Real Estate Agency & Property Management

Real Estate Investment Appraisal & building surveying

Facility Management & Quantity Surveying

Project Management & Land Surveying

Property Auction & Designing Building

Real Property Gains Tax, Estate Duty, Stamp Duty, Land Acquisition

Land Acquisition, Government Housing Loan, Alienation of Land

Change In Category Of Land Use, Purchase / Sale

Purchase / Sale, Stamp Duty

Real Estate Agent (REA)

National Property Information Centre (NAPIC)

National Institute of Valuation (INSPEN)

BOVAEA (Malaysia Board of Valuers, Appraisers and Estate Agents Malaysia)

Malaysian Ministry of Finance

The Valuation and Property Service Department (JPPH)

National Institute of Valuation (INSPEN)

National Property Information Centre (NAPIC)

The Royal Institution of Surveyors Malaysia

proving and rejecting applications for registration

conducting examinations

holding disciplinary proceedings

regulating the professional conduct of Valuers, Appraisers, Estate Agents and Property Managers.

REA is registered with BOVAEA

REA is registered with JPPH

REA is registered with RISM

REA is registered with RICS

REA is registered with Ministry of Finance

REN less studying and less training compared to REAs, they also have to be tied with a registered real estate firm in order to work in the industry.

A real estate negotiator is to work under registered REAs.

A real estate negotiator is also registered with BOVAEA.

The main difference between a REN and REA is that a REA is registered with BOVAEA, while a REN is not, albeit this person is certified to practice.

Graduated in Real Estate Management.

Obtain 2 years of working experience under a registered valuer.

take the Professional Competency Test for Valuers.

Graduated in Land Administration.

also known as the Lembaga Penilai, Pentaksir, Ejen Harta Tanah & Pengurus Harta (LPPEH)

is the body tasked with regulating the Valuers, Appraisers, Estate Agents and Property Managers in Malaysia.

under the purview of Malaysia’s Ministry of Finance, with its operation governed by the Valuers, Appraisers, Estate Agents and Property Managers Act 1981.

Maintaining the Register of Valuers, Appraisers, Estate Agents, Property Managers, Probationary Valuers and Probationary Estate Agents (PEA) as well as firms of Valuers, Appraisers and Estate Agents.

The BOVAEA keeps two registers — one for Valuers/Property Managers, while the other is for Real Estate Agents (REA).

to collect, collate and disseminate information related to the property industry.

To provide accurate, comprehensive and timely information to government agencies and all other parties involved in the property industry

To publish periodical property publication.

To advice the government on property development in the country

To develop and maintain a national property stock warehouse

Professional membership of a professional body locally and one that is recognized internationally.

Stepping stone to other international qualifications e.g. Chartered Surveyor qualification from the RICS.

Opportunity to develop leadership skills through involvement in council, divisional committees, other committees and sub-committees.

Enhanced recognition by the public and clients when providing professional services.

government needs are addressed in the process of managing the property

Property valuation refers to government requirements.

To become a premier training, research and education centre in real estate.

a middleman between the buyer and the seller

to the land that someone owned, and any buildings or developments upon the said land

the right to sell or use the property.

a legal term to identify a royal grant of estate land

legal documents to describe, locate, and identify a plot of land or a building that is being transferred or sold.

including water,

including trees,

including minerals,

including buildings,

including bridges,

YES

N0

maintained

developer

privacy

Neighbourhood

Amenities

Economic Conditions

A badly performing economy or economic uncertainty reduces demand in the property market, which results in reduced house prices.

If you’re selling property in an area with a strong ethnic Chinese demographic for example, properties with the unlucky number 4 (its pronunciation sounds like ‘death’) could be considered less desirable.

Good access to large and iconic malls or substantial hypermarkets can make a property more attractive to potential homebuyers, and thus positively impact the value of a property.

Properties located within convenient travelling distance of public schools with good records benefit from increased demand, and thus increased valuations.

Most local agencies have vast powers to modify state statutes; consequently, laws vary between cities and counties and fluctuate to reflect the current political climate. 

The real estate market is a reflection of local economic conditions. When the economy is expanding, the quantity of new residential construction projects, as well as the number of real estate transactions increases.

Interest rates, or the portions of a loan charged by the lender on a mortgage, credit card, and other credit balances, typically use the federal funds rate as a benchmark. 

The geographical location of real estate comes with many variables, all of which play a key role in boosting or slashing property values. 

