Real estate broker is real estate negotiators (REN). Then, there is unregistered and registered REN. The unregistered is who we are discussing right now – the illegal broker or negotiator.
As you know, the real estate buying and selling process can involve many parties such as owner, buyer, developer, lawyer developer, lawyer owner, lawyer buyer, land office, SUK, relatives, caveats, and others.
The registered real estate negotiators (REN) help their customers with real estate transactions and operations involving real property within a single or several states. The REN should comply with the LPPEH board’s code of ethics and professional standards of conduct.
Our Primary Concern with Unregistered Broker
Now, SubsaleSister.com’s primary concern with an unregistered broker is misrepresentation about some key aspects of a sale. This misrepresentation of details is due to the lack of knowledge, experience, and/or ethics. Thus, he/she could cause a scam, intentionally or unintentionally.
Thus, as a prospective buyer, you would want to give EXTRA attention. Hence, it is best to practice these 5 tips below to avoid being scammed in real estate transactions.
How to Avoid Illegal Real Estate Broker Scammer
1) Know your Real Estate Negotiator (REN) (if you have never known)
- Obtain the REN tag and check at LPPEH’s site to make sure it is valid.
- Obtain the REN’s business card and add the REN on Facebook or Follow them on FB Page. You should double-check when REN uses nicknames.
Note: Some agents have an extra real name (for religious purposes) that does not exist in IC.
- Get to know the REN’s office. Check in the Google map, Waze, and social media to ensure its existence.
2) Letter of Appointment
Make sure the REN/ Co agency partner has a Letter of Appointment from the owner. This letter shows that they are authorized to sell on the behalf of the owner.
Set of Rules if there is no Letter of Appointment.
- The REN cannot act on behalf of the owner to sell the house.
- The REN cannot advertise/cannot show the house.
- The REN cannot accept any deposit for the sale of a house.
Suffice to say that you are definitely facing a cowboy’s work.
The downsides of not having a Letter of Appointment are:
- Buyers are likely to be deceived by broker scammer.
- Deposit money is easy to lose.
- You could have bought a different house.
- The buying price is different than the selling price.
- Can be considered trespassing on the owner’s house without a letter of appointment.
3) Make these mandatory during the viewing session.
- As a buyer, you should see the location. Location3x! remains the old mantra in real estate.
- You as a buyer should overlook the condition of the house (minor/major problem).
- Make sure you see the Grant or Sales & Purchase agreement owner. Here is how they look like.
4) Fire these 2 sets of killer questions for your REN. (which is usually an illegal broker/scammer would have not known first).
- The property information – The size, land area, status (leasehold/freehold).
- The property value – The value of the current market price and which bank to specify.
5) Other things:
- Make sure there is black & white for each transaction and agreement between buyer/agent/owner.
- Make sure the REN provides stepwise information on the real estate buying and selling process according to your case.
- Broker scammer can also disguise himself/herself as Owner. So, make sure you are careful.
If everything is as above, you can breathe a sigh of relief that the REN is not a fraud illegal real estate broker, but an honest middleman.
Have confidence with Malaysian REN!
Be reminded that the buying and selling process requires tolerance and good cooperation with each other.
REN/registered agent functions as a middleman between the two parties and further. They help simplify the buying and selling process and they negotiate prices for you. They are also generous with useful tips for related situations that you are new to. They are also literally the runner of important documentation; such as runner for developer affairs, land office runner, loan, SNP, follow-up buyer/ owner/ lawyer, and others.
Simply said, REN can facilitate and save you in terms of your precious time, petrol, tolls, misunderstanding of lawyer terms, and so on.
Thus, use the services of Real Estate Negotiators (REN) with great confidence.