BOVAEP REN NCC flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

BOVAEP

The Board of Valuers, Appraisers, Estate Agents and Property Managers, the statutory body created by Act 242 that registers and disciplines valuers, appraisers, estate agents, property managers and negotiators in Peninsular Malaysia.

REN registration requirement

A person may act as a negotiator only when registered with the Board through a registered estate agency firm and issued a valid REN tag bearing the registration number.

Act 242

The Valuers, Appraisers, Estate Agents and Property Managers Act 1981, which makes it an offence to practise estate agency, valuation or property management without registration.

Sale commission cap

Under the prescribed fee schedule, estate agency commission on a completed sale is capped at three per cent of the sale price, and commission on a letting at about one month's rent.

Negotiator's permitted scope

A registered negotiator may market and negotiate property for the firm's clients but cannot practise independently, sign agency agreements as principal, or hold client funds personally.

Elements of a contract

Offer, acceptance, consideration, intention to create legal relations and capacity; the Contracts Act 1950 governs these requirements, with writing needed only where a statute imposes it.

Counter-offer effect

A counter-offer terminates the original offer, so the original offeree can no longer accept it; acceptance must instead be of the counter-offer as made.

Agency by ratification

A principal may retrospectively adopt an unauthorised act of an agent, provided the principal had capacity when the act was done and adopts the whole transaction.

Agent's fiduciary duty

An agent must act in the principal's interest, obey lawful instructions, disclose material information, avoid secret profit and account for money received; breach allows rescission or damages.

Indefeasibility of title

Under section 340 of the National Land Code, registration confers title that cannot be set aside except for fraud, misrepresentation, void instruments, or registration contrary to law.

Private caveat

A person with a registrable interest may lodge a private caveat to protect that interest; the caveat blocks inconsistent dealings until withdrawn, lapsed or removed by court order.

Tenancy exempt from registration

A tenancy not exceeding three years is exempt from registration under section 213(3) of the National Land Code, though the tenancy agreement itself must still be stamped.

Land category control

Land is classified as agriculture, building or industry, and use must comply with that category and with any express condition or restriction in interest endorsed on the title.

Memorandum of transfer

Form 14A under the National Land Code is the instrument used to register the passing of title from vendor to purchaser at the relevant land registry office.

Stamp duty on transfer

Duty is charged on the higher of price or market value at one per cent on the first RM100,000, two per cent on the next RM400,000 and three per cent on the balance.

Stamping deadline

An instrument executed in Malaysia must be stamped within thirty days of execution; if executed abroad, within thirty days after it is first received in Malaysia.

RPGT holding period

Real property gains tax scales down as the holding period lengthens, with disposals within the first three years attracting the highest rate of thirty per cent.

Investment method formula

Capital value equals net annual income divided by the capitalisation rate, so a lower capitalisation rate produces a higher value for the same income stream.

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.

Residual development method

Gross development value less construction cost, professional fees, finance charges and developer's profit yields the residual land value, often expressed as a percentage of GDV.

Highest and best use

The use of a site that is legally permissible, physically possible, financially feasible and maximally productive, thereby producing the highest value for the property.

Sinking fund contribution

Under the Strata Management Act 2013, a management corporation must credit at least ten per cent of collected maintenance charges to a sinking fund for major repairs.

Strata Management Tribunal limit

The Tribunal hears strata and maintenance disputes and may award up to RM250,000, while claims exceeding that amount must be commenced in the courts.

Quiet enjoyment covenant

A landlord's undertaking that the tenant may occupy and use the premises without unlawful interference by the landlord or by persons claiming under the landlord.

Tenancy stamp duty basis

Duty on a tenancy is computed on the annual rent at a rate per RM250 that rises with the term, the rate for terms up to one year being the lowest.

Exclusive agency listing

A listing appointing one firm as sole agent for a stated period, under which commission is payable to that firm even if the owner personally finds the buyer.

Open listing

A non-exclusive listing where the owner may appoint several agents and pays commission only to the agent who is the effective cause of the completed sale.

Advertising disclosure rule

Property advertisements must identify the estate agency firm and the registered negotiator's REN number, and must not contain false or misleading statements about the property.

Cash threshold report

Reporting institutions must file a cash threshold report with Bank Negara Malaysia for cash transactions of RM25,000 or more, including linked transactions that appear deliberately split.

Suspicious transaction report

An estate agency must report suspected money laundering or terrorism financing to Bank Negara Malaysia's Financial Intelligence and Enforcement Department promptly, without informing the client.

Tipping-off offence

Disclosing to a client or any third party that a suspicious transaction report has been made is itself a criminal offence under the anti-money laundering legislation.

Conflict of interest rule

A negotiator must not act for both buyer and seller, or accept hidden payments from either side, without full written disclosure and the informed consent of both parties.