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General Code of Conduct and Ethics for Registered Valuers, Appraisers andEstate Agents

Every registered valuer or appraiser or estate agent are duty bound to render service to

his client with absolute fidelity, and to practise his profession with devotion to the highideals of integrity, honour and courtesy, loyalty to his country, and also to conductbusiness in the spirit of fairness and goodwill to his fellow professionals in the realestate industry.

A registered valuer or appraiser who acts as an estate agent to a transaction should notsubsequently value the same property for the same purchaser.

All valuation reports must follow the format and guidelines issued by the Board fromtime to time.

No registered valuer, appraiser or estate agent shall, directly or indirectly, allow or agreeto allow participation by any person or company, other than a registered valuer,appraiser or estate agent in the profits of his professional work.

It is a duty of a registered estate agent to protect the public against fraud,misrepresentation and unethical practises in respect to all real estate transactions.

A registered valuer, appraiser and estate agent must inform his client of the nature ofany business connection , interest or other affiliations he may have in connection withthe service to the client.

A registered estate agent shall not accept fees from more that one client in any onetransaction.

A registered estate agent shall not act for one party to a transaction while anotherregistered estate agent from the same firm or related or affiliated firm, is acting for theother party to the same transaction except with the knowledge and consent of theparties concerned.

A registered estate agents name and signature must appear on all proposals, reportsand other documentation prepared by him indicating his status as a registered estateagent.

A registered valuers, appraisers and estate agents branch offices shall be headed bya resident registered valuer or appraiser or estate agent.

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Professional fees generally(1) A registeredvaluer who makes a valuation must not charge, for thevaluation, a fee--

(a) based on a stated outcome; or(b) that might reasonably be expected to prejudice the valuer's

advice as an independent expert.

(2) A registered valuer must, if asked by a client, give the client informationabout the way in which a fee charged for a valuation is calculated.

14 No contingency fees(1) A registered valuer who makes a valuation that may be used to decide theamount of compensation to be paid to a person, must not--

(a) make payment of the fee for the valuation contingent on theamount of compensation; or(b) fix a fee for the valuation as a percentage of the amount of

compensation.(2) A registered valuer who makes a valuation to be used to decide the rates orother charges to be levied on land, must not make payment of the fee for thevaluation contingent on the result of a proceeding about the correctness of thevaluation.

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2. Submission to the Securities Commission, Central Bank of Malaysia andplant and machinery valuation services.

3/8% on the first RM100,000

3/10% on the residue up to RM2 million






1/20% on the residue over RM500 million

Minimum Fee :Subject to a minimum fee of RM2,000 per property.

3. Fee for other capital valuation/rating valuation services based on an"Improved Value" basis

1/4% on the first RM100,000


1/6% on the residue up to RM7 million1/8% on the residue up to RM15 million




1/25% on the residue over RM500 million

Minimum Fee:Subject to a minimum fee of RM400 per property.

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4. Fee for rental and rating valuation services

7% on the first RM6,000 of annual rental

4% on the next RM12,000 of annual rental

3% on the next RM24,000 of annual rental

2.5% on the next RM120,000 of annual rental

1.5% on the next RM838,000 of annual rental

1% on the residue over RM1,000,000 ofannual rental

Minimum Fee:Subject to a minimum fee of RM400 per property.

5. Fee for mass valuation services for local authorities

RM45 per holding of the first 30,000 buildings

RM40 per holding for the next 20,000 buildings

RM35 per holding for the balance

Minimum Fee:The above fee is inclusive of all costs, except for the additional claims for attendanceat objection meetings and judicial hearings and a minimum fee of RM400 per case.

5A. Fee for update valuation

For all update valuations carried out under the Malaysian Valuation Standardspublished by the Board, the fee payable shall be at a minimum of 15% of theappropriate scale of fees or RM400 per property, whichever is higher.

5B. Fee for revaluations

For revaluations carried out under the Malaysian Valuation Standards published bythe Board, the fee payable shall be at a minimum of 30% of the appropriate scale offees or RM400 per property, whichever is higher.

