FAQ

How To Become A Licensed Real Estate Agent in Malaysia?

I am now the registered Estate Agent licensed with the Board of Valuers, Appraisers and Estate Agents under the purview of the Ministry of Finance, Malaysia.

To become such a professional in Malaysia, a Candidate has to sit for a two-part real estate examinations offered by the Board of Valuers, Appraisers and Estate Agents. These examinations will be held only once a year, around June or July of each calendar year.

The subjects for the Part I examination are:

The subjects for the Part II examination are:

A Candidate may take all or at least 2 of the 6 subjects in the respective part at one sitting and shall be given credits for the subjects passed which shall lapse at the end of the third year.

A pass in all the above 6 subjects in Part I makes the Candidate eligible for Part II. Candidates must take the Part II examination not later than 5 years after passing all the subjects in Part I examination.

After passing Part I and Part II of the Estate Agent Examination, a Candidate shall register as a Probationary Estate Agent and must at all times be employed on full time basis in an Estate Agency Firm or Establishment approved by the board; undergoing 2 years post-qualifying practical training and experience in Malaysia, under the mentorship of a Registered Estate Agent; and thereafter may apply to sit for the Test of Professional Competence (TPC) including an oral interview.

The successful Candidates have to maintain a Work Diary purchased from the Board and shall record it from the date of admission as a candidate for the TPC. Experience gained before registration for the TPC would be excluded.

Entries in the Dairy must described clearly and concisely the actual work done in accordance with the areas of approved professional experience such as: Sale & Purchase of Residential, Commercial, Industrial and Agriculture Property; Tenancies/Leases of Residential, Commercial, Industrial and Agriculture Property and Marketing of Property for Sale/Letting.

The Dairy must be signed weekly by the Candidate and the Registered Estate Agent, being the Mentor for the Candidate. After completing the 1^st year of recording, a Candidate is required to submit to the Board for evaluation and similar procedure to be adopted after recording 2^nd year Work Dairy.

On completion of the required training period, a Candidate must prepare a record of experience outlining the experience that have been obtained during the period of professional experience covering the type of work undertaken, the geographical areas in which the experience was gained, the types of property dealt with, the Candidate’s level of responsibility and any other information that demonstrate the experience gained.

A Candidates is also required to prepare and submit Two Practical Tasks. These Tasks are intended to test the Candidates’ ability at report writing, logical expression, professional judgement and ability to be objectivity critical of a project undertaken personally by the individual Candidate.

Task I – Prepare a report showing step by step the agency process for sale of a property that

the Candidate sold from the date of listing of property until its final transaction.

Task II – Prepare a Marketing Proposal to market the sale of a high-rise building or a mixed

housing development. Writ the report as though the Candidate is bidding to get the marketing rights.

Upon satisfying the areas of approved professional experience recorded and in compliance with the requirements set by the TPC Committee, the Candidate will be interviewed on the Practical Tasks including the following:

Upon passing the Part III – Test of Professional Competence (TPC) including an oral examination, the Candidate has now completed the Estate Agent Examination, to be eligible for registration as an Estate Agent with the Board of Valuers, Appraisers and Estate Agents, Malaysia (LPPEH). As defined under Section 22C of the Valuers, Appraisers and Estate Agents Act 1981, only Registered Estate Agents can practice, carry on business or take up employment as an Estate Agent.

P/S - As mentioned in Berita Lembaga Penilai April 2010, the Board had decided to amend the RULES to gear towards liberalizing our professional services, and a significant amendment was proposed that the estate agent's examination will now consist of only 11 subjects as opposed to 12 subjects as menioned above. Any candidate who desires to take all the 11 subjects may do so at one go as there are no restractions, as far as the subjects are concerned. Nevertheless a time frame of 5 years is imposed within which period one is required to complete one's examination. This proposed amendment will definitely be beneficial to all those who are interested in pursuing their professional career, in order to be registered as an Estate Agent. - Edited on 12th July 2010

Experienced bankruptcy lately? You may wonder if you will still be able to get a home loan. You may also be wondering if buying home after bankruptcy is a good idea for you.

While bankruptcy can make your mortgage loan approval difficult, it is still possible to get approved. In fact there have been more and more, bad credit loans coming out all the time.

They are called the Subprime lenders; they are focusing more on helping individuals with poor credit in buying home after bankruptcy.

This is happening mostly because bankruptcies are still on the rise and there is an increasing number of people with bad credit who are looking for home financing.

Just to give you a bit of an overview here are some very good reasons to consider after bankruptcy buying home:

Increase your credit rating. When you make your payments on a regular basis, you will be able to develop your credit rating. Once your pre-payment penalty is done, you should be able to refinance your credit loan for a much lesser interest rate.

After your bankruptcy has been for ended 2-3 years, you ought to have a much easier time qualifying for a lesser interest rate mortgage loan.

