Hi I am interested with a subsale house and the house is advertised by a real estate agent. He requested for 1% agent fee.

May I know when should I pay the agent fee? Upon signing s&p or after key handover?

Appreciate your advice.

This post has been edited by windskill: May 27 2016, 04:32 PM

Upon both parties signed the S&P and collected the 10% downpayment.
Only seller need to pay the agent fee.

This post has been edited by jimmybcmy: May 27 2016, 04:36 PM

Okay thanks for the input. Erm I think different places have different practices....for my case agent collects 2% from seller and 1% from buyer.

If let's say anything happens and the deal doesn't go through after signing s&p, will the agent fee be refunded?

After the s&p signed, the deal doesn't go through, there will be no refund from agent. If the buyer cancel deal, the 10% down payment will be forfeited and seller can keep all the money. If the seller cancel the deal, he need to return all the down payment plus pay the penalties as stated in s&p to the buyer.

Please read the s&p carefully before signing.

Standard practise; REN engaged with seller. It was seller who need to pay REN the agent fee. Usually booking fee is 3% from purchase price. That 3% will be hold by REN. Upon signing S&P, you pay the remaining 7%. Seller will get the 7%, and REN will get the 3% as the commission. So, it is obvious agent fee is paid by seller.

Do buyer pay agent the 3% directly?
Any safer way to pay the 3% and 7%?
Heard cases agent runaway.
Can pay all during S&P ?

Standard is 3% payable to REN. So, for safety please ensure the REN is registered and valid. Can check the REN number with LPPEH. www.lppeh.gov.my

This 3% that consider as booking. So can't all be paid during S&P. But some seller has leniency in determine the booking.

Remaining 7%, safest way is via cheque and pay to your appointed lawyer. So after S&P done and signed only your lawyer will pass to seller lawyer. Let's the lawyer do the work.

*As for now, because of GST, the rate now is become 3.18 and 6.82 respectively.

Alright. Thanks.
Can recommend any good lawyer?
Can pm me. Thx

No problem. PMed you.