Conspiracy of Real Estate Agent and Lawyer

[jadewhite]

I engaged a Real Estate agent to dispose my property and was make known that the selling price needs to be reduce to speed up the disposal.

As I need to have the property dispose urgently, I agree to sell to the agent at the price of RM160k. A standard document on the intention to sell and puchase was signed where I am the seller and the agent is the buyer. The 2% upfront was paid by the agent and of course was hold by the agent as commision.

After more than 2 weeks later, I was asked by the agent lawyer to sign the S&P. To my surprise the buyer's name was not the agent but of a different name. After signing the S& P , separately I came to know that the selling price of the property was not RM160k as mentioned in the S&P.

The agent working together with the lawyer has transacted the sales of the property for about RM179k. And the differences was separately paid by the buyer to the agent. This I came to know through the buyer itself. I felt so cheated by the agent and lawyer. Is there something that I can do to claim back the differences? What are the rights as a vendor for this case?

[ksj_cool]

Is the property a leasehold or freehold?

[USJ27Resident]

I engaged a Real Estate agent to dispose my property and was make known that the selling price needs to be reduce to speed up the disposal. .....

The agent working together with the lawyer has transacted the sales of the property for about RM179k. And the differences was separately paid by the buyer to the agent. This I came to know through the buyer itself. I felt so cheated by the agent and lawyer. Is there something that I can do to claim back the differences? What are the rights as a vendor for this case?

If I am not mistaken - the Real Estate Agent and the Lawyer are answerable to their professional bodies... The Board of Valuers, Appraisers and Estate Agents and the Bar Council. If you really think there is an element of fraud and you've been cheated - make a police report and report these unscroupulous fellas to their respective bodies!!

[USJ27Resident]

Send your real estate agent this ...

General Code of Conduct and Ethics for Registered Valuers, Appraisers and Estate Agents

•Every registered valuer or appraiser or estate agent are duty bound to render service to his client with absolute fidelity, and to practise his profession with devotion to the high ideals of integrity, honour and courtesy, loyalty to his country, and also to conduct business in the spirit of fairness and goodwill to his fellow professionals in the real estate industry.

•A registered valuer or appraiser who acts as an estate agent to a transaction should not subsequently value the same property for the same purchaser.

•All valuation reports must follow the format and guidelines issued by the Board from time to time.

•No registered valuer, appraiser or estate agent shall, directly or indirectly, allow or agree to allow participation by any person or company, other than a registered valuer, appraiser or estate agent in the profits of his professional work.

•It is a duty of a registered estate agent to protect the public against fraud, misrepresentation and unethical practises in respect to all real estate transactions.

•A registered valuer, appraiser and estate agent must inform his client of the nature of any business connection , interest or other affiliations he may have in connection with the service to the client.

•A registered estate agent shall not accept fees from more that one client in any one transaction.

•A registered estate agent shall not act for one party to a transaction while another registered estate agent from the same firm or related or affiliated firm, is acting for the other party to the same transaction except with the knowledge and consent of the parties concerned.

•A registered estate agent’s name and signature must appear on all proposals, reports and other documentation prepared by him indicating his status as a registered estate agent.

•A registered valuer’s, appraiser’s and estate agent’s branch offices shall be headed by a resident registered valuer or appraiser or estate agent.

If your real estate agent - made another 19grand on the side, without your consent.... then you should do what is right and make sure he is struck off from the board - before someone else gets conned again...

[USJ27Resident]

another hammer for your real estate crook... Tell him you are gonna tell MIEA what happened too...


Malaysian Institute of Estate Agents:
Objectives of the Institute
■To unite those engaged in the Estate Agency Practice for the purpose of extending beneficial influence on the profession and related interests.
■To promote and maintain a high standard of conduct amongst members in accordance with the Code of Ethics of the Institute.
■To improve the technical and general knowledge of persons engaged in the profession.
■To develop and foster and maintain relations between members of the institute and to provide a platform for the networking and exchanging of ideas and opinions amongst practitioners.
■To provide for the upholding of the honour, reputation and status of members.
■To provide for the training, education, examination of persons practicing or intending to practice as estate agents, or who are otherwise employed or engaged in the profession.
■To represent members in discussion and dialogues with other trade/industry bodies and Government agencies.
■To safeguard and protect the interest of the general public against fraud by practitioners or illegal agents.
■To elevate and encourage the maintenance of a high level or professionalism amongst practitioners.

[jadewhite]

Is the property a leasehold or freehold?

It's freehold

[jadewhite]

Thanks USJ27. Did wrote an email but no reply.

[USJ27Resident]

Thanks USJ27. Did wrote an email but no reply.

welcome to malaysian email etiquettes...

anyway - the bodies exist - if you willing to chase for that 19K - give em a call....

[rachel sj]

Jadewhite,

from the legal points of view, when you agreed to sell the property at RM160k to the agent & parties signed a doc to record intention to sell/buy - up to this point everything was still fine.

however, when you were subsequently asked to sign the SPA and by when you noticed a different buyer and price wasn't the agreed RM160K, you've all rights to refuse to sign the SPA because these weren't the term agreed by you when you signed the earlier doc.

See, under malaysian contract law, if you're asked to sign a doc (be it letter, a simple document or a full-fledged agreements) the Court expects you to have read & understand all details before so signing and once you signed it, the Court assumes that you've acknowledged all terms therein except under some circumstances like fraud/misrep/inducement where you'll have to prove all that.

curiously, did you not check the details of the sale (purchase price/buyer's ID) when signing the SPA ? if you have missed that, you may think of bringing an action against the agent & the lawyers under misrep/fraud apart from complaining to their prof bodies respectively.

[jadewhite]

Rachel.Thanks for the advice. I only came to know about it after signing the S&P. Potential buyer called me . Apparently she was rather upset that she have to fork out the additional amount on top of the 10%. She asked me whether I am aware of the separate arrangment which I was in kept in the dark.

[USJ27Resident]

Rachel.Thanks for the advice. I only came to know about it after signing the S&P. Potential buyer called me . Apparently she was rather upset that she have to fork out the additional amount on top of the 10%. She asked me whether I am aware of the separate arrangment which I was in kept in the dark.

Aha !!! Get in touch with the buyer la... before the agent goes to her and 'kautim' everything...

Hello... what you lost out is NOT RM19 or RM1900 - but RM19,000 - 3 zeros...

If I was you - I'd be mad as hell... and so should the buyer !!!

[ksj_cool]

Just don't sign the Forms for MOT or instruct yr bank not to release the redemption sum etc etc, this means that that you have not kept your part of the bargain under the S&P. End result - termination, pay back the 16K and get a new buyer!

[bzjude]

I think once you have signed the S&P and want to abort, you'll need to pay compensation, no? Hell, even if you abort before signing, compensation must be made to buyer and agent. I was charged 3% as ernest deposit/agent commission, so compensation was also higher as it's the equavalent amount to ernest deposit!
In this case, both seller and buyer were misled and if the transaction is terminated both parties will lose as both are the only ones privy to the contract. I do however think there is a case to pursue so if you have enough determination and time, go for it! This is like daylight robbery. Maybe a police report should be filed? My 2 cents anyway..