Proximity to public transportation and major highways

Availability of local amenities and recreational facilities

Quality of local schools and educational institutions

Assisting clients in property search and selection

Negotiating property deals on behalf of clients

Providing guidance on property valuation and market trends

Proximity to natural landscapes and scenic views

Accessibility to commercial centers and business districts

Availability of public parks and green spaces

A. The Collector of Estate Duty

B. Jabatan Penilaian dan Perkhidmatan Harta (JPPH)

C. The Ministry of Finance

D. The Attorney General's Office

A. JPPH ensures the compensation is aligned with current market value to protect public interest.

B. JPPH oversees the legal transfer of property ownership during acquisition.

C. JPPH authorizes the payment of compensation to affected landowners.

D. JPPH manages the acquisition process and negotiates with affected landowners.

A. To validate the legality of a property transaction.

B. To act as a form of tax revenue for the government on property transfers.

C. To determine the ownership of the property.

D. To establish market value for future taxation purposes.

A. Ensuring regular maintenance and safety of the building for residents.

B. Setting government regulations for tenant leases.

C. Determining property tax rates for the building.

D. Establishing ownership rights among tenants.

A. JPPH conducts property valuations to assist LHDN in assessing accurate stamp duty and tax liabilities.

B. JPPH collects property taxes on behalf of LHDN.

C. JPPH handles income tax assessments for properties under LHDN.

D. JPPH approves property transactions managed by LHDN.

A. Only the surface of the ground within a property boundary.

B. The surface, subsoil, airspace above, and all permanent fixtures attached to the ground.

C. Exclusively any buildings or structures constructed on a property.

D. Any body of water located on a property without including the surrounding land.

A. The highest price a property would sell for in any market condition.

B. The estimated amount a property should exchange for on the date of valuation between a willing buyer and a willing seller in an arm's length transaction.

C. The amount a property owner desires to receive regardless of market conditions

D. The lowest price a property can be sold for in a forced sale scenario.

Outgoings or “Operating Expenses” are the various expenses incurred by the Landlord to operate and maintain a commercial property.

Outgoings are the landlord’s reasonable expenses associated with the premises.

Such as common area cleaning, security, electricity, lifts and escalators, air conditioning, fire services, gardening, building repairs and maintenance, building insurance, council rates and taxes, to name a few.

a shared pot of funds prepared against future expenditure, such as large scale repairs or major works on a building.

value in the present of a sum of money, in contrast to a different value it will have in the future due to it being invested and compound at a certain rate

kept in a separate account to maintenance fees, and generally charged as a percentage of the overall service charges you pay.

is an important element in the time value of money, which forms the backbone of finance. There can be no such things as mortgages, auto loans, or credit cards without PV.

REAs have undergone widespread training and education. They need to pass 2 years of program and 2 years of practical’s.

RENs, on the contrary, complete a 2-day training program. They aren’t required to have as a whole lot of training as REAs.

Board of Valuers, Appraisers, Estate Agents and Property Managers frequently called the Board, oversees the registration and regulation of REAs and RENs.

MIEA represents the interests of REAs and RENs in Malaysia.

MIEA works with BOVAEA to uphold business standards and promote professional development.

These regulatory bodies are crucial for maintaining trust and integrity in the real estate market. They make certain that sellers operate in the regulation and offer first-class service to their customers.

They know a way to rate houses competitively and negotiate effectively.

Agents who specialize in certain areas or types of properties can offer an exact clear understanding.

Reading opinions and testimonials gives you an idea of the agent's popularity.

Integrity is critical for building trust and ensuring that your interests are prioritized.

Seldom informed at all stages of the process and be open to reply to your questions.

Malaysian citizen or Permanent Resident (PR) of Malaysia and having met the prescribed qualifications and experienced is entitled to register themselves with BOVAEA.

real estate brokers

Foreign real estate agents or developers

agents from countries such as Singapore, and Indonesia.

National Asset and Property Information Centre

National Property Information Centre

National Archive of Property Information Centre

National Analysis of Property Information Centre

A tax imposed by local authorities on annual rental income from real property.

A tax levied by the Inland Revenue Board (IRB) on chargeable gains arising from the disposal of real property, as provided under the Real Property Gains Tax Act 1976 (Act 169).

A tax charged on the gross disposal price of real property regardless of acquisition cost.

A tax imposed by the Ministry of Finance on the market value of real property held for investment.

Disposal price minus annual rental income

Acquisition price minus disposal price

Difference between the disposal price and acquisition price

Market value minus assessed value

Annual maintenance expenses incurred before acquisition

Cost incurred by the vendor in selling the asset

Penalties imposed by local authorities

Financing interest paid on the purchase loan

Market value is always equal to the price actually paid.

Market value reflects a forced sale situation.

Market value may differ from the price paid due to special circumstances affecting the transaction.

Market value is determined solely by the seller.

The personal financial needs of the seller

The sentimental value attached by the owner

Location, demand and supply, and property condition

The original construction cost

Market value assumes limited marketing time.