You will be able to own an asset. If you are just renting a home then you are absolutely throwing your monthly payments away. Why not just buy a home, over time, its value will increase and you are working you way towards owing an asset.

Once you have bought your house, as soon as 6 months or so later, you might be able to take out an equity loan on your home and consolidate any other debt that you might have since your bankruptcy or debt that could not be included in your bankruptcy.

Taxes and student loans will not be discharged in a bankruptcy. You may also want to use the extra cash to invest in a business venture or for needed home improvement.

It is very tempting to buy an new home, new car, do some renovations, etc., after bankruptcy discharge you have no debt left. You will probably feel like you can afford a larger house payment due to the financial experience that you have.

But it is not that easy so here are some factors to consider before committing yourself to a new house payment.

The Pre-payment penalty.? This penalty is usually about 6 months worth of house payments. And usually lasts from 2-3years. Once you sign those mortgage papers you absolutely have to make those payments. If you don’t have the amount of the pre-payment penalty in savings, you are locked into making the payments or losing the house.

The Two Year Mark. Keep in mind that after 2-3 years from the date of the bankruptcy discharge, mortgage loans will be much easier to get. With a small down payment, you might even be able to get a mortgage loan without a pre-payment penalty.

So, if you are within 6 months or so from the 2 year mark. It would be smart to wait it out and have more mortgage loan options.

Borrowing Too Much. This is the most common mistake that we usually get into. If you do decide to buy a house, buy one that you know you will be able to afford. Don’t max yourself out on credit, living right up to the edge of your income.

If your income suddenly drops, you’ll want to make sure that you can still afford your house payment. Be conservative with how much home you need to buy.

Most of us always think that bankruptcy is the end of our credit life. But don not despair because I know some people that have been in to bankruptcy but has been able to get up again and rebuild there credit quickly most of them has even been able to buy a new house.

Bankruptcy will show up on your credit report for 10 years. That means that every mortgage lender will certainly see that fact when evaluating your mortgage application.

Although it may be difficult to find a bank to give you a mortgage it’s certainly not impossible. Banks want to make money and you may find one that’s willing to take the risk.

What are the Tips on Buying a Condo?

If you are looking for home buying information, you have come to the right place. One of the first questions in deciding to buy a home is house or condo? If you are leaning toward a condo, read on. Here are five important topics to discuss with your real estate agent before beginning your home buying search:

1) What You Can't Live Without

If you can't live without your own backyard, a big garage, or plenty of space between you and your neighbors, your needs may be better suited to a detached single-family residence. However, if the idea of a condo sounds right, talk to your real estate agent about other important aspects of your future home. For example, a gourmet cook might seek out a well-designed kitchen. Someone who works from home might need dedicated space for a home office. Additionally, there are decisions specific to condo living which you will need to think about. What types of association amenities are you looking for? These can include pools, covered parking, clubhouses, and 24 hour security. Do you have a pet? Some condo associations have restrictions regarding pet ownership or even such things as having outdoor barbecues. Be sure to include all aspects of your home buying requirements in the information you provide to your real estate agent.

2) Schools and Family Needs

The quality of school-systems has long been important information for home buying families. If you have children or are thinking about having children in your new condo, you'll want to discuss school information and statistics with your real estate agent. Not only is it important to consider the location of your condo relative to area schools, but you'll also want to think about the quality and diversity of local school offerings. Your real estate agent can provide both public and private school information for all the neighborhoods in which you're considering buying a condo.

3) Commuting

For many condo-owners, commuting from home to work and back is a necessary evil. Some people feel that a long commute can detract from their quality of life and the time they get to spend at home. Commuting should be a critical factor in home selection, because in many communities, traffic backups are increasingly common. And today, this phenomenon applies to urban, suburban and even rural areas. If having little or no commute to work is important to you, convey this to your real estate agent.

4) Community Details

Whether you hope to buy a condo in a vibrant urban neighborhood or a charming rural town, the demographics, details and community statistics of a particular area are almost as important a consideration when buying a home as the details of the house itself. Even more significant in a condo living situation is information about your condominium's own community. Are most of the residents retirees? Recent college graduates? The community information and statistics of both your condominium and the town or city in which it is located are crucial factors in your home buying decision.

5) Budget & Condo Fees

For some, the decision to purchase a condo is based primarily on the convenience a condo lifestyle offers. For most people however, the most rigid constraint of home buying and the central reason for choosing a condo is the buyer's budget. While condos are generally less expensive than houses, a buyer should be aware of hidden costs, like the monthly maintenance charges and sinking fund and its dues. Be sure to research the condo association's dues and exactly what those dues include. It's a good idea to check out a one-year utility history for the unit you're interested in, as well.

Thanks to today's creative lending solutions, budget constraints are not as rigid as they once were. Many innovative mortgage options are now available to both first-time and veteran home-buyers. Before beginning a condo search, you should talk to both your real estate agent and your lender about your finance options and ultimately, your budget.

