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By Jason Lim, REN 84424 · IQI Realty · Checked on 13 November 2026
This guide is for buyers, sellers, landlords and tenants in Johor Bahru, local or from abroad, who find two agents in one deal. The short answer: co-broking (the Board calls it co-agency) is when the agent holding the owner’s appointment shares the deal with a second registered firm that brings the buyer or tenant. The owner still pays one fee, which the two firms split, 50/50 unless they agree otherwise in writing. Both agents are paid from the owner’s side, so a buyer who wants someone acting only for them must appoint and pay that agent separately.
Quick answer
- What it is: two registered estate agency firms cooperating on one sale or letting. The listing firm holds the owner’s appointment; the co-agent introduces the buyer or tenant.
- One fee: the owner pays the fee agreed in the appointment, within the Board’s ceiling of 3% of the price for sales (minimum RM1,000) or 1.25 months’ rent for lettings of up to three years.
- The split: 50/50 between the two firms unless they agree a different split in writing before work starts (LPPEH co-agency standard).
- No double charging: an agent must not charge more than one party in the same transaction (Rule 89, 1986 Rules).
- Who represents whom: both firms are paid under the owner’s appointment. The buyer is not their client unless the buyer signs their own appointment and pays for it.
- Check both agents: each must be on the LPPEH register. Someone unregistered cannot lawfully take a share or recover a fee.
What co-broking means
In Malaysia, estate agency is regulated by the Board of Valuers, Appraisers, Estate Agents and Property Managers (LPPEH, also called BOVAEP) under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242). The Board’s standards describe co-agency as the listing firm agreeing with another firm that has a prospective buyer or tenant to share the deal and the fee on pre-agreed terms.
| Term | Who it is | What they do in a co-broke |
|---|---|---|
| Listing agent (listing firm) | The registered firm holding the owner’s written appointment to sell or let | Sets the asking terms with the owner, controls the listing, receives the fee and pays the co-agent’s share |
| Co-agent (co-broke agent) | A second registered firm with a buyer or tenant | Introduces and accompanies the buyer or tenant, passes offers through the listing firm |
| The owner (seller or landlord) | The client of the listing firm | Pays one fee, as stated in the appointment |
Co-broking is common in Johor Bahru: owners list with one firm while buyers, including Singapore commuters, already work with another.
How a co-broke deal works, step by step
- The owner appoints a firm. The appointment letter states the fee, whether it is exclusive and how long it lasts. See exclusive vs open listings.
- The firms agree terms in writing. The draft standard says co-agency terms are agreed in writing before any work starts, and the listing firm discloses the property details, the fee and how the owner pays.
- The co-agent registers the buyer. If the listing firm had already shown the home to that buyer, or to their spouse, employee or nominee, the co-agent loses its share unless it disclosed the buyer’s identity first.
- Viewings and offers go through the listing firm. Without the listing firm’s agreement, the co-agent does not contact the owner directly, advertise the unit or put up a signboard.
- Earnest deposit and SPA. The buyer pays against a receipt into the listing firm’s client account or to a lawyer as stakeholder; lawyers then handle the sale and purchase agreement. See my SPA guide.
- Fee and split. When the fee falls due, the owner pays the listing firm, which pays the co-agent’s agreed share promptly.
Who pays, and how the fee is shared
The Board’s scale (Seventh Schedule, Rule 48, of the 1986 Rules) caps fees at 3% of the price for sales of land and buildings, minimum RM1,000, and 1.25 months’ gross rent for tenancies of up to three years. The appointment can set a lower fee. The fee does not rise because a second firm is involved.
| Deal | Who usually pays the fee | How a co-broke changes it |
|---|---|---|
| Subsale (resale) home | The seller, under the listing appointment | The seller still pays one fee; the two firms share it |
| Rental | The landlord, under the letting appointment | The landlord still pays one fee; the two firms share it |
| New launch from a developer | The developer, under its own marketing arrangement with agencies | The buyer pays no agency fee; any sharing is between the developer and the agencies |
| Buyer appoints their own agent to find a home | The buyer, under the buyer’s appointment | That firm acts for the buyer and must not also charge the seller in the same deal |
A worked example
An owner sells a Mount Austin terrace for RM700,000 and agreed a fee of 2% in the appointment. The fee is RM14,000. If the listing firm is registered for service tax, 8% is added (the rate since 1 March 2024), making RM15,120 in total. Under a 50/50 co-agency, each firm’s share of the RM14,000 fee is RM7,000. The buyer pays nothing to either firm. My illustration.
