|
Who are real estate agents and how much should I pay for their service?
1. Land and Buildings - A maximum of 3% of the sale price of the
property
2. Chattels including Plant and Machinery - 10% of the proceeds
• The above scale applies to any sale or purchase by way of private
treaty, tender or any other mode of disposal or acquisition.
• For Sales and Marketing of projects by registered estate agents the
fees is to be agreed between the estate agent and the client.
• The above scale of fees shall not apply to the sale of foreign
properties in Malaysia or sales of Malaysian properties in foreign
countries.
How to be a Real Estate Agent in Malaysia?
The Real Estate Profession comes under the purview of the Ministry
Ministry of Finance and is regulated by The Board of Valuers, Appraisers
& Estate Agents, Malaysia and governed by the Valuers, Appraisers &
Estate Agents Act 1981, the Rules 1986 and The Standards.
To
be a real estate agent and get the real estate agent license in
Malaysia, you have to sit for a two-part (each part consists of 6
subjects) real estate examination offered by the Board of Valuers,
Appraisers and Estate Agents, serve a two-year apprenticeship with a
registered real estate agent and pass an oral examination (Test of
Professional Competence).
Who is
Negotiator?
A negotiator is a real estate salesperson employed by a real estate
agent. All negotiators are required to work on a full time basis with a
real estate firm.
How do
I know if a real estate agent is legal and recognized by the authority?
A registered real estate agency has a certificate of authority to
practice and has a registration number such as E(3)1116. You may verify
the registration at the website of the Board of Valuers, Appraisers and
Estate Agents Malaysia at www.lppeh.gov.my.
A
registered firm has a proper physical office with signage and land
telephone lines. The firm's name, registration number, land line phone
numbers are always displayed in all marketing materials. You are
strongly advised to check all these when dealing with anyone claiming to
be estate agent.
When is
the professional / agency fee due?
The professional / agency fee is due upon execution of the formal Sale and
Purchase Agreement or Tenancy Agreement, as the case may be. For
conditional agreements (such as upon obtaining state authority's
consent), the fee is due either upon execution of the said agreement, or
upon the last condition fulfilled, as agreed between the agent and the
client.
The earnest deposit paid by the buyer/tenant and held by the agent as
stakeholder may be used to fully or partially off-set the professional
fee due, with the consent of the client.
Do I have to pay the Service Tax of 6% on the professional fee?
Yes, any client who engages the services of a professional is required
to pay the Service Tax under the Service Tax Act 1975. From 1 January
2008, firms providing professional services are required to collect
service tax from clients, regardless of the 'threshold' of total income
of the firm. Service tax exemptions for firms below the 'threshold', as
allowed in the past, no longer applies.
Is the professional fee deductible from the Real Property Gain Tax (RPGT)?
Yes, estate agents' professional fee is deductible if your transaction
is subjected to RPGT. The fee is also deductible from the rental income
of your properties.
|
