The Board of Valuers, Appraisers, Estate Agents, and Property Managers (BOVAEP), Malaysia’s regulatory body for the real estate sector, warned that there is an increase in cases of people impersonating registered real estate agents (REA) and real estate negotiators (REN).
Pamela Marie Jerome Anthony, the registrar of BOVAEP, said these fraudsters employ sophisticated schemes posing as REAs and RENs to manipulate buyers or tenants into transferring sums of money as deposits or down payments.
Once the funds are transferred, the scammers disappear, leaving victims financially devastated and without the promised property.
Four years ago, BOVAEP reported tracking 100,000 real estate agents operating without licences, highlighting a persistent threat to homebuyers and tenants. There were also 50 real estate fraud cases reported every month, because of illegal real estate brokers operating in Malaysia.
To combat these fraudulent activities and to protect the public, BOVAEP urged tenants and future owners to follow three important steps – verify credentials, inspect properties, and use a secure payment method.
“The public are urged to verify the authenticity of REAs and RENs through BOVAEP’s website (lppeh.gov.my). The mobile numbers advertised in any media must correspond with the listed phone numbers in the BOVAEP system,” said Anthony.
She also said that tenants or potential owners must insist on viewing the property before making any payment.
“Be wary of agents who refuse, or make excuses for not allowing physical inspections,” advised Anthony.
Crucially, it is important to use secure payment methods for transactions and avoid transferring large sums of money without proper documentation and confirmation.
“Wherever and whenever possible, always ensure payments are to registered real estate agencies or other legal stakeholders,” she said.
BOVAEP’s proactive measures aim to protect prospective tenants and property buyers from falling prey to fraudulent schemes and to promote a safer real estate environment in Malaysia.
Estate agency practices in Malaysia are governed by the Valuers, Appraisers, Estate Agents, and Property Managers Act 1981 (Act 242).
It dictates that real estate agents must be registered, while real estate negotiators must be certified by BOVAEP.
Legislative amendments to Act 242 (Part VIII, Section 30), state that any person who acts as an estate agent, whether the primary or principal object of his business is an estate agency, or impersonates a registered estate agent, is committing an offence, and is liable upon conviction, to a fine not exceeding RM300,000, or imprisonment for a term not exceeding three years, or both, and shall be liable to a further penalty of RM1,000 for each day during the continuance of such offence.
It also applies to any person who aids and abets in the commission of an offence under this Act.