If the buyer pulls out after paying an earnest deposit and the owner keeps it, the draft standard says the forfeited amount is shared 50:50 between the owner and the agents, with the agents’ half split between the two firms. My property agent fees guide covers the full scale.
Who represents whom
In a typical subsale co-broke, both firms work under the seller’s appointment and are paid from the seller’s fee. The co-agent may spend much time with you, but the arrangement is not a buyer’s agency contract.
- The listing firm works for the owner.
- The co-agent introduces you and is paid from the owner’s fee. The Board’s standards require negotiators not to mislead any party they do not represent, and to give honest information, including how long a deal is likely to take.
- No agent may charge both sides. Rule 89(2) of the 1986 Rules says an agent must not charge, or attempt to charge, fees on more than one party in one transaction.
- If you want your own agent, appoint one in writing. A buyer can sign an appointment for a firm to find a property, and pay that firm. Ask it to confirm in writing that it will not also take a fee from the seller.
- Your lawyer is your adviser on the contract. Neither agent gives legal advice. In a sale, each side normally has its own lawyer.
Two agents involved in your JB deal?
Tell me the property and who you are dealing with. I’ll explain who holds the appointment, who pays the fee and what to ask before you pay any deposit.
WhatsApp JasonThe rules in brief
| Rule | Source | What it means for you |
|---|---|---|
| Only registered estate agents may carry on estate agency; negotiators assist them | Act 242, section 22C | Both agents in a co-broke must belong to registered firms |
| Unauthorised persons cannot recover a fee in court | Act 242, section 30(3) | A friend or unregistered “broker” has no lawful claim to a share |
| A registrant who lets an unauthorised person carry on the business can be disciplined | Act 242, section 24(1)(h) | Firms should not pass deals or fees to unregistered people |
| Maximum fees: 3% for sales (minimum RM1,000), 1.25 months’ rent for lettings up to three years | Seventh Schedule, Rule 48 | Co-broking does not raise the ceiling |
| No charging more than one party in one transaction | Rule 89(2), 1986 Rules | The buyer should not be asked for a fee in a seller-paid co-broke |
| Co-agency terms in writing; 50/50 split by default; offers through the listing firm | LPPEH draft MEAS, Standard 7 | Ask the firms to confirm the arrangement if anything is unclear |
Acting as an estate agent without registration is an offence under section 30 of Act 242, with a fine of up to RM300,000, up to three years’ jail or both (Bernama, September 2020). You can check any negotiator, agent or firm on the Board’s register; see my guide to checking a REN or estate agent.
Co-broking with agents from Singapore or abroad
Many JB buyers first hear of a property from an agent abroad. Estate agency practice in Malaysia needs Malaysian registration under Act 242, so a deal on a Johor property should run through a registered Malaysian firm. Singapore’s Council for Estate Agencies has said it has no jurisdiction over foreign developers, and that buyers of overseas property should do their own checks (CEA, March 2017).
- Ask the overseas agent which Malaysian firm holds the listing or will handle the deal, and check that firm on the LPPEH register.
- Agree in writing who you pay, if anyone. Your purchase money goes to your lawyer’s client account or, for a new launch, the developer’s Housing Development Account, never to an agent.
- Foreign buyers can generally buy most Johor homes only from RM1 million, and state consent applies (New Straits Times, April 2026). See my Johor minimum price guide and buying without flying in.
For MM2H applicants, I coordinate with a MOTAC-licensed MM2H agent and handle the property side; approval is decided by the authorities.
Questions sellers and landlords should ask
- Will you co-broke my listing with other firms, and on what split?
- Does the fee in my appointment stay the same if another firm brings the buyer? (It should: one fee.)
- Will other firms advertise my unit? I want one consistent asking price.
- Who holds the earnest deposit, and in which account?
Questions buyers and tenants should ask
- Which firm holds the owner’s appointment, and which firm do you work for?
