Understanding your commission structure is key to planning your income in real estate. In Malaysia, commissions differ depending on whether you are selling secondary market properties (subsale) or developer projects (new launch), and how your agency splits the earnings with you.
Subsale vs new launch commission rates
For secondary market properties (subsale), the maximum commission allowed by law in Malaysia is 3% of the transaction price. Usually, it ranges between 2% to 3%, which is paid by the owner (seller).
For new launches (developer projects), the commission is paid by the developer, typically ranging from 0.8% to 1.5% or sometimes higher depending on the project. Because developers sell in volume and run promotional campaigns, closing new launches can yield very steady commissions.
Understanding the agency and agent split
Every commission earned goes to the agency first, as required by law. The agency then splits this amount with the agent. The split ratio depends on the agency and the agent's performance tier.
For example, standard splits start at 70/30 (where the agent keeps 70% and the agency takes 30%) and can go up to 80/20, 85/15, or even higher for top performers who hit their annual sales targets.
Payout timing and cash flow management
As a property agent, you must manage your cash flow because commissions are not paid instantly. For subsale deals, the payout happens after the buyer's loan is approved and the Sale and Purchase Agreement (SPA) is stamped.
For developer projects, payout depends on the developer's administrative speed and bank progressive releases, taking anywhere from 2 to 6 months. It is important to join a team with efficient submission systems to ensure faster processing.
Commission review checklist
- Do you know the exact commission rate for the project you are selling?
- What is the starting commission split ratio offered by your agency?
- How long does the developer typically take to pay out commission for new launches?
- Are there admin fees deducted from your commission splits?
FAQ
Who pays the property agent's commission?
In Malaysia, the seller pays the commission in subsale deals. For new launches, the property developer pays the commission. The buyer typically does not pay any fee to the agent.
Can I get 100% of the commission?
No. Under Malaysian law, all transactions must go through a licensed real estate agency, which will take a percentage split to cover administrative, legal, and operational support.
How do top agents earn higher commission splits?
Most agencies use a tiered commission structure. As your total sales volume increases, your split ratio automatically upgrades (e.g., from 70% up to 85% or 90% matching your sales tier).
Looking for a fair and high-paying commission structure?
Join Bricksmen to enjoy competitive commission splits, fast payouts, and transparent tracking for every deal you close.
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