Types of agency:
Exclusive Agency
This refers to the instruction from a principal to a single
estate agent to act on his behalf. The principal may make
introductions but will leave the dosing of the transaction to
the estate agent. The principal must pay the appointed
estate agent the agreed fee even if the estate agent was not
the effective cause of the transaction.
Sole Agency
Just as in exclusive agency a single estate agent is engaged
The principal may, however, wish to reserve the right to dose
deals himself and is not obligated to pay the agent his fee in
addition to making introductions or an arrangement may be made
for a discount in fees where the principal plays an active role.
Sole Joint Agency
This is a variation of the Sole Agency. The estate agent works
together with the principal as a team and the fee is divided on
a pre-agreed formula. The principal has the flexibility to
compensate additional estate agents and at the same time
maintain the advantage of having one estate agent in control.
Joint Agency
This is where more than one estate agent is appointed and
only the estate agent who doses the deals gets paid. The
number of agents appointed is limited and each is aware of
the appointment of the others.
Ad Hoc Basis or commonly referred to as “Open Listing”
In this case the principal can engage an unlimited number
of estate agents on an ad hoc basis and fees are paid only
on successful conclusion of the estate agency transaction.
Tuesday, June 9, 2009
ESTATE AGENCY FEES
ESTATE AGENCY FEES
1. Sale or Purchase
(1) Land and Buildings
(i) 2.75% on the first RM 500,000 (ii) 2 % on the residue over RM 500,000
(2) Chattels including Plant and Machinery - 10 % of the proceeds
Minimum fee : As above but may be subject to a maximum discount of 30% and the minimum fee shall be RM1,000 per case.
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.
1. Sale or Purchase
(1) Land and Buildings
(i) 2.75% on the first RM 500,000 (ii) 2 % on the residue over RM 500,000
(2) Chattels including Plant and Machinery - 10 % of the proceeds
Minimum fee : As above but may be subject to a maximum discount of 30% and the minimum fee shall be RM1,000 per case.
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.
Estate agents seeking action against illegal ones
Saturday, July 21, 2007
The Star Online
Sunday July 22, 2007
Estate agents seeking action against illegal ones
By ROYCE CHEAH
KUALA LUMPUR: The Malaysian Institute of Estate Agents (MIEA) is puzzled why no unlicensed real estate agent has been brought to court despite 20 police reports lodged so far.MIEA president K. Soma Sundram claimed that there were more than 10,000 unlicensed agents and they were hurting the industry image.
Soma Sundram said there were about 1,500 active legitimate estate agents at present and 10,000 genuine real estate negotiators in the country.“Unlicensed agents hurt the image and professionalism of the industry while posing a threat to the public because there will be no legal recourse if something goes wrong.”Soma Sundram told a press conference yesterday that unlike registered estate agents, unlicensed agents would not maintain clients' accounts or have professional indemnity.“They may charge a lower service fee, but they will sell a property for more than the price agreed to by the seller and pocket the difference.“Most of these agents are housewives.
Even expatriate housewives are getting into the business,” he claimed.Soma Sundram also alleged that retired or inactive registered estate agents were leasing out certificates to unlicensed agents.“This is so the illegal agents will appear to be operating legitimately. We will take action as we know who these people are.”MIEA has sent two letters to Prime Minister Datuk Seri Abdullah Ahmad Badawi detailing the problems of unlicensed agents and seeking the Government's help.On how the public could identify whether an estate agent was legitimate or not, Soma Sundram said there were a number of ways that include ensuring the agent has a physical office and advertisements carry office telephone numbers and the firm's “E-number” to show that the firm was registered with the Board of Valuers, Appraisers and Estate Agents.
Source : The Star Online
Posted by iProp Realty at 6:36 PM 0 comments
The Star Online
Sunday July 22, 2007
Estate agents seeking action against illegal ones
By ROYCE CHEAH
KUALA LUMPUR: The Malaysian Institute of Estate Agents (MIEA) is puzzled why no unlicensed real estate agent has been brought to court despite 20 police reports lodged so far.MIEA president K. Soma Sundram claimed that there were more than 10,000 unlicensed agents and they were hurting the industry image.
Soma Sundram said there were about 1,500 active legitimate estate agents at present and 10,000 genuine real estate negotiators in the country.“Unlicensed agents hurt the image and professionalism of the industry while posing a threat to the public because there will be no legal recourse if something goes wrong.”Soma Sundram told a press conference yesterday that unlike registered estate agents, unlicensed agents would not maintain clients' accounts or have professional indemnity.“They may charge a lower service fee, but they will sell a property for more than the price agreed to by the seller and pocket the difference.“Most of these agents are housewives.
Even expatriate housewives are getting into the business,” he claimed.Soma Sundram also alleged that retired or inactive registered estate agents were leasing out certificates to unlicensed agents.“This is so the illegal agents will appear to be operating legitimately. We will take action as we know who these people are.”MIEA has sent two letters to Prime Minister Datuk Seri Abdullah Ahmad Badawi detailing the problems of unlicensed agents and seeking the Government's help.On how the public could identify whether an estate agent was legitimate or not, Soma Sundram said there were a number of ways that include ensuring the agent has a physical office and advertisements carry office telephone numbers and the firm's “E-number” to show that the firm was registered with the Board of Valuers, Appraisers and Estate Agents.
Source : The Star Online
Posted by iProp Realty at 6:36 PM 0 comments
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