In Malaysia, there are mainly two kinds of property professionals that can legally provide real estate services as authorised by the Board of Valuers, Appraisers and Estate Agents (BOVAEA or LPPEH). These are Real Estate Negotiators (REN) and Real Estate Agents (REA). But because the difference between the two is not common knowledge, we created this article to help you distinguish between them. Their key differences are enumerated in the table below.
Real Estate Negotiator (REN)
If you’re looking to purchase or rent a home in Malaysia, you will most likely engage a Real Estate Negotiator (REN) instead of a Real Estate Agent (REA). This is because there are more negotiators than agents.
RENs are technically the assistants of registered agents, but because they are not responsible for overseeing the operations of a real estate company, negotiators don’t need to undergo the complex and lengthy process undergone by registered agents.
Nonetheless, RENs need to obtain the necessary certification before they are permitted to practice the profession and provide property services. Each negotiator is required to undergo a two-day seminar known as the Negotiator’s Certification Course, through which they will learn the fundamentals of the trade as well as the related rules and the best industry practices.
Once you have completed and passed the Negotiator’s Certification Course, you will receive an attendance certificate. With this important document, a person can apply to be a real estate negotiator at a registered property company. After you are hired, the real estate firm can then apply for a REN identification card (ID) from the board.
The REN tag contains key information like your name, picture, issue number (REN XXXXX), NRIC number, your property firm’s name and the company’s registration number. Your clients can also scan the quick response (QR) code in the ID to authenticate your identity. This is a cool feature that distinguishes you from illegal property brokers and conmen.
The ID, which you need to wear at all times when conducting business, tells other people that you are a REN certified by BOVAEA who can lawfully offer properties for sale or rent, as well as look for a home on behalf of a client. Only with this ID can you represent property sellers, buyers, landlords and tenants. In addition, please note that negotiators can only work full time for a single real estate firm.
Real Estate Agent (REA)
On the other hand, REAs can work on their own and single-handedly provide real estate services like selling or renting out properties. They can also apply for a license from BOVAEA so that they can run their own property company. As mentioned above, each real estate agency can hire up to 50 RENs for each licensed agent, who are often the owners of a property company or in the top management.
Due to the important role they play and their heavy responsibilities, the board requires licensed agents to have certain educational standards qualifications. For instance, you must have the Malaysian Certificate of Education (SPM), passing at least five subjects, of which three are credited courses. One of the credited subjects is either Commerce, Science, Accounting, or Mathematics. Applicants who do not hold an SPM certificate can be considered, as long as they have received similar or higher eligibility acknowledged by the Malaysian Qualifications Agency and Public Service Department (JPA).
Aside from that, you also need to obtain a Diploma in Estate Agency. To get this you need to pass six comprehensive exams, and another six after you’ve passed the first set. Typically, it takes around two years to study and pass all 12 exams.
Thereafter, you need to work for two years as a probationary real estate agent for a registered property firm, which you can look up at BOVAEA’s website. Please keep in mind that you need to keep a detailed log of your work activities.
Upon completion of your two-year stint with a property firm, it is time to take the Test of Professional Competence. This is a thorough interview where you need to explain and demonstrate your comprehensive knowledge of the real estate industry as well as the experience you’ve gained working as a probationary agent for two years. If you pass the interview, you’ll finally get the much-coveted Diploma in Estate Agency.
With the diploma in hand, you are now an official REA and your name will be listed on BOVAEA’s roster. You will also be issued with an ID card containing your picture, agent’s name, company name and E number (E XXXX). Similar to a negotiator’s tag, the ID will also contain a QR code, but the colour of an agent’s ID is blue compared to red for RENs. At this point, you can already offer real estate services, but you still need to get a license from the board to operate your own property agency.
Conclusion
As discussed above, it’s much easier to become a Real Estate Negotiator (REN) than a Real Estate Agent (REA). But despite the longer time frame involved and more stringent requirements to become an agent, this is usually the dream goal of many negotiators, as a licensed agent is entitled to a higher position and remuneration.
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(Written by G. Zizan, 25th February 2020)
