Estate Agent Agreement (Malaysia)
ESTATE AGENT AGREEMENT
ESTATE AGENT AGREEMENT
Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242)
This Estate Agent Agreement is made on [Agreement Date].
Parties
BETWEEN
[Owner Name] (NRIC/SSM: [Owner I C]), of [Owner Address], contact number [Owner Phone] ("the Owner");
AND
[Agency Name] (BOVAEA Licence No.: [Agency B O V A E A No]), of [Agency Address], represented by [Ren Name] (REN Tag No.: [Ren Number]) ("the Agent").
Property and Listing Details
Property: [Property Address]
Title Reference: [Title Reference]
Transaction Type: [Transaction Type]
Listing Price / Asking Rent: [Listing Price]
Type of Appointment: [Appointment Type]
Appointment and Listing Period
1. APPOINTMENT
The Owner hereby appoints the Agent on a [Appointment Type] basis to market, negotiate, and facilitate the [Transaction Type] of the Property at the listing price of [Listing Price] (or such other price as the Owner may agree in writing), commencing on [Listing Start Date] for a period of [Listing Duration] ("the Listing Period").
2. EXCLUSIVE AGENCY (if applicable)
If this agreement is an Exclusive Agency, the Owner agrees not to appoint any other estate agent to market the Property and not to sell or let the Property privately during the Listing Period without the Agent's involvement. Commission shall be payable to the Agent if the Property is sold or let during the Listing Period, whether through the Agent's introduction or otherwise.
Agent's Obligations
3. AGENT'S OBLIGATIONS
The Agent shall: (a) market the Property professionally through appropriate channels including online property portals, signboards, and viewings; (b) conduct viewings with prospective purchasers or tenants at times agreed with the Owner; (c) present all written offers to the Owner promptly and without alteration; (d) act at all times in the Owner's best interests and maintain the confidentiality of the Owner's minimum acceptable price and motivation to sell or let; (e) comply with BOVAEA's Code of Ethics and Professional Conduct; (f) disclose to the Owner immediately if the Agent has any conflict of interest; and (g) not accept any commission from the purchaser or tenant in respect of the same transaction without the Owner's prior written consent.
Commission
4. COMMISSION
(a) If the Agent introduces a purchaser or tenant who completes the purchase or letting of the Property during the Listing Period, the [Commission Payer] shall pay the Agent a commission of [Commission Rate], calculated on the actual transacted price or rental.
(b) Commission is payable upon execution of the Sale and Purchase Agreement (for sales) or the Tenancy Agreement (for lettings).
(c) All commission is subject to Service Tax at the prevailing rate under the Service Tax Act 2018 (Act 807), currently 8%.
(d) The commission prescribed above is consistent with the BOVAEA Scale of Fees under the Valuers, Appraisers and Estate Agents (Scale of Fees) Rules 2018.
Keys and Access
5. KEYS AND ACCESS
The Owner shall provide the Agent with a set of keys or access instructions to the Property for the purpose of conducting viewings. The Agent shall maintain a log of all viewings and shall return all keys promptly upon expiry or earlier termination of this Agreement.
Expiry and Renewal
6. EXPIRY OF LISTING PERIOD
If the Property is not sold or let by the end of the Listing Period, this Agreement shall expire without further obligation on either party, unless renewed in writing by both parties. The Owner remains free to appoint any agent (or no agent) after expiry.
Execution
IN WITNESS WHEREOF the parties have signed this Agreement on [Agreement Date].
Signed by the Owner:
_____________________________
[Owner Name]
NRIC/SSM: [Owner I C]
Date: [Agreement Date]
Signed for and on behalf of the Agent:
[Agency Name] (BOVAEA Licence: [Agency B O V A E A No])
_____________________________
[Ren Name] (REN: [Ren Number])
Date: [Agreement Date]
Property Owner
________________
Signature
Estate Agent / REN
________________
Signature
What Is a Estate Agent Agreement (Malaysia)?
An Estate Agent Agreement in Malaysia records the particulars needed to administer and distribute a deceased person's estate.
