"Agents charge 3%." Most Malaysian sellers have heard it, and most treat it as a fixed price.
Three per cent is the legal ceiling for a sale of land and buildings, set by the Board's scale of fees, and the fee you pay is agreed within it. Rentals follow a separate scale measured in months of rent. Below is the full scale, five worked examples, and the extras an agent can and cannot add.
Key regulatory takeaways
- Sale or purchase of land and buildings: maximum 3%, minimum RM1,000 per property (Seventh Schedule, Rule 48, Part C).
- Lettings: maximum 1.25 months' gross rent for tenancies up to 3 years, rising to 1.75 months; minimum one month's rent.
- Rent review: 50% of the lettings fee. Chattels, including plant and machinery: 10% of proceeds.
- Advertising and other extras need the client's prior agreement.
What is the maximum agent commission for selling a property in Malaysia?
Under the Board's scale of fees (Seventh Schedule, Rule 48), a registered estate agent may charge a commission of at most 3% of the price for the sale or purchase of land and buildings, with a minimum fee of RM1,000 per property. Fees for marketing development projects are agreed separately.
The 3% ceiling also covers joint ventures, sale of a company and property swaps. It applies whether the property is sold by private treaty, tender or any other method. Three exceptions:
- For sale and marketing of development projects by registered estate agents, the fee is agreed between the agent and the client.
- The scale does not apply to the sale of foreign properties in Malaysia.
- It does not apply to the sale of Malaysian properties in foreign countries.
How much is the agent fee for renting out a property?
For a tenancy of up to three years, the maximum is 1.25 months' gross rent. It rises to 1.50 months for tenancies over three and up to four years, and 1.75 months beyond four years. The minimum fee is one month's rent, and tenancies under a year may be pro-rated.
| Length of tenancy | Maximum fee |
|---|---|
| Up to 3 years | 1.25 months' gross rental |
| Over 3 years, up to 4 years | 1.50 months' gross rental |
| Over 4 years, up to 5 years | 1.75 months' gross rental |
| Over 5 years, no option to renew | 1.75 months' gross rental |
| Over 5 years, with option to renew | 1.75 months plus 0.25 months' rental for every additional year |
The lettings scale does not apply to serviced offices, serviced apartments or similar premises.
How much would I pay on a typical sale or rental?
At the legal maximum, selling a RM500,000 condominium costs RM15,000 in agency fees and a RM1.2 million house RM36,000. Renting out a unit at RM2,000 a month on a two-year tenancy costs at most RM2,500 and at least RM2,000. Fees can be agreed lower within the scale.
| Transaction | Calculation | Maximum fee |
|---|---|---|
| Sale of a RM500,000 condominium | 3% × RM500,000 | RM15,000 |
| Sale of a RM1.2 million landed house | 3% × RM1,200,000 | RM36,000 |
| Sale of a RM25,000 plot of land | 3% = RM750, below the minimum | RM1,000 (minimum fee) |
| 2-year tenancy at RM2,000 a month | 1.25 × RM2,000 | RM2,500 (minimum RM2,000) |
| 4-year tenancy at RM10,000 a month | 1.50 × RM10,000 | RM15,000 |
The actual fee is whatever you agree in your appointment with the firm. It can be lower than the ceiling, but never above it and never below the minimum.
Want a registered estate agent? Search the PEPS Members' Directory.
How much is the fee for a rent review?
Half the lettings fee. The scale sets rent reviews at 50% of the fee chargeable under lettings. For a three-year tenancy at RM5,000 a month, the lettings maximum is 1.25 months, or RM6,250, so a rent review on the same terms costs at most RM3,125.
What should the appointment letter say?
Put the agreed fee in writing as a percentage or a fixed sum, within the scale. List any extras you accept, such as advertising. Name the registered firm and its registration number, and the negotiator handling your property. Keep a signed copy before any viewing or listing goes live.
- Fee: the percentage or amount, and when it becomes payable.
- Extras: which costs you have agreed to, with a limit if you want one.
- The firm: its name and registration number, checked on the LPPEH register.
- The negotiator: name and REN number, checked against the tag.
Can an agent charge extra for advertising?
Yes, but only with your prior agreement. The scale lets agents claim media advertising, signboards, brochures and other promotional material, plus printing, plans and document copies. Travel can be claimed only where the property is more than 40 km from the agent's office.
Ask for these costs in writing before the listing goes live. If the appointment letter is silent on extras, ask whether the fee is all-in.
How do I know my agent is allowed to charge these fees?
Check before you sign. Scan the QR code on the negotiator's REN tag, search the firm on the LPPEH (BOVAEP) website and confirm its status is Active, or find a registered estate agent (E) in the PEPS Members' Directory. The scale of fees governs what registered estate agents may charge.
Someone acting as a negotiator without a REN tag is an illegal broker. If the deal goes wrong, there is no registered firm or professional body behind them for you to turn to.
Frequently asked questions
Is 3% the standard agent commission in Malaysia, and can an agent charge 6%?
3% is the legal maximum commission for the sale or purchase of land and buildings, so a 6% commission on a sale is above the scale. The actual fee is agreed with the firm, within that ceiling.
What is the minimum agent fee for a sale?
RM1,000 per property.
How much is the agent fee for a one-year rental?
At most 1.25 months' gross rent, and at least one month's rent.
Does the scale cover serviced apartments?
No. The lettings scale does not apply to serviced offices, serviced apartments or similar premises.
Related guides: how to check a REN number or REN tag and REA vs REN.
Before you sign an appointment, write the agreed percentage and any extras into it, and check the firm on the LPPEH register. If you are thinking of working on the other side of the table, the route starts with the 2-day PEPS NCC. Contact the PEPS Secretariat at Plaza Damas, Sri Hartamas, for the next dates.
Source: Board of Valuers, Appraisers, Estate Agents and Property Managers, Scale of Fees, Seventh Schedule (Rule 48), Part C: Estate Agency.