11 Things Home Buyers Should Watch Out for When Dealing with Property Agents

Most property agents in Malaysia do their job properly, but a few habits should make any home buyer stop and check before paying money or signing anything. The main red flags are an agent who will not show proof of registration, works under someone else's registration, asks for commission above the permitted scale or from both sides, discourages you from getting legal advice, pushes you towards a particular lawyer, gives legal advice themselves, or asks you to pay into a personal bank account. This guide explains 11 warning signs and what to do about each one.

A house is usually the largest purchase you will make. A careless step at the booking stage can add cost, delay the deal or put your deposit at risk, so it pays to know what to watch for.

1. The agent will not show proof of registration

Estate agents and their negotiators in Malaysia are regulated by the Board of Valuers, Appraisers, Estate Agents and Property Managers (Lembaga Penilai, Pentaksir, Ejen Harta Tanah dan Pengurus Harta, or LPPEH). A negotiator working under a registered agency carries a REN (Real Estate Negotiator) tag with a registration number.

If the person dealing with you will not show their REN tag, treat it as a red flag. A business card or name card is not proof of registration. You can check a name or registration number using the Board's official online search before you pay anything.

2. The registration belongs to someone else

Be wary of an agent who appears to be working under another person's registration, for example a tag or number that does not match their name, or an agency letterhead they are not attached to. An unregistered person using someone else's registration gives you little protection if something goes wrong.

3. The commission is above the permitted scale

Estate agents' fees are governed by a scale set under the Board's rules. For the sale of a property, the maximum commission under that scale is 3% of the price. If an agent asks for more than this, or adds unexplained "service charges" on top, ask for the basis in writing before agreeing to anything.

4. The agent discourages you from seeing a lawyer first

A common warning sign is an agent who says the terms are "standard" and there is no need to have a lawyer look at them. The terms of a booking form or agreement should not be decided by the agent alone. Before you sign a booking form that commits you to a deposit, or any agreement, a property lawyer should explain what you are agreeing to. See our guide on what a conveyancing lawyer does, the fees and how to appoint one.

5. The agent promises too much

Promises like "the loan will definitely be approved", "the transfer will be done in a few weeks" or "there are no other costs" are designed to get you to sign quickly. Loan approval depends on the bank, transfer times depend on the land office and any consent needed, and there are always legal fees, stamp duty and disbursements. If a promise matters to you, it should be written into the agreement, not just said.

6. The agent avoids or delays a title search

Before you pay a meaningful deposit, you should know who the registered owner is and whether the title has a charge (bank loan), caveat or restriction in interest. An agent who delays or discourages an official land search, or refuses to share the title details with your lawyer, is a clear warning sign. Read more on land titles and strata titles.

7. The agent insists you use "their" lawyer

An agent may recommend lawyers they know, and that is not wrong in itself. The warning sign is pressure: being told you must use a particular lawyer, or that the deal will fall through if you do not. The lawyer acting for you should be someone you choose and can deal with directly, without the agent as a go-between. Remember that your lawyer's duty is owed to you, not to the agent.

8. The agent gives you legal advice

Agents often explain the process, and general information is useful. But an agent who tells you how a legal issue will turn out, for example whether a restriction in interest is "no problem", or what happens to your deposit if the loan is rejected, is going beyond their role. Lawyers are responsible for the legal advice they give and are required to carry professional indemnity insurance. An agent's reassurance does not give you the same protection. If the loan is a concern, see what happens to the deal and deposit if your loan is rejected after signing the SPA.

9. The agent wants commission from both buyer and seller

An agent is normally appointed and paid by one party, usually the seller. If an agent who is acting for the seller also asks you, the buyer, to pay commission, ask who they are acting for and ask to see the written appointment. Collecting commission from both sides without clear, written disclosure is a red flag, because an agent cannot fully protect the interests of both parties at once.

10. The agent asks you to pay into a personal account

Booking fees, deposits and commission should never be paid into an agent's personal bank account. If money must be paid at the booking stage, it should go to the agency's account, with an official receipt, or better still to the lawyer acting in the transaction as stakeholder. Money paid into a personal account is much harder to trace or recover if the deal fails.

11. The booking form is not on the agency's official letterhead

The booking form or offer letter should be on the registered agency's official letterhead and show the agency's details. A form with no letterhead, or one issued in an individual's name only, should be checked carefully before you sign or pay. If you are using LPPSA (public-sector housing financing), note that LPPSA has not accepted an offer to purchase or sale proforma in place of the agreement since 5 February 2024, so do not rely on a booking form alone for your financing application.

What to do if you see these red flags

• Pause before paying anything further.

• Ask for the agent's REN tag and the agency's details, and check them.

• Get all promises, fees and conditions in writing.

• Pay only to the agency's official account or to the lawyer as stakeholder, and keep every receipt.

• Speak to a lawyer you have chosen before signing the booking form or the SPA.

How ASCOLAW can help

ASCOLAW (Messrs Akmal Saufi & Co) acts for buyers in subsale and developer purchases. Before you commit, we can check the title, review the booking form or offer, explain the terms and costs, and hold the deposit as stakeholder so your money is protected while the deal proceeds. We deal with you directly, and we will explain the estimated legal fees under the Solicitors' Remuneration Order 2023 before any work starts.

Fill in the ASCOLAW enquiry form below with a short description of the property and where you are in the process, and our team will get back to you on the next steps.

Frequently asked questions

How do I check if a property agent is registered in Malaysia?

Ask to see the negotiator's REN tag and the agency's details, then check the name or registration number using the official online search of the Board of Valuers, Appraisers, Estate Agents and Property Managers (LPPEH). A business card alone is not proof of registration.

What is the maximum commission a property agent can charge?

For the sale of a property, the maximum commission under the Board's scale of fees is 3% of the price. Ask for any fee, and who is paying it, to be set out in writing.

Should I pay the booking deposit to the agent?

If a booking deposit is required, pay it to the agency's official account with an official receipt, or to the lawyer handling the transaction as stakeholder. Never pay into an agent's personal account.

Can the agent choose my lawyer?

An agent can recommend a lawyer, but the choice is yours. Your lawyer acts for you, and you should be able to deal with them directly without the agent in between.

Do I need a lawyer if I am buying through an agent?

An agent helps find the property and negotiate the price, but does not replace a lawyer. A lawyer checks the title, prepares or reviews the SPA, protects your deposit, handles the loan documents and registers the transfer.

This article is general information only and is not legal advice. The rules on lawyers' fees described here apply in Peninsular Malaysia; Sabah and Sarawak have their own land laws and fee rules. Every transaction is different, so please get advice from a licensed lawyer before acting.

Related guides

• Buying Property In Malaysia

• What Is Conveyancing in Malaysia? Meaning, Process & Who Handles It

• Legal Fees for Buying and Selling a House in Malaysia (2026 Guide)

• Loan Rejected After Signing the SPA: What Happens to the Deal & Deposit

• Find a property lawyer by area