BOVAEP REN NCC key terms

The statutory board created under Act 242 that regulates valuers, appraisers, estate agents and property managers in Malaysia, registers practitioners and firms, issues guidelines and hears disciplinary complaints.

The Valuers, Appraisers, Estate Agents and Property Managers Act 1981 - the main law on registration, practice, accounts and discipline for estate agency firms and negotiators in Malaysia.

A person registered with BOVAEP and attached to a registered estate agency firm, authorised to carry out estate agency work such as marketing property and negotiating deals under that firm's supervision.

A numbered tag issued by BOVAEP showing a negotiator's name, registration number and firm, which must be produced when dealing with the public so clients can verify registration.

The training hours a registered negotiator must complete each year to keep registration current and knowledge up to date with changes in law, practice and the market.

An invitation for others to make an offer, such as a property advertisement or a displayed asking price; it cannot be accepted so as to create a contract by itself.

A definite promise to be bound on stated terms, made with the intention that it becomes a contract once the other party accepts it; in property it usually concerns price and conditions.

A false statement of fact made during negotiations that persuades another party to contract; the innocent party may rescind the contract or claim damages depending on the type of misstatement.

A relationship in which one person, the agent, is authorised to act for another, the principal, so as to affect the principal's legal relations with third parties such as buyers or landlords.

The agent's duty to put the principal's interests first, act loyally, disclose all material information, avoid conflicts of interest and never make secret profits from the transaction.

The statute governing land tenure, registration of titles and dealings in land in Peninsular Malaysia, covering transfers, charges, leases, caveats and the Torrens registration system.

A land registration system where the register is conclusive evidence of title, so a registered proprietor's ownership is generally indefeasible and protected against unregistered claims, subject to statutory exceptions.

The document of title handed to the registered proprietor as evidence of ownership of land or a strata parcel; it records the title particulars entered in the land registry.

A registered security interest over land given to a lender to secure a loan; the borrower keeps ownership while the property may be sold by the chargee if the borrower defaults.

A notice lodged at the land registry by someone claiming an interest in the land, which stops the registrar from registering inconsistent dealings until it is removed, lapses or is set aside by court.

An endorsement on a title such as a Malay reservation, agricultural condition or lot restriction that limits how the land may be transferred, leased or used, often requiring state authority approval.

The written contract for a property sale, setting out parties, price, deposits, payment stages, conditions, completion and remedies; standard forms are used for subsale and developer sales.

A short agreement where the seller grants a buyer the exclusive right to buy within a set period for a deposit, usually conditional on the buyer securing finance.

Money paid by a buyer to show serious commitment and secure the property, commonly two to three per cent of price; refundability depends on the agreed terms and any failed condition.

The prescribed National Land Code instrument used to transfer registered title from seller to buyer, executed by both parties and presented for registration with the supporting documents.

A tax on instruments such as sale and purchase agreements, transfers and loan agreements, charged mainly on transaction value and paid so the document can be registered and used as evidence.

A tax on gains from disposing of real property, based on the difference between disposal and acquisition price, with rates depending on the holding period and the seller's category.

The estimated amount for which a property should exchange on the valuation date between a willing buyer and willing seller in an arm's-length transaction after proper marketing.

A valuation approach that estimates value from recent sales and asking prices of similar properties, adjusted for differences in location, size, condition, tenure and timing.

A valuation approach that converts a property's expected net income into value by capitalising it at a yield or multiplier taken from comparable investment sales.

The use of a property that is legally permissible, physically possible, financially feasible and yields the highest value; it frames valuations and development advice.

A contract letting premises to a tenant for a fixed term at a stated rent, recording rent, deposits, repairs, permitted use, termination and renewal terms.

Money paid by a tenant at the start of a tenancy to cover possible default or damage, typically two to three months' rent, refundable at the end subject to the agreement.

The regular sum owners pay to the management corporation or joint management body for maintaining common property, separate from the sinking fund collected for future major works.

The written appointment of an estate agency firm by an owner, stating the type of listing, asking price, commission, period of engagement and duties of each party.

A listing giving one firm sole rights to market a property for a stated period, often with commission still payable if the owner or another party produces the buyer during that time.

The minimum amount a seller is willing to receive after deducting agency commission and other costs, as distinct from the higher gross price advertised to buyers.

The law governing collection, use and disclosure of personal data in commercial activity, requiring notice, consent and secure handling; it shapes how negotiators build and use prospect lists.

The Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, which criminalises laundering and requires estate agents and other reporting institutions to screen clients and report suspicions.

The steps a reporting institution takes to identify and verify a client, understand the transaction and source of funds, and assess risk before and during the deal.

A confidential report to Bank Negara Malaysia's financial intelligence unit when there are reasonable grounds to suspect that funds or property involve unlawful activity or terrorism financing.

The natural person who ultimately owns or controls a property, company or trust, even where a nominee or company holds legal title; identifying them is a key anti-money-laundering step.

A situation where an agent's own interest, or a duty owed to another client, could improperly affect the service or advice given; it must be disclosed and managed or the engagement declined.