What is the standard fee charge (min & max) for property listed for RM145,000?

Hello Ada

Normally the maximum agent commission is 2%

Thanks for your prompt reply. I hope you or anyone here have time to answer to my problem.

Here is my situation...
In Nov 2008, my agent found a buyer and the buyer has only RM500 as booking and downpayment to buy my apartment. I agreed to that and that RM500 was given to our common lawyer (S&P) - lawyer is also the agent's friend. And the agent agreed that his commission can be paid when the sale is final, ie the lawyer will deduct from the final payment.

While I was back in KL Sept-Dec 2009, I spoke with the agent, requesting for a discount and he refused. He insisted our agreed fee was 2.76(?), which I have totally forgotten. So I asked him for a copy of the contract, he said NO contract signed. His reason being... it was a last minute deal, I was about to leave overseas, and I left, therefore nothing signed.

Then he rang me to tell me that my lawyer informed him that I am going to pay him from my personal cheque, and he went hostile. He even said he will lodge a police report because he believed that I will leave KL and will not honor my payment!

All I asked was a fair market rate commission and a copy of the contract. Fyi, transaction time from signing S&P, ie Nov 2008 till today Jan 2010 is till pending final release from Buyer's bank.

Please tell me what to do.

By law,agents commisions is count like that : RM500k above is 2%,and RM500k below is 2.75%

How about the agent cannot produce the "signed" contract?

the latest rate is 3%, depends on how vendor (owner) negotiate with the agent.

if vendor never signed with the agent, then it's messy..... agents might as well as say goodbye to the commission.

Dear Ada,

Have to say that there are many things wrong with the situation you are describing, and you need to own up to your responsibility as well if you wish to arrive at a fair and productive solution:

1- Agent fees were until very recently 2.75 % for properties below RM 500,000 and 2% for above RM 500,000 of the sale value (still though adjustable Based on negotiation), plus 5% of the commission amount as GST. So if you made a sale in November 2008 that is the applicable rate, and since you did not negotiate a rate, then it is correctly quoted that you need to pay around 2.75 plus 5% GST of the commission, which comes to 2.76325%, or 2.76% as he informed you.

2- Agents and Sellers many times don't make a contract and sell a property Based on ad-hoc verbal agreement, HOWEVER since a sale and purchase is made through the agent, THAT becomes a valid document proving the real estate agency brokered it and therefore becomes written confirmation of their commission. Since there is no other contract or agreement the standard commission will indeed apply.

So as far as the matter of a discount, the answer is there is no compulsion for the agent to give it. I should add as well that it is generally unacceptable practice to ask for the discount after the service was delivered.

However, this situation is strange: To have an offer made in November 2008 and not finalized in December 2009 is WAY beyond invalid, and the cause of the delay should immediately have their earnest downpayment forfeited. That should have been 3%, not a mere RM 500. The agent does not earn any of their commission until that amount at least is deposited with the lawyer. If the deal is broken or invalidated at that time then the agent earns only half the commission according to convention.

I believe standard residential agreements are on a 90 days basis from S&P plus 30 additional days on interest, after which the failing party loses the deposit amount and needs to pay an additional one to move forward. Banks are responsible for finalizing the documents quickly and the lawyers are responsible for following up, both are legally liable for this delay.

I suggest to forget about cutting the commission of the agent and focus on pushing your lawyer to send a final warning letter demanding the immediate finalization from the bank, and to take necessary actions as well to collect the contractual penalties.

Mr. Helmy,

Thanks for the information.

Today, the Agent asked if he can pass me a blank contract thru my cousin in KL. I am like.. WHAT??

As this is a family's property, I need to account for all fees incurred. He should be able to draw up a contract or a letter from his company. Am I correct?

Ho doesn't really have to. A blank contract is a way of showing you the standard fees and that is sufficient. Like I explained what he is asking for is standard commission and since you didn't make alternate arrangements, his name and his company papers filed with the lawyer doing the transaction is proof enough of his brokerage and therefore their commission.

You may though of course ask for a receipt.

i have question,lets say the property sells at 128k..then agent commission is 2.75?not 2%?and what if i got another agent come to me says that he got a buyer willing to buy more than >128k,,he mark up the price till >140k,and share the commission 50% with me..is that possible?and how is it possible for me to do that?..should i deal with the owner?pls help.tq

What you are doing is totally unethical and despicable. You have engaged the services of a RE Agent, and he finds a buyer for your property. In the absence of a written contract, the transaction thru the solicitor is binding, and they (the agents) are entitled to their commission + GST of 2.76% of the transacted sum, which is legal and binding.

After getting buyer, only then you ask for "discount". Now you say another agent has got a buyer at a higher price (RM140k??).

Frankly, as an agent, I will take you to court and win. Your costs will be heavier, as you will also bear other ancillary costs deemed fit.

YOU WOULDN'T LIKE THAT TO HAPPEN, WOULD YOU?

I kind of agree with Shandlin.

Agents in Asia get a really raw deal. Buyers and sellers often user their services and then don't pay the agents. I can see why the agent went hostile because they are concerned that they worked on 20 properties with so many potential buyers, and the one buyer that does decide to buy the property doesn't look like they're going to pay!

I think you should pay the full agents commission. That is only fair.

Please note that there are 2 bodies representing registered estate agents in Malaysia. Please visit their websites at www.lppeh.gov.my (body regulating estate agents) and www.miea.com.my (association for registered estate agents)
You are at liberty to write to them and clarify on all matters. The Real Estate Agents are well regulated in Malaysia as compared to many countries within ASEAN and the world at large. Pose your problems to them.

I believe the official answer can be obtained from the relevant authority mentioned in this forum.

In the case of Ada T, I don't understand why no immediate action was undertaken upon expiry of the time frame on final payment of the Sale. The time frame for full payment is all stated in the S&P Agreement.

Even one is illiterate it is not logical to have a property transaction spanning from 2008 to 2010 unless the property is under construction or late delivery by developer. When you don't feel right during this time, immediately you have to ask people who are in the know.

If you don't take the initiative then, now you still have to face the problem - in fact, it may get messy with time.

And I must say, your agent should give you all the advice - fair advice - you need then; at the point when the time lapsed.

I believe now you have to do the footwork & initiative. If you can afford it, get a lawyer who is specialised in property transactions, to handle your case & give the best advice to you. Otherwise, check it out with the relevant authority mentioned in this forum.

I believe we should not point finger to any party unless & until we know the actual situation at hand.

Roger Hor

Ada T. I agreed to Roger & Helmy that your case is pending way too long & messy. Pls get advise from the relevant authority and forget about the commission part. Owners should pay for the services done. And it's never fair to negotiated after ones job is done. I hope you understand, for a negotiator to close a deal is never easy. It takes time, effort & money in order to market the property for you.

Take for a simple example, do you ever ask for discount after you consume your food??

Hi,

Just a simple question. Is there any commission charges on buyer side?

Thanks! Blur Queen

Nichole

There usually aren't any estate agency commission on the buyer's side.

Usually there arent unless the buyer is desperate for property and for those who doesnt want hassle sourcing around
for property. Or also for some owners who are stingy on agent's commission.