Separate boards for property managers deemed unhealthy
Developer weighs in on contentious issue
TWO calls to have separate boards to govern property managers and real estate agents have raised many contentions with a developer weighing in on the issue.
The Malaysian Institute of Professional Property Managers and Facility Managers (MIPFM) made the call on Oct 25, followed by the Malaysian Institute of Estate Agents (MIEA) on Oct 31.
The developer of Bandar Utama in Petaling Jaya Tan Sri Teo Chiang Kok has thrown his support behind a new board for property managers. It is silent on MIEA’s call. Different associations and entities related to the property profession are giving a loud Nay!
The real estate profession, which mainly comprises valuers, estate agents and property managers, is currently regulated and governed by the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP).
BOVAEP was set up under the purview of the Finance Ministry (MoF) and under an Act of Parliament. It has given a flat No to setting up three separate boards to govern and regulate valuers, agents and property mangers.
For the benefit of the lay person, the property profession is broadly divided into real estate agents, valuers and property managers, among others.
The call for a separate register will affect a large population, particularly those living in strata developments which include landed strata, high-rise developments like condominiums and serviced apartments and even low-cost housing because these too have to be managed and maintained by a professional property manager.
It also affects commercial developments like offices and malls, to name some. Good management enhances property value so the outcome of the current argument is not limited to members of the real estate profession. The entrance of a developer into the fray adds dimension to the issue.
BOVAEP president Nordin Daharom says having separate boards is counter-productive to the growth of the profession and industry. Nordin is also the director-general of the Valuation and Property Services Department (JPPH), which is parked under the Finance Ministry (MoF).
Nordin’s speech, read out by JPPH deputy director-general (operations) Ahmad Zailan at a Nov 1 press conference, indicates the real estate profession is a multi-disciplinary one. Each branch – real estate agents, valuers and property managers – thrives on each other. To separate one from the other would tear the profession apart, making it impossible to regulate or govern.
Nordin says that as a governing body, BOVAEP comprises expertise from the government and the private sector. This gives a Malaysia Inc dimension as well as a legal framework to the broader industry. It allows the profession -- and the sector -- to thrive.
BOVAEP was set up in 1981 as an independent body to administer the registration of valuers, appraisers, estate agents and property managers, Nordin says.
Its objective is to regulate the different expertise involved in the property sector according to a certain code of ethics and practice.
Nordin says it is inaccurate to say that a property management