iExpert : Cool tool for the answers you seek – and the questions you hadn’t thought of! - Q & A

Converting residential house for commercial use

Q: I understand that there are many residential houses being used for commercial purposes. May I know whether this is legal? What are the procedures to convert a residential house for commercial use?

A: You have to convert title usage from residential to commercial. Charges and tax will be imposed base on property value you are converting.

A: You will have to check with the town planning authorities on the land usage and also obtain their approval for the conversion of land title. Conversion will only be legal if it has been approved by the relevant authorities and guidelines are adhered to.

Q: Hi, I am an undergraduate student who is interested to become a part time property agent. I just want to know where I should start. Below are some of the questions that I have in mind:
1) Do I need a licence to become an agent?
2) Do I need to register with an agency?
3) Does agent receives commission, or fixed salary?

Besides the questions above, I would really appreciate if I can get any info to help me start in this field.

A: Generally, there are no barriers to entry for someone to start off as a property agent (they call them real estate negotiators). Most licensed real estate firms would gladly welcome you to join them; even on a part time basis. Indeed, they will even pay you a commission from the professional fees they earn from a sale or rental of a property which you conclude on. However, while all this sounds great, it is a difficult field and extremely competitive.

To succeed you would need to join an established real estate agency which offers a significant level of training and support. For the former, you would need to be trained at the in's and out's of both rentals and sales. These are fairly complex processes and you will need to understand them completely before you begin to start showing any properties. Most potential purchasers and tenants are extremely knowledgeable these days and can spot a rookie very quickly. A good starting point is just to focus on one segment of the market (sale or rentals of terrace house) in one particular area. That way, you quickly get up to speed on the locality, what is has to offer, the average price of houses there, etc. In other words, you come across as a miniature expert. Do note too that how you present yourself is also very important to how your potential employer views you and also how potential clients (buyers or tenants) treat you. The better you dress, the better your interaction.

Q: I have just purchased a second-hand apartment unit and the key was handed over to me in the month of October 2009. From November 2009 onwards, I started painting work n it took me around three weeks to complete. Part of the furniture had been moved in and I was anticipating to fix lighting onto the ceiling. However, to my dismay, one day in December as I went into my unit, I noticed water droplets dripping from the ceiling in living hall. I took quick action the next day by informing the management office about my problem and they did send one of the staff to my unit to investigate.

According to them, the problems may be due to upper level's unit and they will ‘try their best’ to take further action. One week passed, and the water is still dripping and I again referred to the management office and surprisingly noted that they had not taken any action on this problem. The unit above was rented to a group of tenants and is in a very bad condition as observed from the exterior. I got the owner's contact number from the tenant and immediately called up the owner. He claimed that he has three units in the same area and all are facing problems. He insisted that the problems are not due to his unit and told me that he would not waste money fixing that. I asked the building management again and they claimed that the fault is due to the unit directly above mine. I am greatly disappointed. Please advice.

A: I have an apartment in Kota Damansara and it is also having the same problem as yours. I have checked with the management and also consulted a contractor about the problem. Apparently, the leaking is due to water from the upper unit toilet floor seeping through to the unit below. In order to fix it you might have to engage a contractor to fix the leaking area if you could identify the exact spot but most probably you would have to redo the flooring and putting a waterproofed layer beneath the floor tiles. I was informed legally, the cost has to be borne by the owner of the upper unit but most owners in such circumstances will disclaim liability. In this case, you might have to resort to legal action. Otherwise, you might have to repair the upper floor yourself and bear the cost. But you still have to seek consent from the owner to enter his apartment to carry put the repair. Hope this is of some help to your predicament.