STRATEGIES TO OVERCOME UNETHICAL ISSUES OF ESTATE AGENCY PRACTICES IN MALAYSIA

Abstract

The real estate sector contributes significantly to economic growth by providing investment opportunities that influence the social and financial environment worldwide. However, this industry has also faced ethical issues, particularly in estate agency practices, even though there are acts, rules, standards, and bodies governing real estate professionalism in Malaysia. This has vast implications for consumers and the real estate industry. Hence, this study aims to explore strategies and recommendations from the perspective of estate agents to improve estate agency practices and prevent such unethical behavior. To understand the strategies for unethical practices in the Malaysian real estate market, this research employs a qualitative approach involving semi-structured interviews with 15 participants from diverse Registered Estate Agent (REA) practices. This study identified eight strategies to overcome unethical issues of estate agents’ practices in Malaysia. This includes regular audits and inspections, encouragement for strict law enforcement, extended periods of comprehensive training, increased awareness through campaigns, limitations of Real Estate Negotiator (REN) recruitment, collaboration with community organizations, reporting mechanisms, and enhanced monitoring by REA. Accordingly, the real estate industry can apply these strategies to reduce unethical behavior and increase the ethics of real estate agents in Malaysia.