“Your lawyer fee so expensive…it is okay, I will just get my real estate agent to do the tenancy agreement for me, she said she can do it as part of her package” the prospective client said to me upon seeing the fee quote that I provided for the drafting of a tenancy agreement.
This conversation may sound familiar – either you are on the receiving end or you are the landlord saying it to the lawyer who had quoted his/her fees.
However, do you know that tenancy agreement, being a legal document must be prepared by a practising lawyer and not a real estate agent?
Section 37(2) of the Legal Profession Act 1976 (LPA) provides that:
Any unauthorized person who either directly or indirectly prepares any document or instrument relating to any immovable property shall, unless he proves that the act was not done for or in expectation of any fee, gain or reward, be guilty of an offence under this subsection.
It is to be noted that a person whose name is not on the roll of advocates and solicitors of the High Court and does not have a valid practising certificate is deemed to be an “unauthorised person” under the LPA[1].
That being so, real estate agents, are unauthorised person(s) under the LPA. The preparation of tenancy agreements by real estate agents as part of their service amounts to unauthorised practise of law and therefore illegal.
The governing body of real estate agents, the Board of Valuers, Appraisers, Estate Agents and Property Managers issued a notification in March 2024 to remind real estate agents that preparation of tenancy agreements should only be done by qualified lawyers[2].
As a tenancy agreement defines the rights and obligations of the parties in a landlord-tenant relationship, the preparation of the same ought not to be taken lightly. It is best left in the hands of a qualified lawyer, to safeguard your interests.
[1] Section 36(1) of the LPA
[2] https://lppeh.gov.my/WP2016/notification-3-2024-preparation-of-tenancy-agreement/
About the Author
Poon Wei Ying is a Senior Associate of XK Law who graduated with First Class Honours from the Cardiff University, United Kingdom. She believes in giving back to the society and that education can change a person’s life.
