Why Is BOVAEA/BOVAEAP Important to Property Investors and Seekers?

It is important for property investors/seekers to get acquainted with BOVAEA/BOVEAP, where the operation is governed by the provision of Valuers, Appraisers, Estate Agents and Property Managers Act 1981 or ACT 242, for any matters about the purchase and maintenance of their property.

In this article:

• What is BOVEA/BOVEAP?
• What Are the Roles of BOVAEAP?
• BOVAEAP’s Code of Conduct & Ethics?
• How BOVAEAP Supports Property Investors and Seekers?
• How Much Power Does BOVAEAP Have?

Any successful investor will have property investment high up in their portfolio. As we know, property investment carries its own potential to deliver higher returns in the long run and is less volatile compared to other types of investments.

When it comes to real estate investment, you need to know and decide on a good investment goal, cash flow plans, types of property, valuation, capital appreciation prospect, the market, and, of course, the location.

Before becoming a successful and conscious property investor, you need to know about the market price, the prospect of your potential investment and other factors such as valuation, purchase, and property management.

Valuers and Appraisers educate on finance, and the market; Estate Agents provide service in buying, selling, and leasing properties for clients; and Property Managers ensure that the building is well maintained and advise on lease renewals, selection of quality tenants, and the appropriate tenant mix.

While this information is critical in property investment, knowing where to turn if help is needed would be equally important.

What is BOVEA/BOVEAP?

The good news is that real estate investors in Malaysia have a one-stop centre for all the information and help needed for their ventures—the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEAP) or Lembaga Penilai, Pentaksir, Ejen Harta Tanah & Pengurus Harta (LPPEH), which was set up in 1981 under the purview of the Ministry of Finance.

It is important for property investors/seekers to get acquainted with BOVAEA/BOVEAP, where the operation is governed by the provision of Valuers, Appraisers, Estate Agents and Property Managers Act 1981 or ACT 242, for any matters about the purchase and maintenance of their property.

What Are the Roles of BOVAEAP?

The Board primarily regulates the Valuers, Appraisers, Estate Agents, and Property Managers practising in Malaysia.

Individuals or companies who wish to practice valuation, real estate agency and property management must register with BOVEAP.

According to the Board, its functions include:

1. To keep and maintain the Register of Valuers, Appraisers, Estate Agents and Property Managers, Probationary Valuers and Probationary Estate Agents and firms of Valuers, Appraisers, Estate Agents, and Property Managers.
2. To approve and reject applications for registration under ACT 242.
3. To hold disciplinary proceedings.
4. To conduct examinations.
5. To hear and determine disputes relating to the professional conduct or ethics of valuers, appraisers, estate agents and property managers or to appoint a committee or arbitrator to hear and determine such disputes.
6. To regulate the professional Conduct/Ethics of Valuers, Appraisers, Estate Agents and Property Managers.
7. To prescribe the rules concerning the taking out of professional indemnity insurance for valuers, appraisers, estate agents and property managers against any class of professional liability
8. The Board shall hold in trust the monies in a dispute between a registered valuer, appraiser, estate agent, or property manager and a client or third party in a contract for valuation, appraisal, estate agency, or property management services whenever it deems necessary.

BOVAEAP’s Code of Conduct & Ethics?

BOVAEA currently has 1,008 registered Valuers, 2,151 registered Estate Agents and 2,776 Property Managers and practices a stringent code of conduct and ethics for its members, including:

1. To render service with absolute fidelity, practise the profession with devotion to the high ideals of integrity, honour and courtesy, loyalty to his country, and conduct business in the spirit of fairness and goodwill to his fellow professionals in the real estate industry.
2. All valuation reports must follow the format and guidelines issued by the Board occasionally.
3. 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.
4. Registered estate agents protect the public against fraud, misrepresentation and unethical practices concerning all real estate transactions.
5. Registered estate agents shall not accept fees from more than one client in any transaction.
6. 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 acts for the other party to the same transaction except with the knowledge and consent of the parties concerned.

The functions, code of conduct, and ethical requirements set by BOVEAP are to protect property investors or clients against fraud and maintain the highest standard of practice in Valuation, Estate Agency, and Property Management.

How BOVAEAP Supports Property Investors and Seekers?

Purchasing, maintaining, and selling property are the main concerns of property investors, who want a smooth transaction flow. BOVEAP supports these investors in this area.

To help property investors be informed, the Board provides information on the firms and individuals they deal with. Before making any purchase, investors can check the eligibility and accountability of the entity they are dealing with.

As the governing body that ensures Valuers, Appraisers, Agents, and Property Managers are properly licensed, BOVAEAP provides comprehensive data. Individuals or firms can be verified on the BOVAEA website or by contacting them directly. The verification is crucial, as we should only deal with an officially recognised professional.

Engaging with unauthorised entities would be a significant risk to an investment and could lead to legal repercussions. This act of due diligence could safeguard the property investment and ensure the transactions are secure, legal, and conducted with the utmost professionalism.

READ MORE: What is the difference between a Real Estate Agent (REA) and Real Estate Negotiator (REN)?

How Much Power Does BOVAEAP Have?

Any problem pertaining to Valuers, Appraisers, Estate Agents, or Property Managers can be referred to BOVAEAP, which has full jurisdiction over its members under ACT 242.

The Board can hold disciplinary proceedings in accordance with Part VII of the Act. It says if a Valuer, Appraiser, Estate Agent, or Property Manager registered under BOVAEAP is convicted or found guilty of any offence of fraud or dishonesty, the Board may:

It is crucial to be well-informed on the roles of BOVAEAP and how it benefits property investors. The Valuers, Appraisers, Estate Agents, and Property Managers registered under the Board will be able to help investors optimise usage and enhance their property investments to ensure optimum returns and a successful property investment.