Professional Fee Payment Structure for Estate Agency Services
as per the Seventh Schedule of the Valuers, Appraisers and Estate Agents Act 1986
1. Sale or Purchase(a) Land and Buildings – Maximum Fee of 3%
(b) Fee for other services such as joint venture, sale of company, property swaps etc. – Maximum Fee of 3%
(c) Chattels including Plant and Machinery – 10% of the proceeds
(a) As above, subject to a minimum fee of RM 1,000 per property.
(b) The above scale applies to any sale or purchase by way of private treaty, tender or any other mode of disposal or acquisition.
(c) For sale and marketing of Projects by registered estate agents, the fees are to be agreed between the estate agent and the client.
(d) The above scale of fees shall not apply to the sale of foreign properties in Malaysia or sale of Malaysian properties in foreign countries.
2. Professional Fees – TenancyDurations of Tenancy / Lease Maximum (Fee equivalent to)
(a) Up to 3 years 1.25 months gross rental
(b) Exceeding 3 years up to 4 years 1.50 months gross rental
(c) Exceeding 4 years up to 5 years 1.75 months gross rental
(d) Exceeding 5 years (without option for renewal) 1.75 months gross rental
(e) Exceeding 5 years (with option for renewal) 1.75 months gross rental plus 0.25 months gross rental for additional year
(a) As above, subject to a minimum fee of 1 month rental.
(b) Rent Reviews – 50% of the fees chargeable under lettings.
(c) For tenancies less than one year, the fee may be calculated on pro rata basis.
(d) The above scale shall not apply to serviced offices or apartments or any other premises of a similar nature.
4. Additional ClaimsIn addition to the fees stated in items 1 to 3, claims may be made for:
(a) 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 then 40km) and other expenses actually incurred;
(b) The cost of media advertisements, signboards, brochures and other promotional material.
The above additional claims may not be incurred by the registered estate agent without the prior concurrence of the client.
A video courtesy of BOVAEA. Know the dangers of dealing with illegal brokers. Protect yourself. Always choose to deal with a registered negotiator.
More information can be found at http://propertyagent.gov.my/resource-centre/dangers-uncertified-negotiators/
In Malaysia, Real Estate industry is an industry under the purview of the Ministry of Finance. And to oversee the industry, BOVAEA was formed under the Act of Parliament - Values, Appraisars and Estate Agents Act 1981 (Act 242). The President of BOVAEA is the Director General (DG) of Valuation Services Department of JPPH. Other Board members includes representative from Valuation Department, Valuers, Estate Agents and Property Managers.
BOVAEA is established to regulate the activities of those registered under the Board (Valuers, Property Managers, Real Estate Agents). For Real Estate Agents (REA), they are individual who has passed part 1 and part 2 of the exam comprising 12 papers with law and finance subjects as main papers. After passing the exam, they are registered as a Probationary Estate Agent (PEA) and to serve under a registered Real Estate Agency for 2 years as a post-practical training. Once they completed their 2 years training, they will need to take the Test of Professional Competence (TPC) after which they passed, the will be registered as a Real Estate Agent. With the registration, they will be able to start and operate their own agency and provide services such as selling, renting or finding properties for their clients.
As a Real Estate Agent (REA), they are allowed to recruit 20 Real Estate Negotiators (REN) to represent the firm in providing real estate services to the clients. REN are not registered with the BOVAEA but they are certified to practice under the license of a REA. However, before they start working with clients, they are required to attend a full two days Real Estate courses. They will be given a certificate of attendance which they can use it to apply for a job with a Real Estate Agency. Once recruited, the REA will apply for a Tag from BOVAEA. Once BOVAEA certified the application, they will designate a REN ID and Tag to the REN and only by then the REN will be able to represent clients in any dealing of Real Estate activities. The REN is compulsory to wear his Tag all the time during their conduct of business. Those who did not wear the Tag or unable be verified as a REN will be considered as an illegal broker.
As an important notes, any person who acts in contravention of section 22(c) commits an offence under Section 30(i) of the Act and is liable upon conviction to a fine not exceeding RM300,000.00 or imprisonment for a term not exceeding 3 years or both. And any person who aids and abets in the commission of an offence under Section 30(j) of the Act, is committing an offence and is liable upon conviction to a fine not exceeding RM300,000.00 or imprisonment for a term not exceeding 3 years or both. For more information on how to verify a REN, you can visit www.lppeh.gov.my or call BOVAEA during office hours at +603-22876666.
REAL ESTATE NEGOTIATORS (REN) are employed by Registered Real Estate Agents (REA) and are ISSUED with an authority tag by the Board of Valuers, Appraisers & Estate Agents Malaysia (BOVAEA). Protect your real estate interest by not falling prey to brokers who are not qualified, lack the knowledge & skill to effectively represent you. They are not registered with the Board but they are certified to practice. Before they are employed by the Real Estate Agency, they are required to attend a full two days course on real estate and will be issued a certificate of attendance. With the certificate, they seek employment with a real estate firm which in return will apply for the REN ID and Tag with the BOVAEA. Upon receiving the application, BOVAEA will then certify and designate a REN ID and issue a Tag to the REN. After obtaining these, they REN will be able to represent sellers, landlords, buyers and tenants in the process of marketing of properties.
In any meeting with buyers/owners/landlords/tenants, it is mandatory for a negotiator to wear the REN Tag. It cannot be replaced with an company name tag and it is an offence for someone to imitate and produce something similar to BOVAEA REN Tag. With the tag, public members can rest assured that the person they are dealing with is certified and has the knowledge to represent you.
In the event if you are suspicious of the negotiator, you can always check or verify whether the REN is certified by the BOVAEA. You can conduct a search at www.lppeh.gov.my website. You can also scan the QR code using your smartphone. The QR code can be seen on the Tag and it contains all the negotiator information including their photograph. Alternatively you can also call BOVAEA during office hours at +603-2287666. If you come across someone with a fake REN Tag, stop the dealing immediately and report him to the police with full information.