Standard 7 2018

MALAYSIAN ESTATE AGENCY STANDARDS

Go here to read the differences from Standard 7 MEAS 2014.

STANDARD 7

CO-AGENCY PRACTICE

7.1.0 INTRODUCTION

7.1.1 Co-agency is co-operative agreement between a Listing Agency Firm (and Listing-Agent) a Co-Agency Firm (or Co-Agent) who which introduces a prospective purchaser/tenant party in the sale/rental or leasing of a property.

7.1.2 The terms and conditions of the working relationship between both parties are specified clearly. Similarly the fees chargeable by each party are also pre-agreed upon.

7.2.0 STATEMENTS OF STANDARD

7.2.1 Both the co-operating firms have to agree in writing on the terms of the co-agency arrangement before the commencement of any work.

7.2.2 All co-ageny agreements shall have an expiry date decided by the Listing Agent. The co-agency agreement will terminate at the expiry of the co-agency period or on the expiry of the listing or on mutual agreement between the co-operating firms.

7.2.3 The co-agency firm is not permitted to solicit for the same agency appointment that is the subject of the co-agency agreement during the period of the co-agency arrangement.

7.2.4 After the expiry of a co-agency agreement the co-agent shall be at liberty to accept the listing directly from the vendor/landlord or approach the vendor/landlord without having to inform or share his fees with the listing agent.

7.2.5 4 In a co-agency arrangement, the earnest deposit paid by the purchaser prospective party may be collected by either the Listing Agent or the Co-Agent. However, only the party authorized by the Client to be the rightful appointed Stakeholder shall HOLD the Earnest Deposit; unless otherwise agreed in writing by the Client. The rights of the Listing Agent shall be respected. to the co-operating agent may be held by either the listing agent or the co-operating agent.

7.2.6 5 The standard fee sharing between the listing firm and the co-agency firm shall be in the ratio of 50:50 percent unless otherwise agreed between both the co-operating agencies firms.

7.2.7 6 Where there is a Any variation from the 50;50 standard fee sharing aggregate then that variation should be agreed upon in writing shall be agreed upon in writing between the Listing Agent and the Co-Agent. Similarly, where a transaction is aborted, a 50:50 percent (%) split of the abortive fee or forfeited amount applies i.e 50% to the vendor/landlord Client, 25% to the Listing Agent and 25% to the Co-operating Agent.

7.2.8 7 All co-agency agreement can be initiated by either party and shall be signed by the respective firms.

7.2.9 8 All details pertaining to the property, the Earnest Deposit, the fees, inclusive of when the Listing Agent gets paid, and the mode of payment by the Client shall be disclosed by the Listing Agent to the Co-Agencyt firm upon entering into a co-agency arrangement.

7.3.0 EXPLANATION TO THE STANDARDS

7.3.1 The listing firm shall:-

  • 7.3.1.1 ensure that any viewings, correspondences or dealing with the property has to be through the listing firm;
  • 7.3.1.2 ensure that the co-agency firm is paid the agreed fees promptly when due;
  • 7.3.1.3 not contact the prospective purchaser/tenant co-agent’s prospects without the co-agent’s consent and knowledge;
  • 7.3.1.4 keep the co-agency firm informed of the progress of the negotiation/transaction; and
  • 7.3.1.5 endeavour to take all necessary steps to collect outstanding fees as soon as possible.

7.3.2 The co-agency firm shall:-

  • 7.3.2.1 ensure that any viewings, correspondences or dealings on the property shall go through the listing agent;
  • 7.3.2.2 keep that listing firm informed on the progress of the transaction;
  • 7.3.2.3 not advertise or promote the property under the co-agency agreement unless otherwise agreed upon by the listing firm;
  • 7.3.2.4 not contact the vendor/landlord directly whilst the co-agency arrangement is still in force;
  • 7.3.2.5 not put up its own signboard on the property which is under the co-agency agreement unless otherwise agreed upon by the listing firm; and
  • 7.3.2.6 if the listing firm has already shown the property to the spouse, employee, proxy, nominee or any representative of the prospective buyer/tenant, procured by the co-agency firm Co-Agent, then the Co-Agent the co-agency firm shall not be entitled to the agreed fee, unless the identity or name of the spouse, employee, proxy, nominee or any representative of the prospect has been disclosed to the listing firm in the first instance.

7.3.3 For the purpose of the treatment of the earnest deposit under clause 7.2.5 4 the following shall apply:-

  • 7.3.3.1 the earnest deposit shall be transmitted, or remitted, to the vendor Listing Agent’s Client or to the Client’s authorized Stakeholder, and/or with the authorization of the Client shall be treated as part of the professional fee payable to the estate Listing Agent upon the successful conclusion of the co-agency transaction; the fee of which shall then be shared with the Co-Agent in the amounts, and manner, as stated in 7.2.5 or in 7.2.6.
  • 7.3.3.2 the letter of offer shall clearly identify the agent who shall hold the earnest deposit ie. either the listing agent or the co-operating agent.

Ref:

Verbatim from Standard 7, MEAS 2018.