As property agents are instrumental in helping you deal with the massive task of sourcing, acquiring and handling the paperwork for a property, it is only fair that they receive proper remuneration for their work.
Unfortunately, as many property seekers have attempted to subvert or get themselves out of having to pay a fair amount –and some estate agents who have been less than honest in their calculation for payment – the official government body, The Board of Valuers, Appraisers and Estate Agents Malaysia have established a rule on the fees payable.
For a sale or purchase of land, buildings as well as joint ventures, sale of company and property swaps, a maximum fee of 3% is imposed.
For chattels (personal property such as furniture, tools, etc.) including machinery, 10% of the proceeds is payable to the agent. This is a flat amount.
Any sale or purchase that occurs by way of tender, private treaty or any other mode of disposal or acquisition will adhere to the above rules.
Should you acquire an estate agent for sale and marketing projects however, the fees payable are not governed by the official body and are instead to be agreed between the client and the estate agent.
Furthermore, these fees do not apply to the sale of foreign properties in Malaysia or the sale of Malaysian properties on foreign soil.
If you hired an estate agent to find you a place to rent, the duration of your tenancy will determine the maximum fee you are expected to pay.
1. Up to 3 years: 1.25 months gross rental
2. Exceeding 3 years up to 4 years: 1.50 months gross rental
3. Exceeding 4 years up to 5 years: 1.75 months gross rental
4. Exceeding 5 years: 1.75 months gross rental
5. Exceeding 5 years without option for renewal: 1.75 months gross rental
6. Exceeding 5 years with option for renewal: 1.75 months gross rental including 0.25 months rental for every additional year
*(The above is not subjected and shall not be applied to serviced offices, apartments or premises of a similar nature)
The minimum fee is one month rental and can likely be negotiated with the agent so long as the ultimate payment does not exceed the established amounts. For tenancies that are less than one year however, the fee can be calculated on a pro rata basis.
Further fees include rent reviews which is 50% of the fees chargeable under the lettings and additional claims which may include;
1. Cost of printing
2. Plans
3. Copies of documents, travelling (only when the distance between the agent’s office and the property is more than 40km)
4. Lithography
5. Cost of media advertisements
6. Signboards
7. Brochures
8. Other promotional material.
These fees are consistent throughout all the states with the exception of Penang where both the owner and the buyer of the property must respectively pay 1% of the fee to the agent.
Source: propertyguru.com.my