati Binti Mohamed
Board
Current Occupation • Founder & Principal RIZQ Realty
Other Positions • Member of BOVAEP

• Asisstant Secretary of Persatuan Perunding Hartanah
Muslim Malaysia
Education -
Background
Work Experience -
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MEMBER
Sr Irhamy Bin Ahmad
Board
Current Occupation • Founder & Managing Director Irhamy Valuers International
Other Positions • Member of BOVAEP

• President of the Malaysian Institute of Professional Estate
Agents and Consultants
• Vice President of International Real Estate Federation
Malaysia
Education • BSc, Land Administration - University of East London
Background
Work Experience
• 24 years as Founder & Managing Director - Irhamy Valuers
International from the year 1999 until present
• Managing Director & Chartered Surveyor – Irhamy & Co

Chartered Surveyors
• 4 years as Chartered Surveyor at Valuation Office Agency,

England
23
MEMBER
Sr Yapp Fook Sin @ Peter Yap
Position in Board • Registered Valuer nominated by the President of the Board
Current Occupation • Group Managing Director of JS Valuer Group

• Member of Board
Education • BSc (Hons) Degree Estate Management – Northumbria

Background University
Work Experience
• Group Managing Director – JS Valuer Group of
Companies
• Property Valuer - JS Valuers Property Consultants Sdn

Bhd
24
MEMBER
Sr Ganesh A/L Chinnappan
Current Occupation • Executive Director of Raine & Horne International Zaki +

Partners Sdn. Bhd.
Other Positions • Registered Valuer and Estate Agent under the Board of
Valuers, Appraisers and Estate Agents (V-0420, E-1205)
• Chartered Vice President in the Malaysian Institute of
Professional Property Managers (MIPPM).
Education
• MSc. Real Estate (Distinction) - University of Reading
Background
• Bachelor of Surveying (Property Management)
• Diploma in Valuation - UTM

Work Experience
• Chartered Vice President in the Malaysian Institute of
Professional Property Managers (MIPPM).
25
MEMBER
Sr Terence Yap Wei Tzen
Current Occupation
• Director HASB Consultants (Sarawak) Sdn Bhd
Other Positions • Member of Board
• Registered Valuer, Estate Agent, Property Manager -
(V0680), (E1929), (PM0680)
Education • Bachelor of Estate Management – UM

Background
Work Experience
• HABS Consultant
26
MEMBER
Sr Hj. Kamaruzaman Bin Jamil
Position in Board • Registered Property Manager nominated by the President
of the Board
Current Occupation
• Deputy Managing Partner of WMMK and Managing
Director of MK and MKPM
Education • BSc Land Administration – North East London Polytechnic
Background
Work Experience
• Experience in Plant and machinery valuation whilst on
attachment with Henry Butcher Leopold Farmer & Sons,
London.
27
MEMBER
Mr. Chan Chee Keong (Richard)
of the Board
Current Occupation
• Director Consultant of RCMC Sdn Bhd
Other Positions
• Registered Property Manager (PM0025)
• Principal Consultant from RCMC Sdn Bhd for Bachelor of

Building and Property Management (Hons) at UTAR
Education -
Background
Work Experience
• Past President of PPK Malaysia (Malaysia Shopping Malls
Association)
• Founder member of CASC (Council of Shopping Centres)
• Member of MRCA (Malaysian Retailers Association of

Malaysia)
28
MEMBER
Ms Teo Chui Ping
of the Board
Current Occupation
• Managing Director of Centro Properties Group
Other Positions • Member of Board

• Registered Property Manager (PM2098)
• Director, GreenRE Sdn Bhd
• Secretary General of REHDA Malaysia
Education • B. Com, LLB (Hons), M.AppFin., Barrister & Solicitor, High
Background Court of Malaya, Supreme Courts of Western Australia and
Victoria
Work Experience -
29
2.3 THE USE AND THE IMPORTANCE OF THE CLIENT’S ACCOUNT REFERRING
TO RULE 57 ON INSURANCE COVER FOR CLIENT’S MONEY (VALUER,
APPRAISERS, ESTATE AGENTS, AND PROPERTY MANAGERS ACT 1981 (ACT
242) & RULES.
Answered by: Nurul Batrisyia Binti Mohd Radi (2022494174)
2.3.1 CLIENT’S ACCOUNT
Client’s Account is a faithful account that is required in every registered firm. It is a

separate bank account that is held by the registered firm for the sole purpose of holding and
managing a client’s monies or funds. Maintaining a client’s account is necessary in any
registered firm as the registered firms act as a stakeholder on behalf of their clients.
2.3.2 USE OF CLIENT’S ACCOUNT
2.3.2.1 HOLD AND RECEIVE THE CLIENT’S MONEY
Firstly, the client's account is used to hold and receive the client's money. All the client's
money will be deposited into the client's account, which prevents it from being mixed with the
firm's money. Only the client's money is allowed to enter the client's account and apart from
the client's money, it is prohibited to be deposited in the account as stated in Rule 52. For
example, the deposit gained from a property sale for the client goes directly into a special
account dedicated to the client which being separated from the firm’s own funds. The earnest
money deposit is kept safe in the client's account until it is spent on transaction-related
expenses or refunded to the client.
2.3.2.2 MAKE AUTHORIZED PAYMENTS
Secondly, the use of the client's account is to make authorized payments. There are
several conditions that allow the money in the client's account to be withdrawn, among which
are for any payments to or on behalf of the client, reimbursement of expenses incurred on
behalf of the client and more as mentioned in Rule 53. For example, a registered estate agent
rightfully withdraws the commission and fees earned from a successfully closed property deal
on behalf of the client.
2.3.2.3 HOLD CLIENT’S MONEY IN TRUST
Thirdly, the use of the client's account is to hold client money in trust. The registered
firm must hold the client's money on trust for the client and not use the money arbitrarily for
any other purposes. For example, the money deposited into the client's account must be used
for authorizing purposes as stated in the Act, and the money cannot be used for other
30
purposes such as payment related to the firm on its own or for unauthorized purposes such
as pay for the firm’s expenses and others.
2.3.3 IMPORTANCE OF CLIENT’S ACCOUNT
2.3.3.1 FOR TRANSPARENCY AND ACCOUNTABILITY
Moreover, the importance of a client’s account lies in its potential to promote