5C. Fee for retrospective valuations

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Fees up to ten times the scale fees may be charged depending on negotiations withthe client. However, such valuations shall not apply to land acquisition valuations.

Such valuations shall be retrospective to at least 5 years from the current date.

6. Additional Claims

In addition to the fees stated in items 1 to 5C, claims may be made for -

(a) the cost of printing, plans, copies of documents, lithography, travelling and otherexpenses actually incurred;

(b) a fee of RM150 per hour or RM800 per working day of 8 hours for negotiations,attendance at meetings with solicitors, consultants or authorities;

(c) a fee of RM200 per hour or RM1,000 per working day of 8 hours for giving

evidence before judicial bodies;

(d) Additional works done in preparation for negotiations and court attendance

Note:

(1) The fees stated in items 6(a) to 6(d) are chargeable for actual appearance atmeetings or before judicial bodies. In the case of postponement, adjournments, etc.(where less than 24 hours is given), a minimum fee of RM400 is chargeable if themeeting or judicial appearance is in the same town/city as the location of the practiceand a minimum fee of RM800 is chargeable if the meeting or judicial appearance is

outside the location of the practice.

(2) The claims and fees in items 6(a) to 6(d) with respect to land acquisition valuationshall not be claimed against the Land Administrator

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Section 66.

professional fees

a registered valuer or apparaiser is under act 1981 (act 242) may accept in respect of

his professional work any fee more than that prescribed for that work by the scale of

fees specified in seventh schedule with the written concert of the board.

Section 67

Fee contingent on result

No registered valuer or appraiser shall charge impose or claim any fees or remuneration

for professional work the amount of which is contingent the findings or the result of such

professional work

(a) Where the value of property in respect of which the professional work is done

has yet to be determined and

(b) Where case any court or under arbitration, or a dispute affecting the finding of

result of the professional work done is pending

If a valuer were to accept an engagement for which the amount of his compensation iscontingent upon the amount of an award in a property settlement or a court actionwhere his services are employed; or is contingent upon the amount of a tax reductionobtained by a client where his services are used; or is contingent upon theconsummation of the sale or financing of a property in connection with which hisservices are utilized or is contingent upon his reaching any finding or conclusionspecified by his client; then, anyone considering using the results of the valuersundertaking might well suspect that these results were biased and self-serving andtherefore, invalid. Such suspicion would militate against the establishment andmaintenance of trust and confidence in the results of valuation work, generally;therefore the Institute declares that the contracting for or acceptance of any suchcontingent fee is unethical and unprofessional.

As a corollary to the above principle relative to contingent fees, the Institute declaresthat it is unethical and unprofessional for a valuer (a) to contract for or acceptcompensation for valuation services in the form of a commission, rebate, division ofbrokerage commissions, or any similar forms and (b) to receive or pay finders orreferral fees.

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Section 68Payment of commission

For this section, the registered valuer is a power to received the amount from the clientand must to pay to registered valuer or appraiser.

Section 69Receipt of payment from more than one sourcesCompensation or payment whether financial or otherwise, may be accepted from morethan one source. The payment is to be a respect of a particular of services only if theintention to accept such as compensation or payment has disclosed to all parties andthe written consent of all the parties has been obtained by registered valuer orappraisers in a single document.

Section 70Participation of others in profits.

No registered valuer or appraiser shall, directly or indirectly, allow or agree to allowparticipation by any other persons, not being a registered valuer, appraiser, or estateagent in the profit of profession work.

Section 71

Profession work by registered valuer or appraiser in employment.

A registered valuer or appraiser shall follow the guide and respect the profession workwhich is in the employment of valuation firm, there are not to accept the profession workon his own account and shall not be gainfully employed elsewhere

And. In this section, a registered valuer or appraiser shall not, without the prior writtenapprovalof the board be gainfully employed in activities other than valuation or appraisalwork.

Also the registered valuer or appraiser in the employment of non-valuation employmentfirm shall not maintain a valuation or appraisal firm.

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