Broker, Negotiator vs Agency principal. Who is right, who is “Verified”? Part 3.
Why can’t an illegal agent claim commission from his principal?
Take for example, drug trafficking is illegal in Malaysia. Can you as an agent “of drug trafficking” go to Court and file a claim against your boss who refused your commission?
Even when the boss agreed to paying you commission, you will be charged in Court for the crime of trafficking drug, right? Nobody would do that, correct?
Same applies to this illegal agents. If the principal refuses to pay them commission, they cannot do anything! Whereas, a legally appointed agent can apply the law in this context.
A Registered Estate Agent is prescribed by the Valuers, Appraisers, Estate Agents and Property Managers Act, 1981 (Act 242) as in Section 22B and Section 22C, to practice Estate Agency; recovery of fees by the REA is spelled out pursuant to S.22C (1) (d) as extracted below.
S.22C (1) (d) be entitled to recover in any court any fees, commissions, charges or remuneration for any professional advice or services rendered as an estate agent.
Hence, a legally appointed agent has the legal avenue to recover his fees for work done on his appointment.