Property Agent Fee in Malaysia 2026: How Much Commission Is Normal?
Property Lab editorial teamPublished 11 min read
Key points
- In Malaysia, a registered estate agent may charge at most 3% of the price on a sale or purchase, with a minimum fee of RM1,000 per property, under the board's fee scale.
- For letting a home in Malaysia, the agent fee ceiling is 1.25 months' gross rent for tenancies of up to three years, rising to 1.75 months, with a one-month minimum.
- Since 1 March 2024, agent commission in Malaysia carries 8% service tax if the firm is registered, and only BOVAEP-registered agents and their RENs may charge a fee.
Contents
- Who is allowed to charge a property agent fee in Malaysia?
- How much commission can a property agent charge on a sale in Malaysia?
- What is the agent fee for renting out a property in Malaysia?
- Is service tax charged on property agent commission?
- Worked example: agent fees on a RM500,000 sale and a RM2,000 rental
- Who pays the agent fee, and when is it due?
- Exclusive or open listing: what should the appointment say?
- How do you check that a property agent is registered?
- Checklist before you sign with a property agent
- Frequently Asked Questions
- References
A property agent fee in Malaysia is capped by law: a registered estate agent may charge up to 3% of the price on a sale or purchase (minimum RM1,000), and up to 1.25 months' rent for letting a home on a tenancy of up to three years. Firms registered for service tax add 8% on top, and any rate below the ceiling is open to negotiation.
For a subsale, the maximum agent commission in Malaysia is 3% of the price, with a RM1,000 floor per property. For a rental of up to three years, it is 1.25 months' gross rent, with a one-month floor. Only a registered estate agent, or a REN working under one, may charge you a fee.
Key numbers (as at October 2026)
- Sale fee ceiling3%
- Minimum sale feeRM1,000
- Letting, up to 3 years1.25 months
- Minimum letting fee1 month
- Service tax8%
- Fee falls dueOn signing
Also called: agent commission, real estate agent fee, ejen harta tanah (estate agent), REN or Perunding Perejenan Harta Tanah (real estate negotiator), REA (registered estate agent), BOVAEP, LPPEH or LPEPH (the board), cukai perkhidmatan (service tax).
Who is allowed to charge a property agent fee in Malaysia?
In Malaysia, only a registered estate agent with an authority to practise may charge a fee for selling, buying or letting property for someone else, under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242).
The Act took that name on 2 January 2018 (it was the Valuers, Appraisers and Estate Agents Act 1981), law firms Rahmat Lim and Conventus Law report. Section 22C of Act 242 bars anyone else from working or advertising as an estate agent, and an unregistered person cannot sue in court for a commission.
- Negotiators (REN): the board says they assist an estate agency firm under its direction, cannot act independently and work for one agent at a time.
- Owners: section 22C(2) lets an owner sell, rent or lease his own property without an agent.
- Penalty: acting as an agent without registration is an offence under section 30, with a fine of up to RM300,000, up to three years' jail or both, as the New Straits Times (NST) reported in 2020.
How much commission can a property agent charge on a sale in Malaysia?
The maximum commission on a sale or purchase of land and buildings in Malaysia is 3% of the price, subject to a minimum of RM1,000 per property, under the Seventh Schedule of the estate agents rules.
This ceiling comes from the Valuers, Appraisers and Estate Agents (Amendment) Rules 2009, P.U.(A) 304, in force since 1 October 2009. The board's 2009 circular says the change removed the old discounts and let agents negotiate fees with clients, so 3% is a ceiling, not a fixed rate.
The board's published fee scale applies to sales by private treaty, tender or any other method. It does not cap fees for marketing a developer's project (agent and developer agree them) or for foreign properties sold in Malaysia. Agents may also claim advertising, signboard and some travel costs, but only with your prior agreement.
What is the agent fee for renting out a property in Malaysia?
For letting a property in Malaysia, the board's scale sets the agent fee by tenancy length, from 1.25 months' gross rent for a tenancy of up to three years, rising to 1.75 months or more for longer ones, with a minimum fee of one month's rent.
| Tenancy length | Maximum fee |
|---|---|
| Up to 3 years | 1.25 months' rent |
| Over 3, up to 4 years | 1.50 months' rent |
| Over 4, up to 5 years | 1.75 months' rent |
| Over 5 years, no renewal option | 1.75 months' rent |
| Over 5 years, with renewal option | 1.75 + 0.25 per extra year |
From the BOVAEP fee scale (Seventh Schedule, Part C). Minimum fee: one month's rent. Tenancies shorter than one year may be charged pro rata. A rent review is charged at half the letting fee. The scale does not apply to serviced offices, serviced apartments or similar premises.
One-, two- and three-year tenancies share the same ceiling. Some online guides claim rentals have no regulated cap, but the board's scale sets one. Our tenancy agreement and rental deposit guides cover the contract and the deposits.
Is service tax charged on property agent commission?
