The article “The Paradox of the REN: A Look at Real Estate Negotiator (REN) Practices in Malaysia” examines the role and practices of Real Estate Negotiators (RENs) in Malaysia, highlighting significant ambiguities surrounding their responsibilities and ethical conduct. Conducted by Kien Hwa Ting and Zarita Ahmad Baharum, the study stemmed from a focus group discussion that revealed issues such as misrepresentation of property details, inflated prices, and deceptive marketing practices among RENs, who are primarily responsible for facilitating property transactions.
Despite RENs being essential intermediaries in the real estate market, they face scrutiny due to minimal training requirements—only a two-day certification course and registration with the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP). This low barrier to entry raises concerns about the quality of service and potential unethical practices. The introduction of the REN Tag system aimed to enhance transparency, but its effectiveness is compromised by inadequate vetting processes, allowing unethical individuals to infiltrate the profession.
The paper calls for stronger ethical measures, including awareness campaigns and stricter disciplinary actions, to improve the integrity of REN practices and safeguard the reputation of the real estate profession in Malaysia.
CONCLUSION
The current state of REN practice in Malaysia presents a paradox. While RENs are essential players in the real estate market, their minimal obligations, the issues surrounding REN Tags, and the lack of defined roles create an environment susceptible to unethical practices. Addressing these challenges through stricter regulations, clearer roles, and a relentless focus on ethical conduct is vital to unlocking the true potential of RENs and ensuring a robust and trustworthy real estate market in Malaysia.
Author by:
Huzaifah Hatimbhai
Councillor
