Restriction of Estate Agency Practice S.22C Q7

Discuss the restrictions of the practice of real estate agents in accordance to Section 22C of Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242).

(20 marks, 2019 Q7)

This question was WRONGLY ASKED in D02 Introduction to Law. This question should be under D08 Estate Agency Law.

Similar question was asked in

D08 2012 Q3

The amended VAEP Act 1981 (Act 242 - Amended) in S.22C (1) specified that:

No person shall unless he is a registered estate agent and has been issued with an authority to practice under section 16.

S.22C (2) specified otherwise that notwithstanding subsection (1) - which means despite subsection (1) which is restriction of estate agency practice, under certain conditions, special designated persons are allowed to carry out Estate Agency Practice.

This S.22C primarily stipulates that:-

(1) estate agency practice is a regulated profession and unless a person is issued the authority to practice, it is illegal under the law to carry out this vocation.

(2) that under specific conditions, a certain case can carry out estate agency practice.

"Estate Agency Practice" is specified under S.22B (1A) in the Act 242 as dealing with five (5) areas of work of an estate agent in property business. Below are the summary point form:-

  • (a) Selling of
  • (b) Purchase of
  • (c) Renting & looking for rent
  • (d) Making know
  • (e) Tenancy administration

Thus, S.22C (2) gave the exceptions that the below special situations, it is exempted from the law, and the designated persons are allowed to carry out estate agency practice:

  • (a) Owner himself
  • (b) Licensed auctioneer
  • (c) Holder of power of attorney
  • (d) Real Estate Negotiators who are engaged or employed to assist the registered estate agents (inserted in amendment 2017).

OTHER parts of S.22C are as below:

  • It specified that some of the names are restricted in usage
  • That publicity and display in media prints are restricted
  • That the jurisdiction of geographical area within and outside Malaysia
  • That a registered estate agent can recover fee due to him

S.22C (1) (a) (No person shall) practise or carry on business or take up employment under any name, style or title containing the words "Estate Agent", "House Agent", "Property Agent", "Land Agent", "House Broker" * or the equivalent thereto, in any language or bearing any other word whatsoever in any language which may reasonably be construed to imply that he is a registered estate agent or that he is engaged in estate agency practice or business;

*inserted "Real Estate Agency Consultant" in the 2017 amendment.

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

(b) display any signboard or poster, or use, distribute or circulate any card, letter, pamphlet, leaflet, notice or any form of advertisement, implying either directly or indirectly that he is a registered estate agent or that he is engaged in estate agency practice or business;

(ba) offer for sale, rent or lease or invite offers to purchase, rent or lease any land, building and any interest therein irrespective of whether such land, building and interest therein is located within Malaysia or outside Malaysia:

Provided that where foreign properties are to be marketed in Malaysia, such offer or invitation shall be made by or through an estate agent practising and residing in Malaysia on behalf of a principal or an estate agent practising or residing outside Malaysia;

(c) undertake any of the work specified in section 22B#; or

(d) be entitled to recover in any court any fees, commissions, charges or remuneration for any professional advice or services rendered as an estate agent.

Earlier post in D08 Estate Agency Law
Video on "Exception to EAP"

Leave a Reply