- Am I being asked to pay any fee? If so, for what, and under which signed appointment?
- Can I see the owner’s proof of ownership or a title search before I pay a booking fee? See my land title search guide.
- Where does my earnest deposit go, and who issues the receipt?
Red flags in a co-broke
- A request for a “co-broke fee”, “processing fee” or “commission” from the buyer or tenant when the owner is already paying.
- Payment to a personal account, or a new account sent by message at payment time.
- An intermediary with no REN, PEA or REA number who wants a share of the fee.
- Pressure to pay before a viewing, a title check or a written offer. My property scams guide covers the common patterns.
A split dispute between two firms is theirs to settle; the owner still owes one fee. For other problems, write to the firm’s principal, then the Board; for a contract dispute, see a lawyer.
Where to buy if this matters to you
- Mount Austin: an active resale and rental market for condos and terraces.
- JB Sentral and Bukit Chagar: high-rises near the CIQ and the RTS Link station.
- Iskandar Puteri: newer townships near the Second Link.
- Tebrau, Setia Indah and Molek: established landed neighbourhoods.
- New launches in JB: where the developer, not the buyer, pays the agencies.
Compare them on my JB property map.
More Johor living guides: Property agent fees · Exclusive vs open listings · Checking a REN or agent · Selling without an agent
Frequently asked questions
What is co-broking in Malaysian property?
Co-broking, or co-agency, is when the registered firm holding the owner’s appointment shares a sale or letting with a second registered firm that brings the buyer or tenant. The owner pays one fee and the two firms split it.
How is the agent fee split in a co-broke?
50/50 between the two firms unless they agree a different split in writing before work starts, under the Board’s co-agency standard. The split is between firms, not individual negotiators.
Does the buyer pay the agent in a co-broke deal?
Usually not. In a typical subsale or rental co-broke the seller or landlord pays one fee, which the firms share. A buyer pays only if they signed their own appointment with an agent, and an agent must not charge more than one party in a transaction.
Who does the co-broke agent represent?
Both firms are normally paid under the owner’s appointment, so the co-agent is not the buyer’s agent in a contractual sense. The co-agent must still be honest with the buyer. A buyer who wants their own agent can appoint and pay one in writing.
Can an unregistered person share the agent fee?
No. Under Act 242 only registered estate agents may carry on estate agency, unauthorised persons cannot recover a fee in court, and a registrant who lets an unauthorised person carry on the business can be disciplined.
Can a Singapore agent sell a Johor property?
Estate agency in Malaysia needs registration under Act 242, so a Johor deal should run through a registered Malaysian firm. Ask which Malaysian firm handles the deal and check it on the LPPEH register.
Buying or selling in JB with more than one agent?
Tell me the property, your role (buyer, seller, landlord or tenant) and who else is involved. I’ll explain how the appointment and fee would work, who pays whom and what to put in writing, whether I am the listing agent, the co-agent or neither. You can also book an appointment, or a Zoom consultation if you are abroad.
Sources: Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242), text as at 1 August 2018, sections 22C, 23, 24 and 30; Valuers, Appraisers and Estate Agents Rules 1986, Rule 48 (Seventh Schedule) and Rule 89; LPPEH, Exposure Draft on Malaysian Estate Agency Practice (MEAS), Standards 2 and 7 (co-agency), 2012; LPPEH, circulars and publications index (Malaysian Estate Agency Standards, 2014), checked November 2026; LPPEH, scale of fees, Seventh Schedule (Rule 48), estate agency and lettings, checked November 2026; LPPEH, functions of the Board, checked November 2026; New Straits Times, “SST 2 pct hike: here’s what you need to know”, 29 February 2024; Bernama, on illegal property brokers and Act 242 penalties, 22 September 2020; Council for Estate Agencies (Singapore), consumer article on buying property abroad, 11 March 2017; New Straits Times, “Foreigners hit Johor property resale wall”, 20 April 2026
Jason Lim, REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6. General information checked on 13 November 2026, not legal advice. This guide does not refer to any particular agent or firm. Your signed appointment decides who pays; check every agent on the LPPEH register and confirm payment details with your lawyer before you pay.