Yes: in Malaysia, a property agent's commission is a taxable service, and the service tax rate has been 8% since 1 March 2024.
The Customs brokerage guide (version 3, as at 29 December 2025) says registered estate agents have been taxable as professional services since 1 September 2018, and unregistered real estate brokers were added on 26 February 2024. A business registers, and then charges the tax, once its taxable services pass a threshold, which the guide puts at RM500,000 over 12 months. A small firm below it may bill no tax, so ask whether a quote includes tax.
Worked example: agent fees on a RM500,000 sale and a RM2,000 rental
On an illustrative RM500,000 subsale in Malaysia, a 3% commission is RM15,000, or RM16,200 with 8% service tax; at an agreed 2%, the bill falls to RM10,800 including tax.
| Sale at RM500,000 | Fee (RM) | 8% tax (RM) | Total (RM) |
|---|---|---|---|
| Ceiling, 3% | 15,000 | 1,200 | 16,200 |
| Agreed, 2% | 10,000 | 800 | 10,800 |
Illustrative only, our calculation from the board's scale and the Customs rate. Assumes the firm is registered for service tax and that no extra costs are claimed. On a RM30,000 sale, 3% would be RM900, so the RM1,000 minimum applies instead.
For a home let at RM2,000 a month, the most an agent can charge is RM2,500 for a one-, two- or three-year tenancy, or RM2,700 once 8% tax is added.
| Rent RM2,000/month | Ceiling | Max fee (RM) | With tax (RM) |
|---|---|---|---|
| 1-year tenancy | 1.25 months | 2,500 | 2,700 |
| 2-year tenancy | 1.25 months | 2,500 | 2,700 |
| 3-year tenancy | 1.25 months | 2,500 | 2,700 |
| 4-year tenancy | 1.50 months | 3,000 | 3,240 |
| 5-year tenancy | 1.75 months | 3,500 | 3,780 |
Illustrative only, our calculation. The floor for this rent is one month, RM2,000 (RM2,160 with tax). Stamp duty on the tenancy agreement is a separate cost.
LHDN treats agent fees as an incidental cost for Real Property Gains Tax, which lowers a seller's taxable gain; our RPGT and how to sell a house guides show the full sum.
Who pays the agent fee, and when is it due?
In Malaysia, who pays an agent depends on who appointed the agent and on the terms you sign, and the board's FAQ says the fee falls due when the sale and purchase agreement (SPA) is signed in a sale, or when the tenancy agreement is signed in a rental.
- Subsale: the seller pays and the buyer pays no commission in a standard subsale, says PropCashflow, a property research site.
- New launch: the developer pays the agent, the same site says.
- Rental: practice varies, and some agents ask both landlord and tenant; agree in writing who pays before viewings start.
Rule 90 of the 1986 rules bars an estate agent from accepting any commission from a third party on a client's behalf without the client's knowledge and written consent, the board reminded agents in March 2024 when it warned against referral fees from lawyers. Our buying costs guide lists what a buyer does pay.
Exclusive or open listing: what should the appointment say?
In Malaysia, an exclusive appointment gives one agency the sole right to sell or let your property for a set period, while without one several agents may market it, and either way the fee terms belong in writing before work starts.
PropCashflow says exclusive periods are typically three to six months and suggests asking for a lower rate in return. Put these points in the appointment letter: the rate or fixed fee, whether tax is extra, the exclusive period and how to end it, who pays, and which costs the agent may claim.
The 3% and 1.25-month figures are ceilings, not prices. A fee above the scale on a subsale or a long-term home rental is a warning sign, and so is anyone who cannot show a REN tag or a registered firm behind it.
How do you check that a property agent is registered?
You can check a property agent or negotiator in Malaysia on the BOVAEP website, and the board says the phone number in the agent's adverts must match the number in its system.
- Search: use the Search page on lpeph.gov.my (the board's site moved there from lppeh.gov.my).
- Numbers: an estate agent's registration number is an "E" followed by digits, and a negotiator carries a tag with a REN number, the 2018 NST column explains.
- 2026 tags: during a system migration, some agents and RENs can only show their 2025 authority or tag, the board said in February 2026; call 03-2288 8815/16/17 if in doubt.
The board's July 2024 public advisory warns that fake agents ask buyers and tenants to transfer earnest deposits or down payments, then disappear.
Checklist before you sign with a property agent
- Check the agent or REN on the board's website and match the phone number.
- Ask for the agency firm's name and registration number, not just a negotiator's mobile.
- Confirm the fee is within 3% for a sale, or the letting scale for a rental.
- Ask whether 8% service tax will be added.
- Get the rate, exclusivity period and payer in a written appointment.
- Keep the invoice for your RPGT records, and approve any advert costs in writing first.
- Pay deposits to a lawyer or the firm's account, never a personal one.
Frequently Asked Questions
What is the normal property agent commission in Malaysia?