Market value reflects compulsion on both buyer and seller.

Market value assumes a reasonable exposure period in an open market, whereas forced sale value does not.

Market value is always lower than forced sale value.

The date of acquisition only

The date of disposal only

The date of valuation, reflecting market conditions on that date

Any date chosen by the valuer

To determine statutory market values for taxation purposes

To act as an intermediary between buyers and sellers of real property for a fee or commission

To approve property development applications

To impose taxes on real property transactions

The historical cost of a property

The assessed value for rating purposes

The likely market price achievable in an open market transaction

The replacement cost of the property

Inland Revenue Board (IRB)

Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP)

Valuation and Property Services Department (JPPH)

Ministry of Finance

Estate agents and valuers perform identical professional functions

Estate agents are authorised to provide formal valuation reports for statutory purposes

Estate agents mainly facilitate property transactions, while valuers determine market value for formal purposes

Estate agents determine property tax liabilities

Fixed by statute regardless of transaction value

Payable only by the buyer

Based on an agreed percentage of the transacted price

Determined by the Inland Revenue Board

To guarantee a specific selling price

To act in the best interest of the client and disclose material information

To manipulate market prices

To prioritise personal profit over client interest

The annual rental value of a property

Market value by interest rate

Annual net income by the capital value of RM1 per annum

Gross development cost by yield

The total amount accumulated at the end of an investment period

A fixed annual amount set aside to accumulate a specified sum in the future at a given interest rate

The annual rental income generated by a property

The interest earned on a lump sum investment

Determine the market value of a property

Replace a wasting asset or redeem capital at the end of its useful life

Calculate annual rental income

Estimate disposal price for taxation purposes

RM3,000

RM3,980

RM4,000

RM5,000

To directly sell properties on behalf of developers

To collect, analyse, and interpret data on market conditions, demand, supply, and pricing to support decision-making

To assess the structural integrity of buildings

To determine the statutory market value for RPGT purposes

Conducting structural inspections of properties

Monitoring and analysing trends in property prices, rental rates, and buyer preferences

Drafting legal contracts for property transactions

Certifying building compliance with planning regulations

Valuing properties for inheritance purposes

Conducting feasibility studies to determine the viability of new developments based on demand, competition, and market conditions

Approving development applications

Collecting property taxes for the government

By negotiating purchase prices directly with buyers

By providing insights into market trends, buyer behaviour, and competitive positioning to guide investment and pricing strategies

By performing building surveys and valuation reports

By imposing taxes on real estate transactions

Conducting structural surveys of buildings

Ensuring rental collection, tenant management, and property maintenance

Issuing RPGT assessments

Approving building development applications

Monthly rental collected

Increase in property value between purchase and sale

Bank interest on savings

Government tax refund

Higher risk investments always give lower returns

Lower risk investments always give higher returns

Higher risk investments usually require higher expected returns

Risk and return are unrelated

6%

6.5%

8%

8.5%

Guaranteed rent for life

Vacancy and difficulty finding tenants

No maintenance cost

Property price never changes

Capital gains

Rental yield and cash flow

Tax savings only

Speculation only

A sales brochure

Proof of ownership and rights over a specific parcel of land

Building plan approval

Tax receipt

Freehold – limited years; Leasehold – perpetual

Freehold – perpetual; Leasehold – limited duration

Both freehold and leasehold are limited to 60 years

Both freehold and leasehold are perpetual

Ownership is perpetual, subject to land laws and conditions

It always expires after 60 years

It cannot be transferred to heirs

It cannot be charged to a bank

Tourism

Education

Residential

Healthcare

Leasehold

Freehold

Malay Reserve

State land not yet alienated

Freehold

Leasehold

River reserve land

Mining land only

District Land Office

High Court

State Land Office / Land Registry (Registry Titles – H.S.(D))

Local authority (Municipal Council)

District Land Office as Land Office Titles (H.S.(M))

State Land Office

Valuation and Property Services Department

Health Department office

Geran Negeri – leasehold; Pajakan Negeri – freehold

Geran Mukim – leasehold; Pajakan Mukim – freehold

Geran Negeri & Geran Mukim – freehold; Pajakan Negeri & Pajakan Mukim – leasehold

All of the above are leasehold

H.S.(M)

H.S.(D)

GM

PM

H.S.(M)

H.S.(D)

PN

GN

Final freehold title at mukim level

Final leasehold title at state (registry) level, for a fixed term such as 60/99 years

Only a temporary title

Only for small agricultural land

Final freehold title recorded at the State Office

Final leasehold Strata title recorded at the State Land Office

Final leasehold title recorded at the State Land Office

Final freehold title recorded at the District Land Office at mukim level