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

Estate 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 high
ideals of integrity, honour and courtesy, loyalty to his country, and also to conduct
business in the spirit of fairness and goodwill to his fellow professionals in the real
estate industry.

A registered valuer or appraiser who acts as an estate agent to a transaction should not
subsequently value the same property for the same purchaser.

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

No registered valuer, appraiser or estate agent shall, directly or indirectly, allow or agree
to 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 of
any business connection , interest or other affiliations he may have in connection with
the service to the client.

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

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

A registered estate agent’s name and signature must appear on all proposals, reports
and other documentation prepared by him indicating his status as a registered estate
agent.

A registered valuer’s, appraiser’s and estate agent’s branch offices shall be headed by
a resident registered valuer or appraiser or estate agent.
Professional fees generally
(1) A registeredvaluer who makes a valuation must not charge, for the
valuation, 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 information
about 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 the
amount of compensation to be paid to a person, must not--
(a) make payment of the fee for the valuation contingent on the
amount 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 or
other charges to be levied on land, must not make payment of the fee for the
valuation contingent on the result of a proceeding about the correctness of the
valuation.
Professional Fees: Valuation

1. Fee payable by the Land Administrator under the Land Acquisition Act 1960
[Act 486]

From To Fees
(RM) (RM) (RM)
1 50,000 1,500
50,001 500,000 2,500
500,001 1,000,000 3,500
For awards greater than RM1,000,000 the fee shall be a minimum of RM3,500 plus
the fee based on the following rate:

From To Rate
(RM) (RM) (%)
1,000,001 2,000,000 6/25
2,000,001 7,000,000 5/25
7,000,001 15,000,000 3/20
15,000,001 50,000,000 3/50
Any amount over - 6/250
50,000,000
The fees payable shall be based on the amount awarded by the District Land
Administrator. The fees shall be payable upon submission by the person claiming
compensation of a valuation report prepared by a registered valuer or appraiser in
accordance with the guidelines issued by the Board for the valuation report. The fees
do not include disbursements or fees for work done in preparation for negotiations and
court attendance.

2. Submission to the Securities Commission, Central Bank of Malaysia and plant

and machinery valuation services.

3/8% on the first RM100,000

3/10% on the residue up to RM2 million
1/4% on the residue up to RM7 million
3/16% on the residue up to RM15 million
3/20% on the residue up to RM50 million
1/10% on the residue up to RM200 million
1/15% on the residue up to RM500 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

1/5% on the residue up to RM2 million
1/6% on the residue up to RM7 million
1/8% on the residue up to RM15 million
1/10% on the residue up to RM50 million
1/15% on the residue up to RM200 million
1/20% on the residue up to RM500 million
1/25% on the residue over RM500 million
Minimum Fee:
Subject to a minimum fee of RM400 per property.

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 of
annual 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 attendance
at 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 Standards
published by the Board, the fee payable shall be at a minimum of 15% of the
appropriate scale of fees or RM400 per property, whichever is higher.

5B. Fee for revaluations

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

5C. Fee for retrospective valuations

Fees up to ten times the scale fees may be charged depending on negotiations with
the 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 other
 expenses 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 at
meetings 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 the
meeting or judicial appearance is in the same town/city as the location of the practice
and 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 valuation
shall not be claimed against the Land Administrator

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 is
contingent upon the amount of an award in a property settlement or a court action
where his services are employed; or is contingent upon the amount of a tax reduction
obtained by a client where his services are used; or is contingent upon the
consummation of the sale or financing of a property in connection with which his
services are utilized or is contingent upon his reaching any finding or conclusion
specified by his client; then, anyone considering using the results of the valuer’s
undertaking might well suspect that these results were biased and self-serving and
therefore, invalid. Such suspicion would militate against the establishment and
maintenance of trust and confidence in the results of valuation work, generally;
therefore the Institute declares that the contracting for or acceptance of any such
contingent fee is unethical and unprofessional.

As a corollary to the above principle relative to contingent fees, the Institute declares
that it is unethical and unprofessional for a valuer (a) to contract for or accept
compensation for valuation services in the form of a commission, rebate, division of
brokerage commissions, or any similar forms and (b) to receive or pay finder’s or
referral fees.

Section 68
Payment of commission
For this section, the registered valuer is a power to received the amount from the client
and must to pay to registered valuer or appraiser.

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

Section 70
Participation of others in profits.

No registered valuer or appraiser shall, directly or indirectly, allow or agree to allow

participation by any other persons, not being a registered valuer, appraiser, or estate
agent 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 work
which is in the employment of valuation firm, there are not to accept the profession work
on his own account and shall not be gainfully employed elsewhere

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

Also the registered valuer or appraiser in the employment of non-valuation employment

firm shall not maintain a valuation or appraisal firm.