transparency and accountability. Client's accounts facilitate transparency and accountability
by providing a transparent record of financial transactions. It is also necessary to maintain
comprehensive documentation for every transaction involving client funds, allow for
continuous monitoring of client money and facilitate auditing and verification of the firm's
financial procedures. As stipulated in Rule 58, it is a requirement for all registered firms to
maintain comprehensive books and records that accurately document all financial
transactions, including the monies received, held or paid. It shows that the client’s account is
transparent and prevents fraud or other things. For example, a real estate agent receives a
payment with a commission fee from a purchaser upon the successful completion of a property
transaction. The commission payment is documented by the estate agent in the client account,
accompanied by a comprehensive analysis of the commission calculation to the client for easy
tracking later.
2.3.3.2 GAIN TRUST AND CONFIDENCE AMONG CLIENTS
Another importance of a client’s account is to gain trust and confidence among clients
within the real estate industry. When clients perceive that their monies are managed with
openness, accountability, and in strict adherence to ethical standards, it fosters a sense of
trust in the integrity of the registered firm. For example, the commission that is gained after
the sale of property is always deposited into the client’s account, and any future withdrawals
are carefully recorded for authorized purposes, such as the fees or expenditures that can be
reimbursed. Thus, this transparent handling of financial transactions provides clients with a
clear and accountable overview, reinforcing their confidence that their monies are being
managed responsibly. Hence, it will contribute to gaining trust and confidence among clients
as they feel assured that their financial is being handled with the professionalism as well as
maintaining a positive relationship with the clients, and eventually contributing to the firm's
positive reputation within the industry.
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2.3.3.3 SAFEGUARD FOR THE CLIENT’S MONEY
Finally, the importance of a client’s account lies in its role as a safeguard for the client’s
monies. A client’s account acts as a protective barrier, guaranteeing the security and
dedicated utilization of client money solely for their intended objectives within the context of a
real estate transaction. The client's account additionally guarantees the safeguarding of
monies given by clients, preventing any potential misuse or unauthorized access. For
instance, a registered estate agent successfully sells a property on behalf of a client. The
earned commission and related fees are withdrawn only from the client's account, ensuring a
clear separation of client monies from the firm’s funds. This practice serves to mitigate the
potential for misappropriation, ensuring that the funds belonging to the client are exclusively
allocated for authorized activities, such as the registered estate agent earned fees or
reimbursable expenses that arise from the sale of the property.
In conclusion, a client’s account plays a crucial role in promoting ethical and

transparent financial practices among registered firms operating in the real estate industry. It
serves as a protective measure, providing assurance to clients regarding the security of their
monies, their exclusive usage for intended purposes, and safeguarding against potential
occasions of misuse or unauthorized entry.
32
2.4 THE DIFFERENCE BETWEEN THE FOLLOWING:
Answered by: Nur Aqilah Binti Mohamad Hidayat (2022800462)
2.4.1 REGISTERED APPRAISER AND REGISTERED VALUER
2.4.1.1 SUMMARIZE DIFFERENCES
Registered Appraiser (RA) Items Registered Valuer (RV)

Before 1981 Title Established 1981 and until now
Sections 19 and 20 Section Applicable Sections 19 and 21

Restricted to a specific scope Scope of Work Broader scope of work
of work
Limit practice to a particular Restrictions of No limit to any state and value
state and value Work
2.4.1.2 EXPLANATION OF DIFFERENCES
The phrases "Appraiser" and "Valuer" are commonly used to describe professionals in
the real estate industry who have expertise in property valuation as mentioned in Section 19.
Therefore, Section 20 of the Valuers, Appraisers, Estate Agents, and Property Managers Act
1981 (Act 242) lists appraisers, whereas Section 21 lists valuers. While the term "Valuer" was
first published in 1981 and is still in use today with various amendments, the term "Appraiser"
dates to the colonial era and was published before the year 1981.
A Registered Appraiser (RA) and a Registered Valuer (RV) are different in that an RA
is limited to a particular type of work and, according to Section 20, is subject to certain rules
125 and 126 that must be adhered to in their professional conduct. They are required to abide
by regulations set up by the Board of Valuers, Appraisers, Estate Agents, and Property
Managers (BOVAEAP), including limitations on the scope of practice and prohibitions on
certain capital value amounts. The State or States in which RA operated at the time of its
Board registration are the only states in which they have permission to function, as specified
in the ninth schedule. Regarding the capital value restriction, it depends upon the RA's year
of experience in conducting a specific value of cases. The restriction by RA value is as follows:
33
Year of 1- 2 3–5 6 – 10 11 – 15 15 and
Experience above
Value (RM) 500,000 2,000,000 5,000,000 10,000,000 Unlimited
RV enables greater broad areas of job flexibility than RA does. The reason for this is
that an RV can have a wider range of practice. According to Sections 19 (a) and (b), the valuer
can practice and value all lands, buildings, and all interests therein, including trade stocks,
plants, machinery, equipment, trees, crops, furnishings, fittings, and so on. RV is also capable
of doing any kind of valuation that calls for project management, court cases, a hearing, and
other approaches. Rule 17 specifies that both professions must pay multiple costs, one of
which is a one-time processing fee. It is necessary for RA to pay RM50, and RV to pay RM75.
Rules 20 and 20A provide that the initial registration fee for an RA is RM75, and for an RV, it
is RM150. The costs are required to proceed with the following procedures and are based on
the person's job description.
In conclusion, delivering professional services in property valuation, registered

