Changes to Act are not about increasing fees
The Star 30/11/2006

WE would like to clarify some of the points raised by the group who opposed the proposed amendments to the Valuers, Appraisers and Estate Agents Act 1981, “High anxiety” (The Star, Nov 27).

It is incorrect to say that with the proposed amendments, high-rise unit owners will have to pay higher maintenance fees of 30%-40% (actually referring to management fees).

Even with the proposed amendments, the management fees will be the same, if not lower as all the money for the management of the building will be accounted for, including the sinking fund.

We have been given to understand that the proposed amendments are about opening up the property management profession and not about increasing fees.

It is also incorrect to state that registered property managers may farm out actual work to unregistered parties.

All the practising property managers currently registered under the Board of Valuers, Appraisers and Estate Agents Malaysia, many of whom are members of the Association of Valuers & Property Consultants in Private Practice Malaysia (PEPS), are professionally qualified and have relevant property management experience to practise property management.

Hence, there is no necessity for us to farm out actual work to unregistered parties unless they are referring to some of the services such as security, common cleaning, pest control, mechanical and electrical servicing and maintenance that we, as property managers, sub-contract to specialists.

The board has power to discipline registrants for breach of its rules and farming out the work to people who are not registered with the board is one of the breaches, which will be subject to discipline by the board.

Hence, owners of buildings are better protected under the proposed amendments.

It is not true that property management will be monopolised by property valuers.

Although admittedly registered valuers with their professional qualification, training and experience are most qualified to do property management under the proposed amendments, there will be a register for property managers to accommodate various classes of people with different levels of qualifications and competency in property management.

Hence, architects, engineers and property managers currently not registered with the board can apply to be registered to practise property management, provided they have achieved certain level of training and competency in the property management of the type of property that they are currently doing.

The law as it now stands only provides for “registered persons” to practise property management.

With the proposed amendments, it will, in future, open up to more parties and professionals who wish to register with the board to practice property management, subject to relevant qualifications and experiences.

JAMES WONG,
President,
The Association of Valuers & Property Consultants in Private Practice Malaysia,
Kuala Lumpur.