Resources

Home Loan Eligibility Quick Check

A tool by Loan Street to assist you to quickly find out the loan amount that you can afford to borrow from banks in Malaysia based on simple financial profiling. CLICK LINK HERE

RPGT / CKHT Calculator

Use this complete RPGT calculator by Loan Street to see how much you’re about to be taxed for Real Property Gain Tax if you sell your property in Malaysia: CLICK LINK HERE

Home Loan & Stamp Duty Calculator

Visualize the monthly installment, legal fees and stamp duties for buying a house in Malaysia using this all-in-one home loan calculator by LoanStreet : CLICK LINK HERE

General FAQ

What is the difference between a Real Estate Negotiator (REN) and an Illegal Broker?

All Real Estate Negotiators in Malaysia are required to be certified by the Board of Valuers, Appraisals, Estate Agents and Property Managers (BOVAEP) before they are allowed to represent sellers, landlords, buyers & tenants in the sale and marketing of properties.

A REN Tag will be issued to a real estate negotiator (REN). It contains all the information including their name, photo, IC no, REN no, firm name, firm registration no, quick respond code (QR) and security features, This tag must be worn by the REN at all times during their conduct of business.

If a REN are unable to show their REN Tag when conducting a business, (viewing or inspection), then he is probably an illegal broker. He is not authorised and as such stop dealing with him. You can either conduct a search at www.lppeh.gov.my website under Negotiator Search. Alternatively, call BOVAEA during the office hours at 603-22876666. If the person is unable to prove himself as a certified REN, report him to the police immediately with full information. Any person who acts in contravention of section 22(c) commits an offence under Section 30(i) of the Act and is liable upon conviction to a fine not exceeding RM300,000 or imprisonment for a term not exceeding 3 years or both.

Why should I use a certified Real Estate Negotiator?

A certified real estate negotiator is more than just a “sales person” or “middle man”. They act on your behalf as your agent, providing you with advice and guidance and doing a job – helping you buy or sell a home. While it is true they get paid for what they do, so do other professions that provide advice, guidance, and have a service to sell –such as Certified Public Accountants and Lawyers.

The Internet has opened up a world of information that wasn’t previously available to home buyers and seller. The data on listings available for sale is almost current – but not quite. There are times when you need the most current information about what has sold or is for sale, and the best way to get that is with a REN.

However, the role of an agent has changed in the last couple of years. In the past, agents were the only way home buyers and sellers could access information. Now agents are evolving. Because today’s home buyers and sellers are so much better informed than in the past, expertise and ability are becoming more important.

The real estate agent is becoming more of a “guide” than a “salesperson” — your personal representative in buying or selling a property.

What is the tag worn by the real estate negotiator (REN)?

When you see a REN wearing a tag of identification, it is called a REN Tag. A REN Tag is an identification tag issued to a real estate negotiator (REN). It contains all the information including their name, photo, NRIC no, REN no, firm name, firm registration no, quick respond code (QR) and security features, This tag must be worn by the REN at all times during their conduct of business.

How to check or verify if the REN is a licensed?

  1. You can scan the Quick Respond (QR) code on the REN Tag using a smartphone. It contains all the negotiator information including their photograph.
  2. If you would like to perform a search on a specific REN / REA / PEA / Agency, you can click on this link: http://search.lppeh.gov.my/
  3. Alternatively, call BOVAEA during the office hours at 603-22876666.

What if the agent did not wear a tag?

Check if he has it with him. If he is unable to show the tag, then he might be an illegal broker. He is not authorised and as such stop dealing with him. Report him to the police immediately with full information.

What is the scale fees payable to agents? Different agents told me different rate.

All fees payable for services rendered, both for sale or letting are stipulated under the 7th Schedule of Valuers, Appraisers, Estate Agents & Property Managers Rules.

Under the 7th Schedule:

1. Sale or Purchase

  1. Land and Buildings (Maximum fee of 3%)
  2. Fees for other services such as joint venture, sale of company, property swaps, etc. (Maximum fee of 3%)
  3. Chattels including Plant and Machinery (10 % of the proceeds)

Minimum fee : As above, subject to a minimum fee shall be RM1,000 per property.

The above scale applies to any sale or purchase by way of private treaty, tender or any other mode of disposal or acquisition.

For Sale and Marketing of projects by registered estate agents, the fees are 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 sale of Malaysian properties in foreign countries.

2. Lettings

Duration of Tenancy Maximum (Fee equivalent too)
Up to 3 years 1.25 months gross rental
Exceeding 3 years up to 4 years 1.50 months gross rental
Exceeding 4 years up to 5 years 1.75 months gross rental
Exceeding 5 years 1.75 months gross rental
Exceeding 5 years
(without option for renewal)		 1.75 months gross rental
Exceeding 5 years
(with option for renewal)		 1.75 months gross rental plus 0.25 months rental for every additional year

 

Minimum fee : As above subject to a minimum fee of 1 month rental.

For tenancies less than one year, the fee may be calculated on a pro rata basis. The above scale shall not apply to serviced offices or apartments or any other premises of a similar nature.