appraisers (RA) and registered valuers (RV) have significant roles in the real estate sector.
Their responsibilities and areas of practice are very different. RV has a greater range of
practice and can conduct valuations for a wider variety of properties, whilst RA are limited to
a certain work and have constraints on the value of properties they can assess. Compared to
RA, RV often attract greater costs and have stricter registration requirements. The demands
of the client will determine whether an RA or RV is best. An RA might be adequate for less
complex valuation tasks involving properties with lesser values. On the other hand, an RV
would be a better option for properties with larger values or for complex valuations.
34
2.4.2 PROBATIONARY VALUER AND REGISTERED VALUER
Probationary Valuer (PV) Items Registered Valuer (RV)

Section 17A Section Applicable Section 19
Not yet fully registered Registration Status Fully registered
Limited practice Scope of Practice Practice independently
Must have practical experience Requirement to

and be registered as a Become Must complete 4 exams
probationary valuer
Form AI Form of Form A
Application
RM50 Processing Fee RM75
RM100 Registration Fee RM150
A person who wishes to become a registered valuer is known as a "Probationary

Valuer (PV)," and someone who completes a PV procedure successfully and obtains
registration is known as a "Registered Valuer (RV)." According to Valuers, Appraisers, Estate
Agents, and Property Managers Act 1981 (Act 242), Section 17A (1), the PV must apply to the
Board to join and enter his name. In addition to that, Section 19 mentions that an RV is a
person who has been issued with an Authority to Practice (ATP) by the Board.
However, PV is not yet completely registered with the Board as they are in the training
period. Therefore, they are still subject to one of the Board's provisions, which is that PV must
operate under the supervision of any RV within the company they are employed. For RV, due
to their greater range of services for valuation purposes, RV is completely registered and able
to perform all professional activities on their own. This is since an individual must apply as a
PV and then fulfill the requirements before they can wish to become an RV.
Next, as stated in Sections 18 (2) and (3), each profession has certain qualifications to
become the PV and RV. A person who wants to become a PV has two opportunities to do so:
either directly into the field or through gaining work experience. To be eligible for direct entry,
an individual must have graduated with a bachelor's degree from an accredited university
abroad, from a local university, or from the Royal Institute of Chartered Surveyors (RICS).
35
Obtaining work experience is another way to apply to be a PV, however, there is a catch to
apply, one must pass the Royal Institution Surveyor Malaysia (RISM) exams, which are
equivalent to the direct final or final exam for a bachelor's degree. Nevertheless, in both cases,
the individual wishing to apply for the PV must, in accordance with Rule 33, pass every exam,
including the first, intermediate, and final/direct exams.
In addition to the differences between the requirements to become PV and RV, A

person who wishes to become an RV must pass all four exams listed in Rule 33, including the
first examination, intermediate examination, final/direct final examination, and finally, the Test
of Professional Competence (TPC) exam. These requirements differ from those of a PV or
RV. The most important test for a person to pass is the TPC exam. The reason for this is that
TPC will be carried out during the PV period and pass all formats. The PV must complete five
formats of the TPC, including two years of professional experience, submitting a work diary
and logbook, submitting records of experience, submitting two practical tasks, and securing a
professional interview, according to the Rules and Guidelines to the TPC for Registration for
Valuers (yellow book).
Based on Rule 17 in the Valuers, Appraisers, Estate Agents, and Property Managers
Act 1981 (Act 242), mentions that every person who is desirous of being any professional such
as a registered valuer, estate agent, probationary valuer, or probationary estate agent, must
apply to the Registrar under Section 15, according to the forms that are required to be apply.
However, the individual wishing to apply as a PV must register using Form AI, and the
individual wishing to apply as an RV must register using Form A. As a result, there must be
costs associated with both registering and processing the procedure. According to the third
schedule, the registration fee that PV has to pay is RM100 and RV is RM150, based on Rules
20 and 20A. For processing fees based on Rule 17, PV must pay RM50 while RV must pay
RM75.
In conclusion, people undergoing training to become fully-fledged Registered Valuers

(RV) are known as Probationary Valuers (PV). PV works under the direction and control of RV
at their employing organizations throughout this training phase. Interestingly, PV does not yet
meet all the requirements for RV registration, indicating a transitional phase during which they
are honing their craft and accumulating real-world experience under the guidance of more
seasoned professionals. Registered Valuers (RV), on the other hand, are completely
recognized by the Board after completing the registration process successfully, giving them
the freedom to conduct any professional valuation tasks on their own. This obvious difference
in their status underlines how the path from a probationary valuer to a registered valuer is
36
progressive, emphasizing the value of experience and assistance in the formation of qualified
valuation experts in the field.
2.4.3 BROKER, REAL ESTATE NEGOTIATOR, AND REGISTERED ESTATE AGENT
Item Broker Real Estate Registered Estate

