The Malaysian Institute of Estate Agents (MIEA) is questioning the outcome of unlicensed real estate agents, who have not yet faced legal action despite 20 police reports that have been lodged thus far.

MIEA president K. Soma Sundram said that there were more than 10,000 unlicensed agents and their presence are hurting the industry’s image, adding that there were only about 1,500 active legitimate estate agents at present and 10,000 genuine real estate negotiators in the country.

“Unlicensed agents hurt the image and professionalism of the industry while posing a threat to the public because there will be no legal recourse if something goes wrong.” 

He also added that unlike registered estate agents, unlicensed agents would not maintain clients’ accounts or have professional indemnity.

MIEA has sent two letters to Prime Minister Datuk Seri Abdullah Ahmad Badawi detailing the problems of unlicensed agents and seeking the Government's help. 

Although unlicensed agents charge a lower service fee, he said they will also sell a property for more than the price agreed to by the seller and pocket the difference.

Soma Sundram points out tell-tale signs on how the public could identify the legitimacy of an real estate agent, such as if the agent has a physical office and advertisements that carry their office telephone number as well as the firms “E-number” to show that the firm is registered with the Board of Valuers, Appraisers and Estate Agents.