Strengthened by its strategic location, growing economy, and diverse property landscape, the real estate industry in Malaysia offers a rewarding career path for aspiring Real Estate Agents. If you want to pursue this career, you’ll need to follow a standard process that includes getting an education, practical training, and some hands-on experience. You’ll also need to continuously update your skills throughout your career to maintain your licence.
If you’re looking to become a Real Estate Agent in Malaysia, you’re in the right place. This article will guide you through a step-by-step process to becoming a Real Estate Agent in Malaysia. Read on to learn more.
Step-by-step guide on how to become a Real Estate Agent in Malaysia
The Board of Valuers, Appraisers, Estate Agents, and Property Managers (BOVAEA) in Malaysia ensures all estate agents are properly trained and licensed to conduct real estate transactions. Therefore, you must follow a specific set of procedures and meet certain requirements to obtain a Real Estate Agent licence in Malaysia. Here’s a step-by-step process to becoming a Real Estate Agent in Malaysia:
Step 1. Meet the basic requirements
The basic requirements of becoming a Real Estate Agent are quite simple.
You must be a Malaysian citizen or a permanent resident and at least 17 years old to be eligible for a Real Estate Agent licence. Furthermore, the minimum academic qualification is at least SPM level, or its equivalent, with a minimum of 5 credits, including in Bahasa Malaysia.
If you’re a foreigner, you must have a valid visa and permit to work in Malaysia. This typically requires sponsorship from a Malaysian real estate agency. Also, you should also have education qualifications recognised by BOVAEA.
Foreigners can work as Real Estate Negotiators. However, becoming a registered estate agent and owning and managing a real estate agency might not be possible without a permanent residency.
Step 2. Pass the The Estate Agent’s Written Examination Part I & II or obtain a recognised qualification
The next step is to obtain a recognised real estate certification. You’ll need an academic degree in property related courses, such as real estate or property management, or you’ll need to pass The Estate Agent’s Examination Part I and II conducted by BOVAEA.
It’s recommended that you obtain a Diploma in Estate Agency beforehand to prepare for the examination. Refer to this page for official information on The Estate Agent’s Examination Part I and I by BOVAEP.
If you’re taking the academic certification route, your qualifications should be valid for REA registration. Therefore, the courses and certifications you obtain must be offered by institutions recognized by BOVAEA. You can find the list of recognised institutions and qualifications on the official BOVAEA website.
Lastly, there may also be an alternative, experience-based pathway to becoming a Real Estate Agent in Malaysia without getting a recognised qualification. For this, you’ll first need to become a Real Estate Negotiator (certified REN) and gain at least 5 years of professional real estate experience. We’ll discuss the difference between a Real Estate Agent and Real Estate Negotiator later.
Step 3. Register as a Probationary Real Estate Agent (PEA)
After completing the course and obtaining your certifications, it’s time to register yourself as a probationary estate agent at BOVAEA. The PEA period lasts for a minimum of two years. During this period, you’ll undergo professional training supervised by a certified Real Estate Agent.
Applying for a PEA licence includes submitting an application form along with supporting documents. The supporting documents you should attach include:
- Certified copies of academic qualifications, including diplomas, degrees, and transcripts from your educational program,
- Identification documents (usually a certified copy of your identity card (MyKad) or passport if you are a permanent resident,
- Recent passport-sized photograph,
- Payment receipt for the registration fee, and
- Any additional documents required by BOVAEA, such as a character reference or a declaration of non-bankruptcy status.
The PEA registration fee can be paid through bank drafts, online banking, or other payment methods BOVAEA accepts. Keep a copy of the payment receipt, as you will need to submit this as part of your application.
You can obtain the PEA registration form from BOVAEA’s official website or their office. Submit your completed application form with all the required documents and proof of payment to BOVAEA. This can be done by mail (to BOVAEA’s address) or in person by submitting directly at BOVAEA’s office.