Negotiator (REN) Agent (REA)
Registration Not registered Must be registered Must be registered
Status under BOARD under BOARD
Supervision No supervision Have supervision No supervision
under REA
Qualification No specific Must have certificate Must attain exams
qualification and have 2 years of
professional
experience
Capability to Not capable Not capable Capable
Open Firm
Brokers, Real Estate Negotiators (REN), and Registered Estate Agents (REA) are the
backbone of the real estate industry, providing invaluable guidance and expertise to buyers
and sellers in the fast-moving market. These experts are essential in helping clients navigate
the complexities of real estate transactions and achieve their goals.
Firstly, the broker is not registered with any company or board, in contrast to the other
three designations in this industry. The reason for this is that brokers typically identify their
property listings on their own and then illegally market them. REN and REA, on the other hand,
are legally permitted to operate and are registered with the Board. The difference between the
two is that although REA is fully registered based on Section 22B using Form B under Rule
17, REN is not.
Second, since a broker operates on their own and is not legally constrained by any
regulations, they do not require supervision from any corporation, REN, or REA. Then, in
accordance with Section 22C (2) (d), REN is expected to carry out its practice under the
supervision of any REA in any company that it works for, as it has typically been employed by
the REA. Although REA is fully bound by the Board's provisions and can practice
independently without the oversight of other REA.
37
Thirdly, because each professional title has a varied rank, so do their qualifications.
Although there are no requirements to become a broker, an individual must certainly
understand the housing industry. But they are not given any special instructions from the
Board; they just pick up information and skills on their own. However, to become an REN, an
individual must possess the required authorization that permits them to engage in estate
agency practice. The person is required to attend the two-day seminars to learn the
fundamentals of estate agency as well as the relevant laws, Acts, and industry standards.
They will be able to obtain the Negotiator Certification Course (NCC) by doing the program.
After that, the procedure will carry on while REN's employer applies the REN tag issued by
the Board.
Additionally, as it is the highest rank, being a REA is the hardest to achieve. The
Valuers, Appraisers, Estate Agents, and Property Managers Act 1981 (Act 242) stipulates in
Section 22D (2) that a candidate must have completed any relevant courses and have two
years of work experience. Then, to become an REA, a person must first apply for and register
as a Probationary Estate Agent (PEA) under Section 22E using Form BI, after which they must
complete the three exams. According to Rule 33A, the exams include Part 1, Part 2, and Test
of Professional Competence (TPC) and two years of practical experience.
Furthermore, the ability for each of these three to start their own business varies along
with their qualifications. It is noticeable that the brokers lack the necessary legal qualifications
and Board recognition to establish their own agency, as agencies are subject to strict legal
and regulatory requirements. Like REA, REN lacks the full qualification from the Board to open
its agencies, hence it is unable to do so. Nonetheless, REN has the same opening potential
as REA. Therefore, REA may apply to the Registrar using Form N to form their own firm as a
sole proprietorship, partnership, or body corporate in accordance with Section 23 (1A) of Rule
25B.
In conclusion, the three titles above differ greatly in a few crucial areas even though
they are related to the same profession. Their comprehensive understanding of industry
trends, legal rules, and negotiation methods enables them to effectively represent their clients'
interests in representation. They also play a major role in the buying and selling of real estate
and serve as the cornerstone of the intricate process involved in real estate transactions.
38
2.5 THE IMPORTANCE OF PROFESSIONAL INDEMNITY INSURANCE FOR
EACH REGISTERED VALUATION FIRM IN MALAYSIA.
Answered By: Khairul Aizad Bin Abdul Halim (2022699956)
Professional Indemnity Insurance (PII) is a critical safety for Malaysian licensed

valuation firms, protecting them from the financial implications of professional negligence,
errors, or omissions that may occur during their valuation services. This insurance provides
as a financial safety net, ensuring that valuation firms may continue to operate and satisfy their
duties without experiencing considerable financial pressure as a result of prospective litigation
or claims. According to the interview we had with Sr Anjaniman Bin Abu Kassim, IPC Sdn Bhd
registered Professional Indemnity Insurance (PII) for each of their 3 entities which are IPC
Property Consultants Sdn Bhd, IPC Property Management Sdn Bhd, and IPC Realty Sdn Bhd.
One of the importance of Professional Indemnity Insurance (PII) is financial and legal
protection. PII protects valuation firms, its employees and clients from financial consequences
resulting from negligence or errors in their professional services. This coverage includes legal
fees, compensation payments, expenses and settlements for negligence claims. For example,
imagine that a property is unintentionally undervalued by a valuation firm, resulting in large
losses for the customer when the property is sold. The customer has the option to file a lawsuit
to hold the valuation firm and the valuer accountable for the deficiency. Without PII, the firm
may face financial ruin and possibly closure if it had to pay all of the associated legal fees,
expenses, and settlement demands.
Other than that, the role of PII is for protecting reputation and client trust. PII displays
a valuation firm's dedication to maintaining professional standards and protecting the interests
of its clients. It increases client trust and credibility, boosting the firm's reputation and goodwill.
PII enhances the firm's reputation and credibility by proving its commitment to professional
standards and ethical practices. It shows clients and others that the firm is accountable for its
activities and takes its professional commitments seriously. PII instills trust in clients by
guaranteeing them that their interests will be protected in the event of any professional
blunders. This self-assurance generates stronger client relationships, which leads to more
business prospects and long-term growth.
Furthermore, is compliance with regulations. PII is a legal requirement for registered

