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What you should know before engaging a property agent in Sarawak?

Part 2/2

🔸How much your property agent will charge for their commission or agency fees?

▪️Sale or Purchase

Based on the Seventh Schedule (RULE 48) of Valuers, Appraisers, Estate Agents and Property Management Rules 1986, property agent is eligible to charge a maximum fee of 3% on your transacted price. This applies for the sale or purchase of land and buildings and other services rendered by the firm, such as a joint venture, sale of company and property swap.

For chattels including plant and machinery, a fee of 10% on the proceeds is chargeable.

However, all the above are subject to a minimum fee of RM 1,000 per property. It 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 are to be agreed between the estate agent and the client.

The above scale of fess shall not apply to the sale of foreign properties in Malaysia or sale of Malaysian properties in foreign countries.

▪️Lettings or Rent

Duration of Tenancy Maximum (Fee equivalent too)

➡️ 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 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, claims may be made for:

1. 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;

2. 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. *the fees structure above are directly taken from BOVAEAP home page.

🔸The types of estate agency appointment

“It is important for the client, the estate agent and any other related third party to be aware of the different types of estate agency appointment under which properties are listed, sold, purchased, let or rented through estate agents.“

——– Malaysia Estate Agency Standards 3

The various type of estate agency appointments are as follows : –

1) Exclusive agent – Only one agent is appointed. If owner found a buyer, the agent will get involved in the dealing too. The agent will also entitle for his/her fees.

2) Sole agent – Only one agent is appointed and the owner reserves the right to sell on his/her own. The agent will not entitle for his/her fees.

3) Joint agency – Two or three agents are appointed to sell. Whoever successfully sold the property, he/she will get the fees.

4) Ad hoc / General – Any number of agents can be appointed to sell and all appointments are to be in writing. Whoever successfully sold the property, he/she will get the fees.