Posted on : 28 Nov 2019
The differences between REA and REN
Who are RENs? And Who are REAs? Are REAs the same as RENs?
Some people are confused between the two and may even think that they are the same. However, there is a difference between the two. Although both are involved in the real estate industry and may have some overlapping roles, they are actually different roles between the two.
REA stands for registered estate agent and REN on the other hand stands for real estate negotiator. Both are registered under the Board and both can assist clients to transact real estate deals. Here are a few key differences between the REA and the REN.
1. All negotiators need to work under a registered estate agent Only registered estate agents can set up an estate agency and recruit negotiators to work under them. Negotiators on the other hand must work for a registered estate agency and under the supervision of a registered estate agent ie a license holder. Upon closing a real estate / property transaction, negotiators only get a portion of the commission paid whereas the rest will go to the registered estate agent and company. The registered estate agent can choose to close their own property transactions and can get up to 100% of the total commission.
2. Starting Your Own Business One of the key differences between agents and negotiators is the fact that agents can start their own business. Negotiators will always be working under an agent/agency, whereas agents can set up their own estate agency or even operate on his own via a sole proprietor. This gives the estate agent much more flexibility to set his own schedule and do not need to be bound by any targets set by the estate agency.
3. Earning Passive Income Another advantage that comes with being an agent is that agents can gain a passive income from each successful transaction completed by negotiators working under them. This way, agents can focus on building up the business.
4. Quick start vs Specialized Knowledge Negotiators can enter the lucrative business of real estate with just the minimum of 2 days training. By attending the 2 days negotiator registration course offered by Good Institute, he can obtain the government certificate which will enable him to get a REN tag once he is registered with the Board under a licensed estate agency.
Estate agents are required to undergo a more specialized training ie the diploma course. This diploma covers 12 subjects ranging from estate agency laws and practice, property law, valuation, building technology and more trains the estate agent in all key areas of real estate. The specialized knowledge and experience gained is invaluable and is a great asset to a real estate agent in his dealings with his clients.
All in all, the path of a real estate agent has higher rewards compared to a negotiator. However, agents take time and effort to reach that pinnacle. You can learn more about how to join the industry as a REA or REN by contacting us. Good Institute is the leading provider of real estate courses in Malaysia and many of our students have become successful in their industry after completing their courses with us.
Good Institute Kuala Lumpur
E-10-04 (Level 4), Subang Square,
Jalan SS 15/3B, 47500 Subang Jaya,
Office Hours: +603 5880 5052
Good Institute Johor Bahru
42B, Jalan Sutera Tanjung 8/3,
Taman Sutera Utama,
81300 Johor Bahru, Malaysia
Tel: +607 562 2657
Hotline: +6012 558 2400