valuation firms in Malaysia and it is compulsory for every registered valuation firm. The
Malaysian Board of Valuers, Appraisers, and Estate Agents (BOVAEA) requires all valuation
firms to retain PII coverage in order to safeguard their clients and the valuation profession's
39
integrity. As a condition of their registration, all registered valuation businesses must have a
Professional Indemnity Insurance (PII). This criterion is outlined in the BOVAEP Guidelines
for Firm Registration. Failure to meet this criterion may result in the firm's registration being
cancelled or revoked. It is a compulsory requirement from the Board, and it has to be renewed
every year. Without PII, valuation firms in Malaysia do not have Authority to Practice (ATP) to
carry out their professional practices and services. PII certificate is also important in renewing
the Authority of Practice (ATP) as a registered valuation firm to avoid the firm’s license from
being revoked.
PII covers a wide range of losses arising from professional negligence. Examples of
losses that are covered by Professional Indemnity Insurance (PII) are as below:
• Financial losses incurred by clients due to inaccurate or negligent valuations. Losses

made when a client purchases or sells a property based on an incorrect valuation
provided by the valuation business are included as claimable loss.
• Legal fees and expenses incurred as a result of professional negligence claims. PII
coverage includes the costs of legal defence, settlements, and damages incurred as
a result of a professional negligence claim brought against the valuation firm.
• Losses resulting from misrepresentation or failure to disclose important information.
PII protects clients against damages suffered as a result of the firm's
misrepresentation of property details, failure to reveal significant factors impacting the
property value, or any other type of misleading information provided.
• Losses resulting from unauthorised or fraudulent conduct by workers of valuation
firms. PII coverage includes losses incurred by clients as a result of the firm's
employees' dishonest or fraudulent activities in respect to valuation services.
• Losses from loss of documents and data. Loss of documents and data can be
considered a type of error or negligence. If a valuation firm misplaces or destroys
important documents, such as property records or market research data, it may result
in erroneous or incomplete valuation reports. Client financial losses caused by such
errors may be covered under PII coverage.
As a conclusion, Professional Indemnity Insurance (PII) is a must-have asset for

Malaysian licensed valuation firms. It provides comprehensive financial protection, protects
their reputation, and assures regulatory compliance, allowing them to operate confidently and
focus on providing great valuation services to their clients.
40
2.6 TYPES OF MISCONDUCT AND ETHICS OF REGISTERED VALUERS AND
APPRAISERS ACCORDING TO PART IX, RULES (ACT 242)
Answered by: Aina Fasiha Binti Hashim (2022626662)
According to Part V, Act 242, registered valuers, and appraisers are registered persons
with the authority to practice conducting valuation and appraisal services in Malaysia. Both
registered valuers and appraisers play significant roles in providing accurate and impartial
property valuation assessments. Their registration with the Board under Act 242 ensures they
abide by professional ethics and possess the necessary educational qualifications and
expertise to undertake valuation and appraisal services in Malaysia.
Aligns with Part IX of the Rules outlined in Act 242, registered valuers and appraisers
in Malaysia are held to strict professional conduct and ethics standards. The subsequent
section carefully outlines different forms of misbehaviours and ethics to be observed by these
professionals in their work. Integrity, accuracy, and ethical behaviour are critical issues in this
area, being closely related to the reliability and trustworthiness of property valuation and
appraisal.
2.6.1 CONDUCTING PROPERTY VALUATIONS AS AN ESTATE AGENT
According to Act 242, registered valuers and appraisers who can also engage in
estate agency are prohibited from conducting property valuations. The act outlines
distinctive responsibilities and professional functions within the real estate field, especially
distinguishing between estate agency services and the valuation or appraisal of properties.
Therefore, individuals registered as valuers and appraisers are mandated to refrain from
carrying out valuations while acting as estate agents. For instance, imagine that a registered
valuer or appraiser also works as an estate agent who represents a seller in a real estate
transaction. If they value the said property in the same transaction, the role of being an estate
agent might influence the valuation process. This might prompt the valuer to inflate the prices
of these properties to obtain a high selling price, hence reducing the truthfulness and
impartiality of the valuation exercise.
Furthermore, Act 242 indicates that if a registered valuer or an appraiser of the

registered company has functioned as an estate agent for a vendor in a transaction, no other
valuer or an appraiser from the same registered company shall participate in the valuation. On
top of that, employing another valuer or appraiser from the same registered firm to conduct
the valuation after one of them acted as an estate agent creates room for conflict of interest
or bias, leading to a biased outcome. Thus, Act 242 strives to maintain ethical standards by
prohibiting any other valuer or appraiser from the registered firm from evaluating the property
41
once one from the firm is assigned the role of an estate agent in the same transaction within
the Malaysian real estate market.
This restriction exists to preserve integrity, fairness, and professionalism during

property transactions to avoid conflicts of interest and bias. The act seeks to maintain the
separation between valuation practices and estate agency businesses to preserve the
authenticity, impartiality, and integrity associated with the practice of registered valuer and
appraiser.
2.6.2 CONFLICT OF INTEREST DISCLOSURE
A crucial ethical issue stipulated in Act 242 is that a registered valuer or appraiser
must disclose the personal interest they would possibly have in the transaction and
any existing relation with his/her client to avoid conflict of interest. Therefore, this
directive needs a valuer or an appraiser to disclose any personal interest in an organisation
that may influence the services rendered to the clients. Such disclosure is essential because
the client should know about any possible conflict situations which may affect the
independence of the assessor’s opinion.
For example, it must be disclosed to the client, among others, if the registered valuer
or appraiser has a financial stake or business relation with such parties. This disclosure
obligation aims to ensure clients know all the necessary details to make informed choices.
This will also help build an honest and ethical market atmosphere among valuers. Finally, it
provides professionalism, among other things, of which registered valuers and appraisers of
Malaysia are expected to uphold ethics.
Moreover, if a registered valuer or an appraiser offers property management services,

