Professional Fee Payment Structure for Estate Agency Services

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

Minimum Fee:
(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

Minimum Fee:
(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.


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


source: http://propertyagent.gov.my/professional-fee-payment-structure/