3. Rent Reviews – 50 % of the fees chargeable under lettings

4. Additional Claims

In addition to the fees stated in items 1 to 3, claims may be made for:

  1. the cost of printing, plans, copies of documents, lithography, travelling (only where the distance between the estate agent’s office and the property is more than 40 km) and other expenses actually incurred;
  2. the cost of media advertisements, signboards, brochures and other promotional material.

Note : The above additional claims may not be incurred by the registered estate agent without the prior concurrence of the client.

For more information, kindly refer to http://lppeh.gov.my/WP2016/fees/

I saw my property being posted or nailed on tree trunks and poles?

These actions are normally done by the illegal brokers. REN are not allowed to put-up signboards on lamppost and tree trunks. If you see your property being advertised in such method, kindly contact the broker to remove the signboard immediately.

Who is paying the REN’s fees? Buyer or Owner?

Under the General Code of Conduct and Ethics for Registered Estate Agents, a registered estate agent shall not accept fees from more that one client in any one transaction. The person who engage the services of the estate agents will be the one paying for the professional fees.

When is an Estate Agent’s fee due?

In normal situation, the fees is due upon the signing of the sale & Purchase in case of a purchase and upon signing the tenancy agreement in a tenancy. However, there are special cases where the fees can be deferred to a later date. For information about this, kindly speak to our agents.

Documentations

What are the type of forms I need to sign with my appointed REN?

Listed are the basic forms that your REN might asked you to sign.

FOR SALE OF PROPERTY

  1. Authorization to Sell Form
    • There are 2 main type of this form. The Exclusive Authorization F0rm which allow ONLY the appointed person to sell the property. NO OTHER person can market it without prior agreement of the appointed person.
    • On the other hand, a General Authorization Form allows property owners to engage more than 1 REN to assist in marketing the property.
    • This form is to be sign between property owner(s) and REN/REA
  2. Agreement to Purchase Form
    • Also known as booking form, Offer Letter or Temporary Contract to Purchase.
    • Purchaser to sign the form upon confirmation of interest to purchase the property. Normally an earnest deposit is included upon signing of this form.
    • Vendor signing as acceptance of offer by purchaser.
    • This form will be served as a legally enforced documents until the sales and purchase agreement is signed.
    • This form is to be sign between vendor(s) and purchaser(s).

FOR RENTAL OF PROPERTY

  1. Authorization to Rent Form (For Rental of Property)
    • There are 2 main type of this form. The Exclusive Authorization F0rm which allow ONLY the appointed person to lease out the property. NO OTHER person can market it without prior agreement of the appointed person.
    • On the other hand, a General Authorization Form allows property owners to engage more than 1 REN to assist in marketing the property.
    • This form is to be sign between property owner(s) and REN/REA
  2. Agreement to Rent Form
    • Also known as booking form or Offer Letter to rent the said property.
    • Tenant to sign the form upon confirmation of interest to rent the property. A one month deposit is included upon signing of this form.
    • Vendor signing as acceptance of offer by tenant.
    • This form will be served as a legally enforced documents until the tenancy agreement is signed.
    • This form is to be sign between owner(s) and tenant(s)

Do I really need to sign the authorization form provided by the REN?

While there is no law to make it compulsory to sign the authorization to sell/rent form, we advised our clients to sign as you will know who you have given the rights to market your property. There are a lot of fake agents and brokers in the market whom might be using your property to scam others. With the signed authorization, you can protect yourself from the potential troubles. Besides, you will have a documented terms and conditions, fees payable to agency and other important information in the form. A little advise, make sure you read and understand the content before signing, especially to know the difference between an exclusive appointment and a general appointment.

What documents that I need to prepare if I want to sell my property?

  1. If it’s under individual or strata title, then a copy of the title is required
  2. If it’s under master title, then a copy of Sales & Purchase Agreement (SPA) is required
  3. Copy of latest Quit Rent receipt
  4. Copy of latest Assessment Fees receipt
  5. If the property is currently under loan from bank, then a copy of the latest bank statement on outstanding amount is required
  6. For apartment, condominium, or stratified properties, a copy of the latest management fees receipt is required.
  7. A copy of NRIC of owner(s)

As a purchaser, what documents do I need to prepare for bank loan application?

For Employee

  1. Photocopy of NRIC of applicant(s)
  2. Pay Slips (Fixed income: Latest 3 months) (Commission based: Latest 6 months)
  3. Bank statement (Latest 3-6 months)
  4. Latest EPF statement/ Pension letter
  5. Latest 2 year Form BE & EA/EC & Tax payment slip
  6. Savings/FD/ASB/investment (if any)
  7. Employment offer letter

For Self Employed

  1. Photocopy NRIC
  2. Trading licence
  3. Latest 2 years Borang B + tax payment slips
  4. Company current account statement (Latest 3-6 months)
  5. Personal savings account statement (Latest 3-6 months)
  6. Latest 2 years Audited financial statement (if any)

For Sdn. Bhd. Company

  1. Copy of NRIC of director(s)
  2. Latest 6 months business bank statement
  3. Form 24,49,9 and M&A – CTC
  4. Latest 2 years of audited account
  5. Latest 2 years of Income Tax with Tax Payment Receipt

Note:
Above mentioned documents are subject to change without prior notice from bank. Different bank might required additional documents.

Compare

Compare
You can only compare 4 properties, any new property added will replace the first one from the comparison.