Property Agent Commission

scale of Property Agent Commission or Professional Fees

Below is the scale of Property Agent Commission or Professional Fees (In accordance with the Seventh Schedule of Valuers, Appraisers and Estate Agents (Amendment) Rules 2009).

Sale or Purchase

1. Land and Buildings.
   • Maximum fee of 3%.
2. Fees for other services such as joint venture, sale of company, property swaps, etc.
   • Maximum fee of 3%.
3. Chattels including Plant and Machinery.
   • 10% of the proceeds.
   • Minimum fee: As above, subject to a minimum fee shall be RM1,000 per property.

The above scale applies to any sale or purchase by way of private treaty, tender or any other mode of disposal or acquisition.
For Sale and Marketing of projects by registered estate agents, the fees or property agent commission are to be agreed between the estate agent and the client.
The above scale of fees or property agent commission shall not apply to the sale of foreign properties in Malaysia or sale of Malaysian properties in foreign countries.

Lettings

Duration of Tenancy	Maximum Fee
Up to 3 years	1.25 months gross rental
Exceeding 3 years up to 4 years	1.50 months gross rental
Exceeding 4 years up to 5 years	1.75 months gross rental
Exceeding 5 years	1.75 months gross rental
Exceeding 5 years (without option for renewal)	1.75 months gross rental
Exceeding 5 years (with option for renewal)	1.75 months gross rental plus 0.25 months rental for every additional year

Minimum fee : As above subject to a minimum fee of 1 month rental.

For tenancies less than one year, the fee or property agent commission may be calculated on a pro rata basis. The above scale shall not apply to serviced offices or apartments or any other premises of a similar nature.

Rent Reviews

50% of the fees chargeable under lettings.

Additional Claims

In addition to the fees stated in items above, claims may be made for:

• The cost of printing, plans, copies of documents, lithography, travelling (only where the distance between the estate agent’s office and the property is more than 40 km) and other expenses actually incurred.
• The cost of media advertisements, signboards, brochures and other promotional material.

Note : The above additional claims may not be incurred by the registered estate agent without the prior concurrence of the client.

Conclusion

The profession of real estate agents is regulated just like other professionals. The property agent commission or fee structure is regulated by The Board of Valuers, Appraisers, Estate Agents, and Property Managers (LPPEH). You may like to our read Blog for more information and FAQ about real estate, property valuation, and property management in Malaysia.