How Can You Qualify For A Mortgage?

Nothing can deflate the joy of buying a new home more than worrying about being turned down for a mortgage loan. Avoid disappointment by sharpening your credentials before you go hunting for a loan. The following steps apply to both spouses if both your incomes are being used to qualify for a loan.

1. Job stability. Lenders look for stability of employment. Two years in the same job or at least the same occupation is considered the minimum. It is usually best not to change employment if you have a home purchase in mind unless it’s going to increase your income. Whatever you do don’t start a new business within two years before applying for a mortgage. As much as everyone else loves an entrepreneur, lenders do not.

The best type of loan for a self employed borrower is what is known as a no income verification loan. The lender will make the loan based on what the borrower states as income. Of course, the income stated must make sense for the type of business in which the borrower is engaged. These loans are more difficult to find among local lenders but they are available so check with several sources. You must have excellent credit to obtain this type of loan.

2. Credit. Lenders judge you on how you have paid back your previous loans. Your credit report will show your lender all of your past and current debt. It will also show if you paid on a timely basis. The best advice is to make all of your credit payments on time. You will be asked to explain any late payments on your credit cards, car payment, or mortgage. Don’t say you forgot. Lenders don’t accept this as a reason to be late. If you presently have a mortgage be sure you don’t make payments after the thirty day grace period. Conventional lenders will not make you a mortgage if you have been delinquent in the past twelve months.

There are lenders who will make loans to people with bad credit, such loans usually come with a high cost. If you have bad credit, tell your lender up front. Seek out lenders who will accept your credit problems. Once you establish good credit you can always refinance and get a lower interest rate. Beware of adjustable rate loans that can cause you problems when they adjust.

3. Don’t buy anything new. If you know you are going to be buying a new home, it is not wise to go out and buy a car or make other major purchases on credit. Your total monthly bills will be added up to see if can afford the home payment. The higher your monthly bills, the lower the amount of mortgage for which you will be qualified. Don’t buy anything even if you are going to pay cash. Lenders like to see money in the bank.

4. Savings. When you start thinking about purchasing a home, all of your efforts should be directed to saving money. The more you put down on the purchase price, the lower your monthly payments. A larger down payment also makes it easier to qualify for a loan. There are also many costs associated with home loans that generally add up to about 5% of the loan amount. The lender is going to want to verify that you have enough money to pay these closing costs in addition to your down payment.

In today’s market there are loans available that have no closing costs if you are willing to pay a higher interest rate. A good idea when money is tight at closing, but it could be more expensive if you live in the home for a long period of time. Don’t get your down payment money from a sock under the mattress. You should be able to show that you saved the money yourself so it is best to keep all of your savings in one account. The lender is going to want to see at least two consecutive months of bank statements verifying your savings. Lenders will typically allow you to receive part of your down payment as a gift. The gift giver will be asked to provide a letter stating that he or she made the gift to you and do not expect repayment.

5. Income. Your income is one of the most important ingredients for qualifying for a home loan since it will be used to determine the amount of mortgage you can afford. Your employer will be asked to verify your employment by completing a written verification form. Alternatively, you can provide a current payroll check stub and two year’s tax returns to prove your income. If you are self employed you will be required to pro?vide a copy of two years tax returns. For qualifying purposes, only the income you show on your tax return will considered.

6. Property. Look for a sound home in a good neighborhood where property values are steady or rising. The home you contract to buy will be appraised. The appraised value should be close to your purchase price. If the appraised value is less than the amount you are paying, consider renegotiating your purchase contract. A low appraisal will mean the lender will use the lesser of the purchase price or appraised value in determining the maximum loan that will be made on the property. Thus you would have to put more money down.

On used homes, a termite inspection and roof inspection may be required by the lender. This protects both you and the lender and typically is nominal in cost. You may be able to negotiate with the seller to pay for these inspections. If repairs are needed, the lender will require that they be completed before you can close on the loan. Such repairs are usually the obligation of the seller, but the terms of your purchase contract will prevail.

7. Pre qualify. Visit a lender who will show you what type of financing is available and the maximum payment you will be able to afford. That will tell you how much home you can afford. Arranging your financing in advance will give you a strong bargaining position with a seller and will help you be realistic in your home hunting.

8. Shop around. Talk to several lenders. Work with someone who you are comfortable with, who has intelligent responses to your questions and does not use high pressure tactics. Look for a lender that has several different types of loans to offer and then ask lots of questions.

9. Educate yourself. Learn as much as you can about mortgage financing and you can save tens of thousands of dollars over your lifetime. Read articles, search the internet, check out books from the library, attend lender seminars for new home buyers or ask your local financial institution for information that may be available.

10. Alternatives. If all attempts to finance your new home fail, ask your Real Estate Agent to identify property where the seller is willing to stretch the financing. Most sellers offering this type of financing are anxious to sell and might not be so fussy about a cloudy credit history and other institutional lender concerns.