Why Real Estate Agency Practice (REAP) is tagged to an Office?
Real Estate Agency Practice (REAP) is fundamentally tied to the concept of an office, as outlined in Standard 1 of the Malaysian Estate Agency Practice (MEAS). This requirement underscores the necessity of having a physical office to effectively conduct real estate agency services. To appreciate this, it’s essential to first define real estate: it refers to immovable properties—assets that cannot be relocated and are permanently affixed to the ground. This characteristic is crucial for understanding why real estate agency practices are geographically anchored.
The primary purpose of a real estate agency is to provide services related to real estate properties. These properties are inherently linked to specific geographical locations, necessitating an agency’s presence nearby to adequately manage and service these assets. When an agency is appointed to represent a property, it is responsible for safeguarding the interests of that property owner, which often includes access for potential buyers or tenants.
For example, when a property is listed for sale or rent, the agency holds the key to facilitate viewings. In cases where the property is furnished or occupied by a tenant, the agency’s ability to conduct viewings and address tenant concerns becomes more complex. If a property is managed by an agency located far away—say, an agency based in Kuala Lumpur managing properties in Ipoh—logistical challenges arise. Can the agency promptly respond to a passerby interested in viewing a property? If issues occur, such as missing items in a furnished property, is it reasonable for the property owner to contact an agency hundreds of kilometers away for resolution?
Having an office in the same geographical area as the properties being managed not only facilitates effective communication and responsiveness but also enhances trust between the agency and the property owner. The closer an agency is to its listings, the better it can serve clients, conduct viewings, and negotiate deals in a timely manner.
Furthermore, if an agency consistently serves properties outside its designated area and faces challenges related to travel time and responsiveness, it may not be appropriate to take on such listings. In such cases, the agency should consider whether the business volume justifies establishing a local office, registered with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP). This local office should also have a resident manager who is a registered estate agent to ensure compliance and effective service delivery.
Nevertheless, there are agencies which operate without registered branch offices. This is illegal in law. Of course, due to greed and malpractices, such illegal offices without a registered estate agents are set up by their HQ or RENs who are active in that location(s). The public must be aware of the risk they are taking with these kind of practices. Your rights as owners of properties cannot be mismanaged by these unprofessional agents. For, they can fly-by-night, and you do NOT have an Office with Registered Estate Agent to lodge your complaint!
In conclusion, the stipulation that Real Estate Agency Practice be conducted from a physical office is rooted in the practicalities of real estate management. A local presence not only enables better service but also aligns with the core responsibilities of an agency. By prioritizing geographical relevance, agencies can fulfill their obligations more effectively, ensuring a higher level of service for property owners and clients alike.