Commission should be agreed before work starts
Property agent commission in Malaysia should never be a vague afterthought. Buyers, sellers, landlords and tenants should understand who is appointing the agent, what work is covered, when payment becomes due, and whether the amount follows the applicable fee framework.
Start with the official fee reference
For regulated fee context, refer to the official LPPEH fee page. Use it as a reference point, then ask the appointed agency to explain the actual fee, service scope and payment trigger in writing.
Sale vs rental fee discussions
Sale and rental transactions feel similar because both involve viewings and negotiation, but the fee conversation can differ depending on who appointed the agent and what service is being performed.
For sale transactions, clarify whether the fee is tied to completion, signing or another agreed milestone.
For rentals, clarify whether the landlord, tenant or appointing party is responsible for any fee.
Ask whether advertising, viewing coordination, negotiation and documentation support are included.
Keep appointment terms, invoices and payment instructions consistent with the agency details.
Questions to ask before agreeing to commission
Who is the appointing party?
What exact service is covered by the fee?
When does the fee become payable?
Is there tax, reimbursement or disbursement on top?
What happens if the transaction is cancelled, rejected by bank, or delayed?
If you are unsure whether the person handling the transaction is properly registered, check the REN number before hiring an agent.
How to avoid fee disputes
Put the fee basis in writing before serious work begins. Make sure the invoice comes from the proper agency, the bank account matches the instruction, and all parties understand whether payment is due on signing, completion or another milestone. Avoid vague wording such as “settle later”.
Transparency checklist
A transparent agent fee conversation should include the agency name, registration details, exact fee basis, service scope, tax or disbursement treatment if any, refund conditions, payment destination and timeline.
FAQ
Who should pay the agent commission?
It depends on who appointed the agent and what is agreed in writing. Clarify this before viewings or negotiations become serious.
Can I ask for the fee basis?
Yes. A professional agent should be able to explain the fee basis and direct you to official references where relevant.
Should commission be discussed before viewing?
If you are appointing the agent or may be expected to pay any fee, discuss it early. Waiting until the offer stage can create avoidable disputes.