Estate agent commissions in Malaysia are regulated by BOVAEA's Scale of Fees under the Valuers, Appraisers and Estate Agents (Scale of Fees) Rules 2018. For property sales, the standard commission is 3% of the transacted price for residential properties and 2% for commercial properties (subject to a minimum commission). For property rentals, the standard commission is one month's rent per year of tenancy term (for rentals up to 3 years). These are maximum rates — actual commission may be lower by negotiation.
The Estate Agent Agreement may be exclusive or non-exclusive. An Exclusive Agency Agreement grants the appointed agent the sole right to market and sell the property during the listing period — the vendor may not appoint other agents and may not sell the property privately without paying the agent's commission. A Non-Exclusive or Open Agency allows the vendor to appoint multiple agents simultaneously.
Until the formal SPA is executed, the estate agent acts as an intermediary — facilitating negotiations and presenting offers. The agent must comply with BOVAEA's Code of Ethics and Professional Conduct, including the obligation to disclose any conflict of interest, the prohibition on accepting dual commissions (from both vendor and purchaser) without disclosure, and the requirement to account for all monies received on behalf of clients.
The legal framework governing the Estate Agent Agreement (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Estate Agent Agreement (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The National Land Code 1965 (Act 56) sets the foundational requirements.
When Do You Need a Estate Agent Agreement (Malaysia)?
An Estate Agent Agreement is required in Malaysia whenever a property owner formally appoints a real estate agent to market their property for sale or rental.
An Estate Agent Agreement is required when a property owner wishes to sell their residential property (terraced house, semi-detached house, condominium, or apartment) through a BOVAEA-registered real estate agency. The agreement documents the listing price, commission rate, listing period, and the agent's obligations to the vendor.
An Estate Agent Agreement is needed when a commercial property owner appoints an agent to find a buyer or tenant for a shop lot, office suite, or industrial unit. Commercial property transactions often involve higher-value commissions and the agent's obligations to market the property effectively.
An Estate Agent Agreement is required when a developer wishes to appoint a third-party real estate agency to market and sell new property units alongside the developer's own in-house sales team. Such agency agreements must comply with the developer's housing developer licence under the HDA 1966 and the appointment must be consistent with the developer's project marketing plan.
An Estate Agent Agreement is needed when a landlord wishes to appoint an agent to find a suitable tenant for a residential or commercial property, including conducting viewings, screening tenants, and preparing or recommending a tenancy agreement.
An Estate Agent Agreement is required when a financial institution (bank) disposes of repossessed property and appoints a licensed estate agent to market the property for sale — either by private treaty or public tender — following a court-ordered auction or deed-in-lieu process.
Parties in Malaysia should prepare a Estate Agent Agreement (Malaysia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Estate Agent Agreement (Malaysia)
A complete Malaysia Estate Agent Agreement must contain the following essential elements.
Parties: Full legal name, NRIC or SSM registration number of the property owner (principal) and the estate agency. The agency's BOVAEA licence number and the name and REN number of the assigned negotiator must be stated to confirm their registration under Act 242.
Property description: Full address, title reference, and description of the property being listed for sale or rental. The listing price (for sale) or asking rent (for rental) must be stated.
Type of appointment: Whether the agreement is an exclusive agency (sole right to sell during the listing period) or a non-exclusive/open agency. An exclusive agency agreement prevents the vendor from appointing other agents or selling privately without paying commission.
Listing period: The duration of the agent's appointment — typically 3 to 6 months for residential sales, with an option to renew. The agreement should state what happens if the property is not sold or let within the listing period.
Commission: The agreed commission rate (as a percentage of the transacted price for sales, or as a number of months' rent for rentals), the party responsible for paying the commission (vendor for sales, landlord for lettings), and the condition for commission entitlement — typically that the agent has introduced the purchaser or tenant and the transaction has been completed by execution of a SPA or tenancy agreement.
Agent's obligations: The specific marketing services the agent is engaged to provide — including property photography, online listing, conducting viewings, presenting and negotiating offers, and advising on market conditions. The agent's duty to act in the vendor's best interests and not to disclose confidential information about the vendor's minimum price or motivation to sell.