The legal maximum on a subsale is 3% of the price, and the rate can be negotiated below that. PropCashflow puts typical sale commissions at 2% to 3%.
How much is the agent fee for a one-year tenancy?
No more than 1.25 months' gross rent, and at least one month's rent, under the board's scale. A shorter tenancy may be charged pro rata.
Is the 3% agent fee negotiable?
Yes. Since 2009 the scale sets a maximum rather than a fixed charge, so any lower rate or flat fee can be agreed in writing.
Does the buyer pay agent commission in Malaysia?
Not usually in a subsale, where the seller appointed the agent. The scale also covers purchases, so a buyer who hires his own agent pays that agent on the agreed terms.
Do I pay SST on the agent fee?
Usually yes, at 8%, if the agency is registered for service tax. Check the invoice for a registration number.
Can a REN collect the commission personally?
A negotiator works for one registered firm and cannot act on his own, so the fee should be billed by the agency firm.
Can I sell or rent out my property without an agent?
Yes. Act 242 lets owners deal with their own property, and you save the commission but handle marketing and viewings yourself.
References
- BOVAEP (LPEPH): Fees, Seventh Schedule (Rule 48), Part C Estate AgencyUsed for the 3% sale ceiling, RM1,000 minimum, letting scale by tenancy length, one-month minimum, pro rata, serviced apartment exclusion, rent reviews and additional claims.
- BOVAEP Circular 3/2009 with P.U.(A) 304, the Valuers, Appraisers and Estate Agents (Amendment) Rules 2009 (PDF, scanned)Used for the gazetted 3% maximum, RM1,000 minimum, project and foreign property exclusions, removal of discounts and the 1 October 2009 start date.
- BOVAEP: Circular 3/2009, Amendments of the Scale of Fees (30 September 2009)Used for the purpose of the 2009 change (flexibility to negotiate).
- BOVAEP (LPEPH): FAQUsed for when an estate agent's fee is due.
- BOVAEP (LPEPH): Role of registered valuers, appraisers, estate agents and property managersUsed for the role of estate agents and negotiators.
- BOVAEP: Public advisory, beware of fraudulent real estate agents and negotiators (17 July 2024, PDF)Used for checking agents on the website, matching phone numbers and deposit scams.
- BOVAEP: Notification 4/2024, prohibition against referral fees from solicitors (1 March 2024, PDF)Used for Rule 90 on commission from third parties.
- BOVAEP: Issuance of authority to practise and REN tags for 2026 (27 February 2026, PDF)Used for the 2025 tags still being shown and the board's phone numbers.
- Low & Partners: Act 242 text (older reprint)Used for sections 22C (restrictions, owners' exemption, no court claim for fees) and 30 (offences).
- Rahmat Lim & Partners: Scope of the Act expanded to regulate property managersUsed for the amendment coming into force on 2 January 2018.
- Conventus Law: Amendments to the Valuers, Appraisers and Estate Agents Act (January 2018)Used for the Act's new name.
- Royal Malaysian Customs Department: Panduan Perkhidmatan Pembrokeran, version 3 (to 29 December 2025, PDF, linked from mysst.customs.gov.my)Used for the 8% rate from 1 March 2024, registered estate agents taxable since 1 September 2018, real estate brokerage from 26 February 2024 and the RM500,000 threshold.
- Royal Malaysian Customs Department: Guide on Professional Services (21 September 2021, PDF)Used for registered estate agents' services being taxable and tax charged only by registered persons.
- LHDN (HASiL): Disposal Price and Acquisition PriceUsed for agent fees as incidental costs for RPGT.
- New Straits Times: Know your real estate practitioner (Christopher Chan, 5 April 2018)Used for "E" registration numbers and REN tags.
- New Straits Times: Tracking illegal real estate agents in Malaysia (March 2020)Used for the section 30 penalty after the amendments.
- PropCashflow: Property agent commission in Malaysia, how much and who paysUsed for who usually pays on subsales and new launches, typical sale rates and exclusive periods (practice, not law).
The Act 242 text on Low & Partners is an older reprint, so check lom.agc.gov.my for the current wording. Check the board's fee page and MySST for the latest scale and tax rate before you sign.
General information only, not legal, tax or financial advice. Speak to a lawyer or the board if a fee or an agent's status looks wrong.
Sources
- Fees, Seventh Schedule (Rule 48), Part C Estate Agency — Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP/LPEPH)
- Circular 3/2009 with P.U.(A) 304, Valuers, Appraisers and Estate Agents (Amendment) Rules 2009 — Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP/LPPEH)
- Panduan Perkhidmatan Pembrokeran (Versi 3, 29 Disember 2025) — Royal Malaysian Customs Department
- Public Advisory: Beware of Fraudulent Real Estate Agents and Negotiators — Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEP)
- Valuers, Appraisers and Estate Agents Act 1981 (Act 242), sections 22C and 30 — Low & Partners
General information only, not legal, tax or investment advice. Rules and rates change; check the official source linked below before you act.
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