Lecture 2 - Standard 1

PROPERTY MANAGEMENT
LECTURE 2: PROPERTY MANAGEMENT STANDARD
STANDARD 1: THE PROPERTY MANAGER
ASSOC. PROF. SR DR WAN ZAHARI WAN YUSOFF

DEPARTMENT OF REAL ESTATE MANAGEMENT
FACULTY OF TEHCNOLOGY MANAGEMENT & BUSINESS
UNIVERSITI TUN HUSSEIN ONN MALAYSIA
MALAYSIAN PROPERTY MANAGEMENT STANDARDS
THE BOARD OF VALUERS, APPRAISERS AND

ESTATE AGENTS, MALAYSIA.
WHAT IS PROPERTY MANAGEMENT?
In Malaysia, the Valuers, Appraisers and Estate Agents Act 1981 (Act
242) defines property management as,
"the management, maintenance and control of any land, building

and any interest therein, excluding the management and
maintenance of property-based businesses, on behalf of the owner
for a fee..."
MALAYSIAN PROPERTY MANAGEMENT
STANDARDS
STANDARD 1
THE PROPERTY MANAGER

INTRODUCTION
Property management is a regulated professional

practice governed by the Valuers, Appraisers and
Estate Agents Act 1981 (Act 242) which defines
Property Management and the role of Property
Managers in the management of properties.
.INTRODUCTION
This Standard specifies the duties, qualification
and code of conduct of the Property Manager so
that the Client as well as the general public are
assured of a high standard of service that will be
provided by professional property managers.
DISCUSSION 1
WHAT ARE QUALIFICATION TO BECOME A

REGISTERED VALUER?
CODE OF CONDUCT
General Code of Conduct and Ethics for Registered Valuers,

Appraisers and Estate Agents
CODE OF CONDUCT
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.
CODE OF CONDUCT
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
..CODE OF CONDUCT
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.
..CODE OF CONDUCT
A registered estate agents 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 valuers, appraisers and estate agents branch offices

shall be headed by a resident registered valuer or appraiser or estate
agent.
STATEMENTS OF STANDARD
The Property Manager shall comply with the provisions of

Act 242, Act 318 and Act 663 as well as all relevant
regulations, standards, guidelines and circulars issued by the
Board and other relevant authorities.

The Property Manager shall be qualified, competent
and experienced in managing real estate and shall be
registered with the Board of Valuers, Appraisers and
Estate Agents, Malaysia
The Property Manager shall sign important reports

and documents prepared by him.

The Property Manager shall ensure that all
contracts are signed by the Client unless the
Property Manager is required and authorized in
writing by the Client to sign any of the contracts
on behalf of the Client.

The Property Manager shall be honest and
independent and shall adhere to the code of
conduct and ethics under Act 242 and other
relevant statutes and regulations.
The Property Manager shall be adequately

covered by professional indemnity
insurance.
EXPLANATIONS
Section 19(c) of Act 242 stipulates that no one other than

those registered with the Board of Valuers, Appraisers and
Estate Agents shall be authorised to practise property
management for a fee.
The law states that anyone practicing property management

without an authority to practice will be guilty of an offence
under the Act which carries a maximum fine of RM 25,000 or
jail sentence of three (3) years or both.

Act 242 gives exemptions to property based

businesses to be managed by specialist managers
other than Property Managers. These property based
businesses includes hotels, motels, hostels,
plantations, quarries, marinas, ports, golf courses,
cinemas, stadiums, sports complexes and hospitals.
..
The Property Manager may be appointed as the

Managing Agent by the State Authority under section
10B(6) or by the Commissioner of Buildings under Section
50 of the Strata Titles Act 1985 (Act 318) to exercise the
powers and discharge the duties and functions of a
management corporation.
ACTIVITY 2
1- WHAT ARE THE TASKS OF PROPERTY MANAGER?
2- WHO ARE ELIGIBLE TO BECOME A PROPERTY MANAGER?
3- WHY ARE THE ROLE OF PROPERTY MANAGER IS IMPORTANT?
4- FIND OUT THE PROPERTY MANAGEMENT KEY PLAYER COMPANY IN

MALAYSIA

The Building and Common Property
(Maintenance and Management) Act 2007 (Act
663) further permits the Commissioner of
Buildings to appoint a Property Manager as
Managing Agent where the maintenance and
management of a building is found to be
unsatisfactory.
.
The Property Manager shall deliver his services
professionally and observe the professional
ethics and code of conduct expected of him as a
professional outlined as below :

adhere and advocate within the industry to the spirit of
conforming to and complying with all applicable laws and
regulations;
shall practice his profession with honesty, integrity and shall

always act in the best interest of the Client;
affirm and commit to a mission towards professional practice

above personal gain;
..
continuously improve knowledge and skills, as well as faithfully observe,
practice and comply with every standard, directive, circular, guideline and
decision of the Board;
inspire and encourage others to embrace and practice these ethical

principles and standards through their own sense of dedication and
professionalism;
possess a working knowledge of the codes of conduct and ethics

propagated by other professional organisations that serves the real estate
industry;
..
maintain the high standards of his profession and cooperate with the Board to
protect the public against fraud, misrepresentation and unethical practices in
property management and any other act or omission by persons practising
property management which may bring disrepute to the profession;
avoid any criminal offence or professional misconduct;
shall not express or communicate to the public any criticism or comment on the
professional services or conduct of, or professional fees charged by a fellow
registered Property Manager.
The above guidelines and code of ethics are not exhaustive and serves as a
guide.
DISCUSSIONS
Q&A

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PROPERTY MANAGEMENT

LECTURE 2: PROPERTY MANAGEMENT STANDARD

STANDARD 1: THE PROPERTY MANAGER

ASSOC. PROF. SR DR WAN ZAHARI WAN YUSOFF

THE BOARD OF VALUERS, APPRAISERS AND

"the management, maintenance and control of any land, building

THE PROPERTY MANAGER

Property management is a regulated professional

WHAT ARE QUALIFICATION TO BECOME A

General Code of Conduct and Ethics for Registered Valuers,

A registered valuer or appraiser who acts as an estate agent to a

A registered valuers, appraisers and estate agents branch offices

The Property Manager shall comply with the provisions of

The Property Manager shall sign important reports

The Property Manager shall be adequately

Section 19(c) of Act 242 stipulates that no one other than

The law states that anyone practicing property management

Act 242 gives exemptions to property based

The Property Manager may be appointed as the

4- FIND OUT THE PROPERTY MANAGEMENT KEY PLAYER COMPANY IN

shall practice his profession with honesty, integrity and shall

affirm and commit to a mission towards professional practice

inspire and encourage others to embrace and practice these ethical

possess a working knowledge of the codes of conduct and ethics

avoid any criminal offence or professional misconduct;

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