Act 242 requires full disclosure and openness about anything associated with the customer.
This means that when providing valuation or appraisal services about property management,
the valuer or appraiser must not conceal anything from the client which may be relevant for
decision-making by, or affect the understanding of, such client about the particular property
being managed.
For example, this is a matter of revealing facts like repairs matters, economic
questions, tenancy agreements, leasing deals, conflict of interests, and any other vital details
which may affect the client’s interest in this property. In this way, the valuer or appraiser
assures that their dealings with the client are transparent, promoting transparency to ensure
confidence.
After that, a registered valuer or appraiser is not allowed to do the same when taking
over the property management for the client, and Act 242 provides that such valuer or
42
appraiser must have no relationships with the contractors or interests in any of the contracts
involved. The policy provides for free and fair dealing to increase public trust. Therefore, since
the valuer or appraiser has this obligation to tell the client about the personal connections and
financial stake he might have with the contractor of the contract, he needs to be honest
enough. Additionally, seeking and obtaining express written consent from the client before
processing such agreements is necessary. For example, a registered valuer or appraiser who
also works as a property manager hired by an investor owning a commercial building must
engage another contractor to do some renovations on the premises of the building. Here, the
property manager enjoys an excellent personal relationship with a firm undertaking renovation.
According to Act 242, property managers should inform clients about these
connections before employing them. Furthermore, if the property manager gains financially by
awarding the contract to a particular contractor, it should also be disclosed. However, when
revealing this relationship with possible financial interests to the client, the property manager
should first get the client's written consent. Afterwards, he could continue awarding the
renovation contract to this contractor. To conclude, this rule demand ensures that a customer
knows about possible conflicts of interest or bias in a company and how these may affect their
decision on receiving a tender. By following this rule, the registered valuer or appraiser
preserves ethical standards, maintains impartiality, and defends the client's interests in
property management interactions, building a relationship based on trust, integrity, and
transparency.
2.6.3 PROFESSIONAL FEES
Under Act 242, whereas Rule 48 typically provides for the prescale of fee scales as in
the Seventh Schedule for registered valuers and appraisers’ professional services, they can
accept a higher fee but only with written approval by the Board. Flexibility is provided
under this provision, allowing for deviation from the usual fee scale when the type and level of
difficulty involved exceeds that of normal professional work.
For example, take a case in which a registered valuer is assigned to appraise a special
property with complex features that call for intensive searching, advanced valuation methods,
or extra proficiency over and above normal valuation work. The valuer may request approval
from the board for additional charges and explain why this is reasonable.
Moreover, this is possible only after seeking written approval from the Board, ensuring
transparency and accountability in deviating from the prescribed fee schedule. This provision
allows registered valuers or appraisers to tackle complex assignments that are in accordance
with regulations and provide fair payment for extraordinary professional services.
43
2.6.4 ACCURACY OF STATEMENT
According to Act 242, provided above, it is unlawful for a registered valuer or an

appraiser to make such a statement that has been stated above or contains lies and
inaccuracy as well as misstatement, omission or concealment of essential facts. The
rule provides registered valuers and appraisers with a high degree of accuracy, honesty, and
integrity. For instance, a case where a valuer deliberately values the worth of a property that
has been damaged structurally and then does not include such information in the valuation
report while claiming to have made the concerned property more attractive to buyers.
On top of that, this intentional omission may mislead potential purchasers or investors
who rely on the valuation report, resulting in an incorrect perception of the property's actual
condition and value. The valuer would break the regulation by making a deceptive and
inaccurate statement, neglecting to disclose important facts that could affect the property's
value. As a result, this regulation emphasises the importance of complete transparency and
includes all material facts in statements or reports prepared by registered valuers or
appraisers. It ensures accuracy and reliability in professional assessments while maintaining
ethical standards and protecting clients' and stakeholders' interests.
2.6.5 DILIGENCE ON VALUATION REPORTS
According to Act 242, it forms part of the fundamental professional standard that
registered valuers or appraisers should not make hasty responses whenever requested
to give their valuations or views about real estate matters. This emphasises that they
must be meticulous when considering the outcomes of their professional evaluations. For
example, imagine a valuer being asked for a fast estimate of a property’s worth with no
thorough survey or scrutiny involved. This is where the process of value haste can come into
being since offering valuation figures before conducting due diligence could result in mistakes
and confusion that could be detrimental to clients’ and stakeholders’ critical decisions. For this
reason, registered valuers and appraisers must devote enough time, skills, and effort to
produce an objective judgment with due thoughtfulness and without hastiness.
Moreover, a registered valuer or appraiser’s opinion should only result from extensive
investigation and deep consideration. This often provides a basis for careful research with
prudent reflection before giving professional advice. For example, if a valuer is contacted by
a client who wishes to know if it is worth investing in a specific piece of land. Here, the valuer
should never rush to present an opinion without carefully looking at market trends, property
condition, location, risks involved, investments expected, etc. The valuer also provides
informed opinion as they gather comprehensive information on such issues and analyse the
44
facts to educate their client accordingly and assist them in making sound decisions about their
business venture.
Furthermore, when a registered valuer or appraiser requires additional external

