BOVAEP Estate Agent TPC flashcards
BOVAEP Estate Agent TPC · Build recall with a focused review session.
32 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Indefeasibility of title
- Under the Torrens system in the National Land Code 1965, registration confers on the registered proprietor a title that is indefeasible and cannot be defeated except by statutory exceptions such as fraud or misrepresentation.
- Charge under NLC
- The National Land Code security instrument over land; on default the chargee applies to court for an order for sale rather than exercising automatic foreclosure as under a mortgage.
- Private caveat
- A statutory notice lodged under section 323 of the National Land Code to protect an unregistered interest in land; it lapses after six years unless extended by the Registrar or court.
- Restriction in interest
- A condition endorsed on a title, such as Malay Reserve status or a requirement for State Authority consent to transfer, that binds the registered proprietor and limits dealings.
- Capitalisation formula
- Value equals Net Operating Income divided by the capitalisation rate; a lower cap rate produces a higher indicated value for the same income stream.
- Gross rent multiplier
- Sale price divided by gross annual rent; multiplied by the subject property's gross rent to give an indicative value in the comparison approach.
- Market value definition
- The estimated amount for which an asset should exchange on the valuation date between a willing buyer and willing seller in an arm's-length transaction after proper marketing.
- Cost approach formula
- Value equals replacement cost new minus accrued depreciation plus land value; depreciation covers physical deterioration, functional obsolescence, and economic obsolescence.
- Sinking fund
- Under the Strata Management Act 2013, a fund maintained by the management corporation for major repairs and capital works, funded by proprietor contributions based on share units.
- Share units
- Allocated in the strata plan by area and use; they determine each proprietor's voting rights and contribution to maintenance charges and the sinking fund.
- Planned preventive maintenance
- Scheduled inspection and servicing of building systems at manufacturer or condition-based intervals to extend service life and reduce unexpected failures.
- Initial yield
- Net annual income divided by purchase price or capital value; it measures the income return on capital and is compared with market benchmarks.
- Net present value
- Future cash flows discounted at the investor's required rate of return; a positive NPV indicates the investment adds value at that discount rate.
- Internal rate of return
- The discount rate at which net present value equals zero; compared with the investor's hurdle rate to accept or reject a project.
- Property cycle phases
- Recovery, expansion, oversupply, and recession; vacancy rates and rental growth are leading indicators of the current phase.
- Planning permission
- Required under the Town and Country Planning Act 1976 for development, including building, engineering, mining, and material change of use of land.
- Environmental Impact Assessment
- Required under the Environmental Quality Act 1974 for prescribed activities; approval must be obtained before planning permission is granted for those activities.
- Residual land value
- Gross development value minus total development cost, including construction, professional fees, finance, and developer's profit; used in development feasibility.
- Act 242
- The Valuers, Appraisers, Estate Agents and Property Consultants Act 1981, which establishes BOVAEP and regulates registration and professional conduct.
- Practising certificate
- Issued annually by the Board, distinct from registration; it authorises practice and is subject to CPD compliance and payment of prescribed fees.
- Professional indemnity insurance
- A condition of practice covering claims arising from negligent advice or acts; the minimum cover and terms are prescribed by the Board.
- Client account
- A designated account for holding client money separate from the firm's operating funds; commingling is prohibited and is a disciplinary offence.
- Dual agency
- Acting for both buyer and seller in the same transaction; requires full informed written consent from both parties, otherwise it is a conflict of interest.
- Customer due diligence
- Under AMLA 2001, identifying the client and beneficial owner, verifying identity, and understanding the purpose of the transaction before acting.
- Suspicious transaction report
- Filed with the Financial Intelligence and Enforcement Department of Bank Negara Malaysia when a transaction is suspected of money laundering; tipping off the client is prohibited.
- Continuing professional development
- Annual accumulation of CPD points relevant to the practitioner's scope of practice, documented for audit and required for renewal of the practising certificate.
- Fixtures test
- Degree and purpose of annexation determine whether an item is a fixture; an item substantially affixed for the better use of the land passes with the land.
- Lease registration threshold
- A lease exceeding three years must be registered under the National Land Code; a tenancy of three years or less may be created without registration.
- Strata Management Act 2013
- Governs subdivided buildings, strata titles, management corporations, by-laws, and the maintenance account and sinking fund in Peninsular Malaysia.
- Contingent valuation fee
- A fee that depends on the value reported; prohibited because it compromises the valuer's independence and objectivity.
- BOVAEP
- The Board of Valuers, Appraisers, Estate Agents and Property Consultants established under Act 242; it registers practitioners and enforces the code of conduct.
- Development plan
- Structure plan and local plan prepared under the Town and Country Planning Act 1976; they set land-use zoning to which proposed development must conform.