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An estate agency appointment is an agreement between the seller (hereinafter refers to the principal) and a registered estate agent that authorizes the registered estate agent to represent the principal in the process of selling property. There are five (5) types of agency appointments. The most common used is the Exclusive Agency with exclusive right to sell. The following five (5) types of agency appointments which are being allowed in accordance to Malaysian Estate Agency Standards:

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 closing 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 wish to reserve the right to close 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 closes the deal gets paid. The number of agents appointed is limited and each is aware of the appointment of the others.

Ad-Hoc / Open Listing : in this case, the principal can engage an unlimited number of estate agent on ad-hoc basis and fees are paid only on successful conclusion of the estate agency transaction.

Apart from the types of agency appointments as mentioned above, there are also co-agency or co-broke between estate agents. This will be happened where the appointed estate agent enlists the services of another estate agent or agents and share the agency fees accordingly. Bear in mind, an estate agency appointment is the first legal step in the process of buying and selling properties in Malaysia.

Estate Agency Appointments  

The Board of Valuers,

Appraisers and Estate

Agents Malaysia

 

Malaysian Institute of

Estate Agents

 

The Malaysian Bar