20180724 (Tue)
What is the difference between a REA and a REN? I see my friend operating a Sales Consultancy company doing real estate business, but he isn’t a REN or REA! Part 1 of 3.
Under the law, anyone who hold to public in dealing with sell, purchase, letting or renting of property for a fee is engaged in estate agency. This estate agency practice requires the authority to practice under S.16 of VAEP Act, 1981.
A REA is a person registered under S.22A of the VAEP Act, 1981 and given the authority to practice by way of a firm. This is like a Pharmacist being registered with Kementerian Kesihatan Malaysia, and given the license to practice in a registered Pharmacy. The license comes when he has a physical outlet – his pharmacy.
A REN is just like a dispenser in this pharmacy. Without the REA, there is no REN. Subsection 2A of Section 22C of VAEP Act, 1981 states:
“For the purpose of 2(d) “Negotiator” means a person who is employed (or engaged*) by a REA to assist him in the estate agency practice.”
*as per Standard 2, MEAS 2014
However, as REN are allowed to carry out most of the work of a REA (in the field), to the public, there is in fact, no difference.
It is like you go to a pharmacy, you are served by a dispenser (or anyone in the pharmacy), but you are happy with it. Many a time, you took the vitamin pack on the shelf without even listening to advice of the pharmacist or the dispenser (or anyone else). You just pay for it at the check-out counter.
Estate agency practice is roughly like that. You might not need any advice from the pharmacist or dispenser, and happy with it. A buyer of a property in a property expo does not really need anything but just put the booking fee for the property he likes in display. The price list is exhibited free for all; and brochures are left on the table to anyone who walks pass.
Tomorrow we will see when the differences appear…