Standard 2 2014

2.1.0 INTRODUCTION

2.1.1 Real Estate Negotiators are salespersons engaged by the estate agents in the listing and marketing of properties for sale/purchase/rent/lease. They shall be under the direct supervision of the estate agents and shall be engaged either on a 'contract of service' or on a 'contract for service'.

2.1.2 Since Negotiators are persons who come into contract with the public in many estate agency transactions the manner in which they are directed and supervised by the estate agent is of concern to the Board.

2.1.3 Generally the Board requires the estate agents to ensure that negotiators assist in the conduct of the practice of estate agency and are in full compliance with the provisions of the Act, Rules, Standards, directives, circulars, guidelines and decisions of the Board.

2.1.4 In any disciplinary action against an estate agent a plea in mitigation founded on the claim that the estate agent was unaware of the wrongful actions by the negotiator will not be accepted and neither will it be a defense.

2.2.0 STATEMENTS OF STANDARD

2.2.1 Real Estate Negotiators REN(s) are salespersons who are employed/engaged by the estate agent's Firm to list and market properties, negotiate the terms, assist purchasers to procure the property, the tenant to rent or lease a property and conclude the transaction.

2.2.2 The estate agent shall employ/engage REN(s) who are trained and have the competency & skills to represent the firm professionally.

2.2.3 The estate agent shall ensure that the REN(s) are employed/engaged on a full-time basis and they shall work for only one firm.

2.2.4 Estate agents shall ensure that all REN(s) employed/engaged by them work under their direction and supervision.

2.2.5 Estate agents shall ensure that all REN(s) furnish to the prospective parties all information pertaining to the property including the probable length of the transaction and should avoid anything that may tend to mislead a party not represented by them.

2.2.6 Estate agents shall ensure that REN(s) do not when offering a property for sale, purchase, let or rent, quote a price different from that agreed upon with the Client.

2.2.7 The Estate agent shall ensure that REN(s) work for only one estate agency firm at any one time, and usually under a contractual or employment agreement.

2.2.8 Whilst REN(s) may perform some or all of the necessary negotiations in an estate agency transaction the estate agent remains responsible to the Client for carrying out the estate agency instructions.

2.2.9 An estate agent shall provide adequate training to his REN(s) so as to ensure the display of positive characteristics by his REN(s) in dealing with the public.

2.2.10 Estate agents shall ensure that a REN negotiating on behalf of the firm shall be adequately acquainted with all material facts of the property in discussion.

2.2.11 The commission payable to REN(s) shall not exceed the maximum prescribed by the Board.

2.2.12 A REN who has any interest, direct or indirect, in any property that is listed with the Firm must immediately disclose his interest in the property to the Firm and the Client.

2.2.13 An Estate Agent is not allowed to employ/engage more that the number of REN(s) as prescribed by the Board.

2.2.14 The estate agent shall maintain a register of all his REN(s) with details including the date of employment/engagement, mobile phone number(s), and the date of resignation or termination. The Board shall be notified of any changes in the status within 2 weeks month from the date of such occurrence.

2.2.15 The estate agent shall ensure that his real estate negotiators do not sign any contractually binding documents on behalf of the firm including the letter of offer, letter of engagement, letter of co-agency arrangement and flyers.

2.2.16 The estate agent shall ensure that all REN(s) employed/engaged by him must be registered with the Board via the Firm and the Board shall issue the REN with a name tag which must be worn at all times during the course of doing business.

2.2.17 The estate agent shall ensure that any REN(s) terminated by the Firm or wishing to leave the Firm shall surrender his tag to the firm and the Board shall be notified in writing of such termination/resignation immediately.

2.2.18 An estate agent who engages any REN(s) who has left his previous company must apply afresh to the Board with the prescribed fees.

2.3.19 The estate agent shall ensure that REN(s) do not place signages on properties that are not listed with the Firm, or in any undesirable places.

2.2.20 The estate agent shall ensure that REN(s) do not misrepresent on the nature of their engagement of the properties listed including advertising as exclusive agent(s) on signages and other marketing materials.

2.3.0 EXPLANATIONS TO THE STANDARD

2.3.1 The Standards make it clear that at all times REN(s) shall be under the direct control and supervision of the Estate Agent.

2.3.2 These amended Standard supersedes the Board previous Circulars namely Circular 10/95, Circular 11/96 and Circular 2/98.

2.3.3 Circular 1/2013 - Mandatory Salary Requirements.

Ref:

Verbatim from Standard 2, MEAS 2014.