The Valuers, Appraisers and Estate Agents Board has a scale of fees that registered agents can charge for their professional services.

For sales and purchases of land and buildings, they are entitled to charge 2.75% on the first RM500,000 and 2% on the remainder.

With chattels (including plants and machineries), it is 10% of the proceeds. This applies to any sale or purchase by way of private treaty, tender or any other mode of disposal or acquisition.

For sales and marketing projects, the fees are whatever the estate agent and his client to. The scale also does not apply for the sale of foreign properties transacted in Malaysia or for the sale of Malaysian properties in foreign countries.

Real Estate Agents can earn a fee for lettings of properties. For tenancies up to three years, the fee is equivalent to 1.25 months gross rental; three to four years, 1.5 months; four to five years or longer without the option for renewal, 1.75 months; over five years with renewal options, 1.75 months plus 0.25 months rental for every additional year.

For tenancies of less than a year, the fee may be calculated on a pro rata basis. This scale does not apply to services offices and apartments or other premises of a similar nature.

If rental rates are reviewed, estate agents are entitled to 50% of the fees chargeable under the lettings.

Agents may also make claims for the cost of printing, plans, copies of documents, lithography, travel (if the distance from the agent's office to the property exceeds 40km) and other expenses. They can also claim for media advertisements, signboards, brochures and other promotional material. However, they must first obtain their client's approval for these additional expenses.

Any real estate firm that has a turnover exceeding RM150,000 per annum is subjected by law to collect a 5% service tax from its clients. The estate agent is required to collect this on behalf of the Customs and Excise Department.

Many estate agents, by the nature of their practice, hold money belonging to other people who are stakeholders. It is therefore appropriate to have standards for an estate agent's accounts and the handling of his client's money.

Estate agents should maintain separate client accounts so that the monies entrusted to registered persons are paid into it. The transactions are to be properly recorded in the accounts maintained by the registered estate agent and properly monitored.

The Board views the fiduciary duties of the estate agent very seriously. Breaches are dealt with severely. There are strict rules on how a client's account is to be operated. As estate agency firm is also required by law to have professional indemnity insurance.

Professional indemnity insurance protects professionals (estate agents, accountants, solicitors, architects, doctors and so forth) against the legal liability to compensate third parties who sustain injury, loss or damage due to their professional negligence. The insured is defined as the firm, practice or company made up of its partners and qualified professional staff, including clerical and secretarial staff.

The policy protects the insured against any claims for damages that may be made against him for breach of professional duty, by reasons of negligent act, error or omission in his professional capacity. In short, the insurance company covers the payment up to the sum insured.

In efforts to raise the standard of the profession and isolate illegal brokers, the Malaysian Institute of Estate Agents (MIEA) has begun certifying real estate negotiators.

To obtain certification, negotiators have to undergo a formal course. Those who pass this are given the designation "Certified Real Estate Negotiator" and allowed to use the acronym CREN after their names.

Negotiators who successfully complete the course would also be given identity cards bearing their agencies' names and registration numbers, as well as badges with the MIEA logo.

By providing proper training and certification, MIEA hopes to raise the standards of the practice and ultimately, safeguard the interests of the public.

Property queen Renesial Leong has this to say about estate agents: "Real estate agents are jewels to investors. These are the people who will help us source for the right properties. They are professionals in their area of strength and can give invaluable feedback in the area they are familiar with.

"They can tell us transacted prices, supply and demand, some can even tell the transaction history of a property. This is especially meaningful to busy investors like myself as their services help me leverage on time and allow me to better manage my time, and make faster and better decisions.

"As the middle person in a transaction, real estate agents help cushion occasionally unpleasant encounters with vendors. They know how to convey and negotiate the terms of the offer. You do not have to meet head-on with property owners and this gives you time to think and strategise.

"They are the A-Z of my investments. It works for the vendor's side, too. I can engage their services to rent and sell my properties.

"In every trade, you will always have bad apples. Having said that, my experience with estate agents has been most wonderful. Select the right agents. Know how to work with them and it will be a rewarding experience," she said.

For more information on Estate Agents and Certified Real Estate Negotiators, please contact MIEA Secretariat