information through consultancy services of lawyers, engineers, architects, and other expert
professionals to compile a property report or valuation report, the valuer should clearly state
that certain conditions and additional materials are taken from external reports. For example,
if a registered valuer or appraiser is evaluating a property and needs information from a
structural engineer about the structural strength of the building. Registered valuer or appraiser
should include any information in the structural report by the engineer that could affect the
property’s value or usefulness. Therefore, a valuer includes the contingent conditions or
details obtained from external professional advice to ensure that the client or stakeholders
understand what exactly formed the basis on which they carried the property valuation.
Lastly, the Board sets out the standards, directives, circulars, and guidelines for all
valuation reports that registered valuers or appraisers prepare. Industry regulations have set
out the need for valuation reports to comply with professional standards, thus highlighting their
importance. For example, the board may give directives addressing various ways of issuing
valuation reports by outlining some set methodologies, ethical considerations, reporting
format, or any other procedural guidelines valuers and appraisers should follow. These rules
ensure uniformity, high levels of quality and integrity in the valuation industry. The Act requires
valuers and appraisers to conduct their valuations per the set standards and guidelines
formulated by the Board, ensuring consistency and a dependable valuation procedure.
Understanding and adhering to these rules not only safeguard the reputation of the
professionals but also maintain the credibility and integrity of the valuation and appraisal
profession.
45
2.7 FOUR (4) MATTERS FORBIDDEN FOR ADVERTISEMENT FOR ANY
REGISTERED VALUER/REGISTERED VALUATION FIRM PRACTICES.
Answered by: Muhammad Umair Hakim Bin Khalil (2022876212)
Registered valuers, appraisers, estate agents and property managers are subject to
strict laws regarding marketing methods in accordance with the Valuers, Appraisers, and
Estate Agents Act 1981 (Act 242) of Malaysia. The objective of these regulations is to
guarantee ethical behaviour, accuracy, and transparency in the valuation sector.
2.7.1 AN INACCURATE OR MISLEADING STATEMENT OF FACT
Strict rules pertaining to the accuracy and reliability of the information provided in
advertisements are imposed on Registered Valuers and Valuation Firms under Valuers,
Appraisers, Estate Agent, and Property Managers Act 1981 (Act 242). Advertisement that
contains false or deceptive assertions of fact are strictly forbidden under this rule, which is a
significant restriction.
Act 242 forbids Registered Valuers and Valuation Firms from providing false or
deceptive information in their advertising. This covers any assertion or remark that cannot be
verified by reliable facts or data. For example, it would be deceptive to advertise a certain
percentage of success in real estate sales without providing supporting data or to overstate
the number of years of expertise. An advertising that makes a claim without providing enough
proof to back it up could be used as an example.
2.7.2 AN EXPLICIT SOLICITATION OF INSTRUCTIONS
A direct or explicit request made in an advertising to hire a valuation firm or a registered

valuer without considering the specific needs, circumstances, or preferences of the client is
referred to as an explicit solicitation of instructions.
Act 242 prohibits Valuation Firms and Registered Valuers from directly requesting
business or instructions through their marketing. When a potential customer is asked directly
to engage their services without taking into account their unique requirements or
circumstances, this is referred to as an explicit solicitation. This is because it encourages
prospective clients to get in touch without considering their specific needs. These sorts of
marketing, by their direct nature, urge fast action from potential clients without taking into
consideration the character of their property, circumstance, or individual demands. They
neglect how crucial it is to understand the needs of the client and adjust the services as
necessary.
46
Explicit solicitation in advertising for registered valuers or valuation firms is
inappropriate because it ignores the specific needs and circumstances of every person. Such
advertisements might put excessive pressure on potential clients to make immediate decisions
without offering them enough thought or assessing if they meet their needs.
Act 242 attempts to make sure that Registered Valuers and Valuation Firms offer their
services in a way that is moral, competent, and considerate to the needs of every specific
client. Valuation firms and registered valuers can maintain their integrity and professionalism
by not explicitly soliciting business through their advertising. This allows them to concentrate
on offering services that truly meet the specific requirements of each client, rather than rushing
to close deals at the expense of their preferences.
2.7.3 AN EXPLICIT COMPARISON BETWEEN THE SERVICE OFFERED BY A FIRM

WITH THAT OF OTHER FIRMS
Act 242 restricts Registered Valuers or Valuation Firms from comparing their marketing
directly to those of competing businesses. Unfair competition may result from such explicit
comparisons that diminish or degrade the offerings of other businesses. To say, for example,
"Our valuations are superior to any other firms in accuracy and reliability," without providing
proof to support the assertion, would be a violation of this rules and regulations. It would be
legal to promote unique offerings rather than openly criticizing competitors.
Valuation Firms and Registered Valuers can set themselves apart in the market without
unfairly competing with one another or affecting the reputations of other companies by
emphasizing distinctive offerings, such as specialized valuation methodologies, in-depth
knowledge of particular property types, or creative approaches to client satisfaction. The
objective of the prohibition on explicit comparisons is to preserve the fairness, professionalism,
and integrity of the valuation industry's marketing strategies. Instead of creating a competitive
climate that thrives off criticizing or condemning other companies, it promotes a competitive
environment based on the advantages and unique characteristics each of the businesses.
47
2.7.4 SELF- LAUDATORY STATEMENTS
Act 242 prohibits self-laudatory or unnecessarily bragging language in marketing by