After submission, BOVAEA will review your application and, in some cases, may ask for an interview or additional information.
Once your application is approved, You’ll receive a PEA number. This number is your official registration as a Probationary Estate Agent. You’ll also receive a certificate or letter confirming your PEA registration.
Step 4. Gain practical experience
With a PEA certificate, you can now start the mandatory probationary period and gain the necessary experience required to qualify for the Test of Professional Competence (TPC) and then apply for a Real Estate Agent licence.
During your PEA probation, you’ll engage in practical and on-the-job training under the guidance of a licensed Real Estate Agent. The training involves hands-on experience in various aspects of real estate, including real estate sales, leasing, negotiating, marketing, and understanding of the regulatory framework that governs real estate in Malaysia.
Your progress will be monitored by your supervising Real Estate Agent. Expect regular feedback and assessments that ensure you’re on track with the learning objectives set by BOVAEA.
Throughout this period, you should maintain a logbook to document your experience, including the tasks you perform, transactions you make, and the knowledge you gain. Your logbook will be reviewed during your application for the Test of Professional Competence (TPC). Passing the test is necessary to apply for your real estate licence.
If you fail to adequately gain the necessary experience within the two-year period, you can apply for an extension. The extension will be granted by BOVAEA depending on your circumstances and progress.
Here are some important considerations you should keep in mind during this period:
- Be consistent and engage actively in learning during the PEA period to ensure you meet all requirements for the TPC.
- Your logbook will be scrutinised during your TPC assessment. Therefore, keep it up-to-date and ensure all entries are accurate and detailed.
- Having a supportive supervising agent is important. Therefore, maintain constant communication and good relationship with your supervisor.
Step 5. Pass the Test of Professional Competence (TPC)
With adequate professional experience, you can now apply for the Test of Professional Competence (TPC). TPC is the final and critical step before applying for your Real Estate Agent licence. Passing the test ensures you’re qualified and capable of providing professional, as well as ethical, real estate service.
Consider obtaining a copy of BOVAEA’s Rules & Guidelines to the Test of Professional Competence for the Estate Agency Practice to prepare for this test.
Here’s a step-by-step process to taking the TPC:
- Ensure eligibility by completing the mandatory two-year probationary period as a PEA and keeping a logbook documenting your work experience, transactions, and learning outcomes during the period.
- Pay examination fees.
- Prepare required documents (typically the application form, certified copies of PEA registration, logbook, proof of completion of probationary period, identification documents, passport-size photographs, and TPC examination fee payment receipt).
- Fill out the TPC application form. You can download the form from the official BOVAEA website or collect it physically from BOVAEA offices.
- Submit the Application to BOVAEA by mail or in person. Don’t forget to attach all the necessary documents with your application. Also, make sure you receive a confirmation from BOVAEA acknowledging the receipt of your application.
- Wait for the examination notification. BOVAEA will shortly notify you of the examination schedule, including the date, time, and location of the written exam and interview.
- Attend the TPC Examination. You’ll be taking two types of examination: written and interview (viva voce).
BOVAEA will notify you of the results in the following days after you’ve taken the examination. If you pass, you can proceed to apply for your Real Estate Agent licence. If you fail to pass the TPC, BOVAEA will provide feedback on the areas that need improvement and guide you on the steps to retaking the examination.
Step 6. Apply for a Real Estate Agent Licence
Once you’ve passed the TPC, you can apply for your Real Estate Agent licence from BOVAEA. For this, you’ll again need to pay a certain amount of processing fee and fill out the application form and submit it to BOVAEA. Make sure you have all the required documents attached, including your proof of professional experience, examination results, and other relevant credentials.
BOVAEA will review your application and issue you a real estate licence. In rare cases, you may need to provide additional evidence.
Here are some key points to remember after receiving your REA licence:
- Compliance with BOVAEA standards: You must comply with professional and ethical standards set by BOVAEA even after obtaining your REA licence. This includes fulfilling annual Continued Professional Development (CPD) obligations and adhering to real estate laws and regulations.
