MALAYSIAN ESTATE AGENCY STANDARDS
10.1.1 The role of the estate agent includes tenancy administration which involves the effective management of landlord tenant relationship and the associated management functions to ensure that a property is able to provide tenants with a level of customer orientated services and satisfaction enabling landlords to attract and retain tenants.
10.1.2 The estate agent’s role in tenancy administration may involve aspects of tenant liaison, handing and taking over of premises, billings, collection and disbursement of rents, coordination between contractors undertaking works in the premises, payment of utilities, property taxes and services charges, and monitoring reinstatement of premises upon termination or expiry of the tenancy or lease.
10.1.3 This landlord tenant relationship management role is not for entire developments, complexes or buildings with multiple tenants or common area management.
10.2.0 STATEMENTS OF STANDARD
10.2.1 The estate agent shall sign and date the written details of the terms of engagement and business arrangement including procedure and responsibility for specific tasks.
10.2.2 Depending on the scope of work, the estate agent shall implement relevant processes for the collection of rents, service charges or any other charges, car park charges and/or other relevant charges and shall keep proper accounts of all monies collected.
10.2.3 Standard 9 of this Malaysian Estate Agency Standard shall apply to the administration of monies on behalf of the client.
10.2.4 The estate agent shall ensure proper documentation and records are kept on the client’s property and inventories. He must ensure that these items are kept in good condition, with the exception of fair wear and tear.
10.2.5 The estate agent shall have a good understanding of the covenants that are entered into between the landlord/lessor and tenant/lessee in the tenancy/lease agreement, and be well versed with legal provisions relating to landlord and tenant tenancy/lease matters as well as those under the Contracts Act 1950 [Act 136] and any other relevant laws.
10.2.6 The estate agent shall ensure that the covenants expressed or implied, are observed by the tenant or the lessee, under the tenancy/lease agreement throughout the duration of the tenancy/lease. He shall diligently monitor and enforce the covenants without fear or favour at all times.
10.2.7 When the estate agent scope include the delivery of vacant possession and handing/taking over of premises, the estate agent shall ensure and properly coordinate the same in accordance to the agreed tenancy terms which may include full reinstatement of the property to its original condition.
10.2.8 The estate agent shall ensure that all dealings and transactions are ethical and transparent with his client’s best interests protected at all times.
10.2.9 The estate agent should ensure that a service level agreement is made and shall incorporate the following fiduciary obligations to the client without any modification to the wording below:
- In the discharge of estate agent’s fiduciary duties and obligations to the client, the estate agent shall not receive money or commission or gift or donation for the estate agent’s own personal benefit from any vendor, supplier, contractor or service provider in order to ensure that the client’s interest is not compromised by the estate agent’s own personal interest.
- In the discharge of the estate agent’s fiduciary duties and obligations to the client, the estate agent shall be prohibited from receiving any form of commission or money or kickback directly or indirectly from the contracts with or without the awareness of his client in order to protect the client’s interest and the integrity and professionalism of the estate agent.
10.3.1 The estate agent plays an important role as the link between the landlord/lessor and the tenant/lessee. Whilst ensuring that the tenant/lessee has quiet enjoyment of the premises, the estate agent must also ensure that the tenant/lessees briefed clearly on by-laws and house rules and his obligations under the tenancy/lease agreement.
10.3.2 The estate agent may be required to collect rents in addition to service charges or charges. He must ensure that all monies are properly collected and accounted for in the appropriate account.