Registered Valuers and Valuation Firms. This involves bragging or making exaggerated
claims about the company's abilities or accomplishments without providing sufficient proof to
back it up. The rule would be broken, for example, by referring to someone as "the most trusted
valuers in the market" or "the absolute best in property valuation" without providing impartial
proof. Instead of excessive self-praise, advertisements should emphasize knowledge.
Verifiable data, such as the valuation methodology employed, years of expertise,

successful case studies, industry connections, or any acknowledged awards or certifications
obtained, should be the main emphasis of advertisements. By providing evidence of
knowledge and proficiency, this strategy promotes credibility and confidence with potential
clients.
Valuation Firms and Registered Valuers may successfully express their strengths and
skills without using deceptive language or inflated claims by prioritizing expertise,
professionalism, and accurate information above excessive self-praise.
48
3.0 REFERENCES
What is the difference between a Real Estate Agent (REA) and Real Estate Negotiator
(REN)? - iproperty.com.my. Retrieved November 26, 2023, from
https://www.iproperty.com.my/guides/what-is-the-difference-between-property-agents-and-
real-estate-negotiators-12010.
Valuers, Appraisers, Estate Agents, And Property Managers Act 1981. (2018).
Board of Valuers, Appraisers, Estate Agents, and Property Managers. Retrieved from
https://lppeh.gov.my/WP2016/board-members/
Clients Account – Malaysian Institute of Estate Agents (MIEA). Retrieved August 24, 2016,
from https://www.miea.com.my/faq/clients-account
Institut Penilaian Negara, Jabatan Penilaian Dan Perkhidmatan Harta. Retrieved November
27, from https://inspen.gov.my/
IPC Island Property Consultant Sdn Bhd (IPC). Retrieved November 27, from
https://www.ipckl.com/
LinkedIn
49
4.0 APPENDICES
Figure 1 Form A Act 242 Figure 2 Form A Act 242
Figure 3 Form A Act 242 Figure 4 Form A1 Act 242
50
Figure 5 Form A1 Act 242 Figure 6 Form A1 Act 242
Figure 7 Form B Act 242 Figure 8 Form B Act 242
51
Figure 9 Form B Act 242 Figure 10 Form N Act 242
Figure 11 Form N Act 242 Figure 12 Form N Act 242
52

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BACHELOR OF ESTATE MANAGEMENT

COLLEGE OF BUILT ENVIRONMENT

UNIVERSITI TEKNOLOGI MARA

GROUP ASSIGNMENT FOLDER

COURSE CODE : RES 614

Name of Group Members Matric No.

NUR AQILAH BINTI MOHAMAD HIDAYAT 2022800462

NURUL BATRISYIA BINTI MOHD RADI 2022494174

AINA FASIHA BINTI HASHIM 2022626662

KHAIRUL AIZAD BIN ABDUL HALIM 2022699956

MUHAMMAD UMAIR HAKIM BIN KHALIL 2022876212

Name of Group Leader:

Group's Leader Signature: Date: 29th November 2023

In performing our assignment, we would like to express a great appreciation to all

1.1 BACKGROUND OF REGISTERED VALUER .............................................................. 1

2.1.1 ROLE OF INSPEN IN PROVIDING TRAINING ........................................................ 4

2.3.1 CLIENT’S ACCOUNT ............................................................................................. 30

2.4.1 REGISTERED APPRAISER AND REGISTERED VALUER .................................... 33

2.6 TYPES OF MISCONDUCT AND ETHICS OF REGISTERED VALUERS AND

2.6.1 CONDUCTING PROPERTY VALUATIONS AS AN ESTATE AGENT .................... 41

2.7.1 AN INACCURATE OR MISLEADING STATEMENT OF FACT ............................... 46

4.0 APPENDICES ............................................................................................................... 50

1.1 BACKGROUND OF REGISTERED VALUER

Figure 2 Positions held by Sr Anjaniman

Twelve prominent financial institutions in Malaysia, namely Maybank, RHB Bank

2.1 THE ROLE OF INSPEN IN PROVIDING TRAINING AND RESEARCH FOR

INSPEN, commonly known as the National Institute of Valuation (Institut Penilaian

2.1.1 ROLE OF INSPEN IN PROVIDING TRAINING

INSPEN provides comprehensive training programs and courses for prospective

1. Managing all annual training program

4. Assure that the average accomplishment of lecturers is at least 80%.

a) Property Evaluation & Services

Assessment training focuses on precise property valuation, the ability to undertake

b) Data Administration and Research

The goal of this programme is to improve the management skills of department

e) Induction Programmes (General and Special)

f) The Technical Cooperation Programme of Malaysia (MTCP)

• Attachment Programme in Valuation Practise

National Institute of Valuation (Institut Penilaian Negara) or better known as INSPEN, is

(i) Product Consulting and Development Center

The primary responsibilities of this programme include publishing research findings,

(ii) National Coordinator for Real Estate Research (NAPREC) Centre

Chart 1 The Composition of Board’s Members.

In conclusion, this composition consisting of public service representatives and

Current Occupation • Deputy Director General of Valuation and Property

Other Positions • Director General of Valuation and Property Services

Work Experience • Members of JPPH Segamat as Senior Director

Current Occupation • Registrar in Board of Valuers, Appraisers, Estate Agents

Other Positions • Advocate & Solicitor

Education • Master of Law – UiTM

Work Experience • 9 years of experience in the legal community and running a

Current Occupation • Deputy Chief Director of Assessment and Property

Current Occupation • Deputy Director General of Valuation and Property

Current Occupation • Director, Strategic Investment Privatization Division of

Other Position • Registered Valuer and a member of BOVAEP

Current Occupation • Director of National Property Information Centre (NAPIC),

Other Positions • Registered valuer and a member of BOVAEP (V0803,

Education • Master of Science (Estate Management) - UM

Current Occupation • Deputy Director (Property Inventory), National Property

Other Positions • Registered Valuer

Current Occupation • Registered Valuer at Intra Harta Consultants Sdn Bhd

Education • Diploma in Estate Management – UiTM

• 3 years as Registered Valuer & Estate Agent, MRISM,

• 7 years as Registered Valuer & Estate Agent, MRISM –