- Licence renewal: REA licence should be renewed periodically. You’ll always need to keep track of the renewal requirements, including renewal fee payments and completion of any mandatory professional development activities.
- Professional conduct: As a licensed REA, you should maintain high standards of professional conduct, ensuring that you provide ethical, competent, and reliable services to your clients.
Step 7. Continuing Professional Development
As a licensed Real Estate Agent, you must participate in annual professional development courses to maintain your Real Estate Agent license and keep updated with industry regulations and practices of Malaysia.
CPD is the process of continually improving and updating professional skills and knowledge throughout your professional real estate career. Meeting CPD obligations is a mandatory requirement set by the BOVAEA. It involves engaging in practical training and activities that enhance and update your knowledge of real estate laws, ethics, market analysis, negotiation skills, technology, client management, and more.
You should complete your CPD training through BOVAEA-approved training providers annually. This accreditation is also a requirement for renewing your REA licence every year. You can refer to the official BOVAEA website for a list of recognised CPD courses and providers before enrolling in a course.
Plan for your CPD course early to avoid last-minute rush. Late registration can lead to overbooked sessions and unnecessary stress.
The difference between a Real Estate Agent (REA) and Real Estate Negotiator (REN)
Real Estate Agent (REA) and Real Estate Negotiator (REN) are two different professions within the Malaysian real estate industry. Their roles are distinct and governed by specific regulations under Malaysian law (the Valuers, Appraisers, Estate Agents, and Property Managers Act 1981 (Act 242) and the rules under the Act). Here’s a detailed breakdown of the differences between the two:
| Real Estate Agents | Real Estate Negotiators | |
| Definition | Real Estate Agents are fully licensed professionals who have undergone formal training and passed the relevant examinations conducted by BOVAEP. | Real Estate Negotiators work under the supervision of a licensed Real Estate Agent. They do not hold a full estate agent licence. |
| Process | Step 1. Complete a recognised Diploma or Degree in Estate Agency and have a minimum of two years of practical experience under a licensed real estate firm. Step 2. Apply for a licence to practise as an estate agent. | Step 1. Attend a two-day Negotiator Certification Course (NCC) and register with BOVAEP through their employer (a licensed Real Estate Agent) to qualify as a REN. Step 2. Receive a REN tag with a unique REN number, which allows professional activities. |
| Roles and Responsibilities | A registered estate agent can run their own real estate agency, hire Real Estate Negotiators, and provide almost all property-related services, including sales, leasing, and property management. Real Estate Agents can sign legal agreements on behalf of their clients and are accountable for all transactions that occur under their agency. They are allowed to act independently or manage a team of negotiators. | Real Estate Negotiators handle regular day-to-day tasks including showing properties, negotiating prices, and managing client relationships. They can’t operate independently. They can’t sign legal agreements or act on their own in official transactions. All their deals must be overseen by the licensed agent or agency they work for. |
| Legal standing | Real Estate Agents hold an E-licence issued by BOVAEPThey are fully responsible for the compliance of their real estate agency, its negotiators, and property managers. | Real Estate Negotiators don’t have an independent licence but operate under the Real Estate Agent’s licence. Their actions are the responsibility of the licensed agent who supervises them. REN tags serve as their authorisation to work. |
| Fees and commissions | Licensed agents can set fees for their services within the guidelines provided by BOVAEA. They are also liable for their income and financial management. | Real Estate Negotiators earn commissions from transactions but do not set fees independently. |
Conclusion
Becoming a Real Estate Agent in Malaysia is more than just a career choice. It’s a lifetime commitment to continuous learning, ethical practice, and a dedication to serving clients with the highest level of professionalism. The journey to licensure equips you with the technical knowledge as well as soft skills needed to build relationships with your clients. As a property agent, you should embrace lifelong learning to continuously refine your expertise.