Key handover and access: The vendor's obligation to provide keys or access to the property for viewings, and the agent's obligation to account for all keys and access codes provided.
Additional compliance elements for a Estate Agent Agreement (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Estate Agent Agreement (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/real-estate/property/estate-agent-agreement-malaysia
"Estate Agent Agreement (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/real-estate/property/estate-agent-agreement-malaysia.
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author = {{Forms Legal}},
title = {Estate Agent Agreement (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/real-estate/property/estate-agent-agreement-malaysia}},
note = {Free legal document template. Based on National Land Code 1965 (Act 56)}
}
Frequently Asked Questions
The standard estate agent commission for property transactions in Malaysia is prescribed by BOVAEA's Scale of Fees under the Valuers, Appraisers and Estate Agents (Scale of Fees) Rules 2018. For property sales, the maximum commission is 3% of the transacted price for residential properties and 2% for commercial and industrial properties, subject to a minimum fee of RM 1,000 per transaction. For property rentals, the standard commission is one month's gross rent for each year of the tenancy term for tenancies up to 3 years — for example, a 2-year tenancy at RM 2,500/month would attract a commission of RM 5,000 (2 months' rent). The commission is typically borne by the vendor or landlord, not the purchaser or tenant — a practice different from many other countries. Dual commissions (charging both vendor and purchaser) are prohibited unless both parties are notified and consent in writing. All commissions in Malaysia are subject to the 8% Service Tax under the Service Tax Act 2018.
A REA (Registered Estate Agent) and a REN (Real Estate Negotiator) are both persons involved in property agency transactions in Malaysia, but they have different qualifications and regulatory status under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242). A REA is a fully qualified professional who has passed the BOVAEA estate agency examinations, completed a period of practical training, and been granted a full estate agent's licence by BOVAEA (identified by the 'E' prefix and licence number). A REA can operate their own licensed estate agency and carry on estate agency business independently. A REN is a person who acts as a negotiator or salesperson employed by a licensed estate agency (the REA's company). A REN must register with BOVAEA (obtaining an REN registration tag and number) before carrying on any estate agency work, but cannot operate independently — they must work under the supervision and licence of a registered estate agency. BOVAEA's public register lists all active REAs and RENs, and property owners can verify their status before engaging them.
An estate agent in Malaysia can act for both the vendor (seller) and the purchaser in the same property transaction — this is called dual agency — but only if both parties are fully informed of the dual representation and consent to it in writing. Under BOVAEA's Code of Ethics and Professional Conduct, a registered estate agent must disclose immediately to both parties when they represent both sides of a transaction and must obtain written consent from both parties before proceeding. The agent may not act in a manner that prejudices either party's interests. If the agent fails to disclose the dual agency and receives commission from both parties without consent, this is a breach of the Code of Ethics and may constitute an offence under Act 242. In practice, dual agency situations are common in Malaysia where a single agent introduces the buyer to the vendor's property — the prudent approach is to act only as the vendor's agent and require the purchaser to act independently or seek their own representation.
A Estate Agent Agreement (Malaysia) does not legally require a lawyer in Malaysia, and individuals and businesses may draft and execute the document independently. The National Land Code 1965 (Act 56) does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Malaysia lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Federal Court of Malaysia has jurisdiction over disputes arising from this type of document, and Companies Commission of Malaysia (SSM) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Estate Agent Agreement (Malaysia) does not legally require a lawyer in Malaysia, though legal advice is recommended. Under Malaysian law, the Contracts Act 1950 (Act 136) governs agreements. The Companies Commission of Malaysia (SSM) regulates corporate documents under the Companies Act 2016 (Act 777). The Employment Act 1955 and Industrial Court handle employment disputes. The Personal Data Protection Act 2010 (Act 709) imposes data protection obligations. Forms-legal.com provides this template as a starting point — always review with a qualified Malaysian lawyer for significant transactions. Under Malaysia law, National Land Code 1965 (Act 56), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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