The Malaysian Institute of Estate Agents (MIEA) is concerned that illegal real estate negotiators may quadruple, post-Covid-19, says its chief executive officer, K. Soma Sundram.
Illegals are getting bolder in their illegal brokering activities and the numbers are growing, he said.
Sundram said there is a concern that many of those who have lost jobs during Covid-19 and the Movement Control Order (MCO) will venture into becoming illegal brokers.
He said this 'illegal pandemic' will continue unless prosecution takes place as defined under section 30 of the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242).
"The money may be small but the number of cases is many. The registered agents and negotiators must upgrade their standards of service delivery, so the public will not engage illegals. MIEA has long advocated this and is conducting many courses and programmes to help in this cause," he said.
Sundram was commenting on a letter by Jimmy L, published in the New Straits Times, recently.
Jimmy raised the issue of MIEA advising the public to be wary of scams especially during the MCO period and to make verifications with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP) so that the public deals only with registered estate agents or negotiators.
He also called out to MIEA, BOVAEP and the Ministry of Finance (MOF) to look at the issue of illegal brokers worsening many times over.
Jimmy questioned if the Act 242 is just another toothless tiger and whether it is effective enough to protect the Malaysian public and consumer, or has enforcement been lacking.
"There are people who break the law in this country, but some are caught, fined and some thrown into jail. Where are the statistics to show the enforcement of the Act 242 and more importantly, where are the convictions necessary to serve as deterrence?" he asked.
Sundram said MIEA echo Jimmy's voice to MOF to take cognizance of the concerns that encapsulates the profession.
"While we understand that there is a weakness in the law, the government must place importance to the real estate profession that maintains about 25,000 real estate negotiators, 2,500 real estate agents and 2,000 probationary estate agents that contributes close to RM84 billion to the economy annually," he said.
Sundram said he raised the issue of the problem that lies therein that after 40 years of the passing of Act 242, where illegal brokers persist and have worsened many times over.
"MIEA is not refuting the claim by Jimmy and we have to establish that we have consistently over the last 20 years, created awareness campaign, media engagement on the issue of illegal estate agents and the damage they have caused to the public," said Sundram.
"We have also engaged the relevant stakeholders including the police. The police, though busy, must play a role as the public are falling prey under various methods," he said.
Sundram said the public also has a role to play, for as long as there is a 'pipeline' to make money from sellers and buyers they (illegal brokers) will continue to grow.