Selling a House in Malaysia (2026): Key Fees and Costs Every Seller Should Know

Property Agent Fees and Commission Charges

• The guiding body, Board of Valuers, Appraisers, Estate Agents & Property Managers (BOVAEP), sets a maximum commission of 3 % of the final selling price for residential property transactions.
  
• Typical practice is around 2 to 3 %, though negotiation is possible, especially if the property is of higher value or the agent’s scope is limited.
  
• The agent may charge additional fees for marketing materials, transport or staging; these should be disclosed up-front.
  

• Ensure the agent is registered and licensed under the Estate Agents Act.
  
• Confirm the commission rate in writing and whether the commission is inclusive or exclusive of SST (Service Sales Tax); typically, SST at 6 % applies on top of the commission.
  
• Ask whether any minimum fee or fixed “marketing” expense applies in addition to commission.
  
• Clarify when the fee is due (e.g., on signing of SPA, on transfer, or when funds are received).

Valuation Costs When Selling a Property Without an Agent

• A certified appraiser will determine the market value of your property, providing a credible basis for pricing and helping to mitigate disputes.
  
• Assessment fees typically depend on the property’s value and the complexity of the appraisal (e.g., a strata unit versus a landed house).
  

• Use the valuation report to justify your asking price in your listings.
  
• Compare similar properties in your locale (recent sales) to determine whether the valuation is accurate.
  
• Factor in time and cost for marketing and viewings, as you will be handling these yourself.
  
• If you’re managing the sale yourself, ensure you understand the legal and procedural elements (such as SPA, transfers, etc.) to avoid incurring unexpected costs or delays.

Home Improvement, Repairs, and Cleaning Expenses

• Basic repairs: leaking faucets, cracked tiles, creaking doors, chipped countertops.
  
• Cosmetic refresh: fresh coat of paint, deep cleaning, decluttering, and removing personal items.
  
• Presentation & staging: consider professional cleaning or light staging to help buyers envision the space.
  
• Prioritise areas that prospective buyers will notice first (e.g., main living room, kitchen, master bedroom).
  

• Focus on visible impact rather than major renovations; small investments often yield good returns.
  
• Keep records and receipts for expenses: if improvements enhance the value and you later sell, some costs may be deductible when calculating taxable gains (see RPGT section).
  
• Avoid overspending: ensure that the cost of the improvement is proportionate to the property’s expected value and the local market norm.
  
• Timing matters: ensure repairs are completed promptly before viewings, but avoid undertaking work that is unlikely to influence buyer decisions.

Lawyer Fees for Selling a House in Malaysia

• These rates apply to non-contentious transactions (typical sales) and are the maximum scale; solicitors may not discount below the prescribed minimums.
  
• For properties governed under the Housing Development (Control & Licensing) Act 1966 (HDA) (i.e., new developer units), discounted rates apply (Table B of the SRO).
  
• In the case of selling a house, your solicitor will prepare the Sale & Purchase Agreement (if applicable), handle title transfer, liaise with the land office and coordinate with your buyer’s solicitor.
  
• Ask for an itemised quote that includes just the legal fees and separately the disbursements (search fees, registration fees, land office costs) so you know exactly what you’ll pay.
  
• A well-qualified solicitor can ensure all checks (outstanding loans, encumbrances, and correct title) are done, avoiding costly setbacks at the transfer stage.

Real Property Gains Tax (RPGT) in 2026: What Sellers Need to Know

A. RPGT Filing & Self-Assessment: Latest Rules Effective 2026

• From 2026, sellers (disposers) must compute their own chargeable gain, file the return and pay the tax within specified deadlines.
  
• The disposal date triggers the clock: usually the date of the written agreement or when transfer occurs.
  
• The seller must submit the RPGT return (via e-CKHT or MyTax) and pay the tax accordingly; failure may result in penalties (e.g., 10 % late payment surcharge).
  
• It is vital to keep full documentation: acquisition cost records, improvement receipts, legal/agent fees (for deduction), and sale/settlement paperwork.
  

B. Who Needs to Pay RPGT: Citizens, PRs, Foreigners and Companies

• Even if you are a Malaysian citizen, the holding period is critical: disposing before year 6 means a rate applies.
  
• If you are a foreigner, no matter how long you hold the property, you cannot reach 0 %; the minimum is 10 %.
  
• Companies may also be subject to CGT or RPGT depending on their structure (see LHDN guidance).
  

C. Calculating Chargeable Gains and Deductible Costs

• Legal fees in connection with acquisition or disposal.
  
• Agent’s commission (if payable by seller).
  
• Improvements (capital in nature, not routine maintenance).
  
• Stamp duty and registration fees paid on acquisition or disposal, where applicable.
  
• Documentation and transfer costs.
  

• Acquisition at RM400,000; sale at RM700,000.
  
• Allowable expenses: RM30,000 (legal + commission + improvements).
  
• Chargeable Gain = RM700,000 – (RM400,000 + RM30,000) = RM270,000.
  
• Exemption: greater of RM10,000 or 10% of RM270,000 = RM27,000.
  
• Net Gain = RM270,000 – RM27,000 = RM243,000.
  
• Holding period: 5th year → rate 15 %.
  
• RPGT Payable = RM243,000 × 15 % = RM36,450.
  Note: This is an illustrative example only.

Additional or Hidden Costs When Selling Property in Malaysia

• Outstanding loan redemption fees (if you still have a mortgage on the property).
  
• Bank penalties for early settlement or early termination of the loan.
  
• Updating or rectifying title issues, outstanding utility bills, or strata fees is often required before transfer.
  
• Costs for discharge of charge, land office registration fees, search fees, and stamp duty on transfer (some part may be borne by the seller if negotiated).
  
• Marketing costs if you decide to run your own advertising (professional photos, staging, online listings, video walkthroughs).
  
• Incentives you offer to the buyer (e.g., covering part of the legal fees or transfer duties to accelerate the sale).
  
• Holding costs if the property remains unsold for an extended period: property tax, utility bills, and maintenance.
  

Tips to Reduce Your Selling Expenses

• Negotiate the agent commission rate, if your property is attractive or you bring your own buyer, you may secure a slightly lower rate than the standard.
  
• Get at least two or three quotes from valuers and solicitors; competition may help reduce fees.
  
• Keep repair/improvement costs focused on high-impact, visible areas rather than full-scale renovation.
  
• Time your disposal to reduce RPGT: if you are a Malaysian citizen and approaching the six year holding mark, delaying may reduce tax from 15 % to 0 %.
  
• Document all allowable expenses carefully (keep receipts, invoices, digital files) so you can maximise your deduction when calculating RPGT.
  
• Consider offering to pay part of the buyer’s legal/transfer costs instead of increasing your asking price. This may make your property more appealing while controlling your own costs.
  
• Use online platforms and social media for marketing (DIY or low-cost) if you’re managing listing yourself; reduce print advertising.
  
• Where possible, negotiate with your solicitor for fixed fee packages for standard transactions rather than open-ended hourly fees.

Step-by-Step Overview of the Selling Process in Malaysia

1. Preparation and Valuation
   Begin by engaging a professional valuer (if you’re managing the sale yourself) or appointing a property agent. This stage may include paying for a valuation report and marketing materials.
   
2. Engaging a Property Agent (Optional)
   If you choose to work with an agent, you’ll sign a listing agreement that outlines the commission rate, scope of marketing, and duration of the listing.
   
3. Pre-Listing Repairs and Cleaning
   Address minor defects, repaint, and deep-clean the property to enhance its appeal. Costs here vary depending on the extent of improvement and whether staging services are used.
   
4. Listing and Viewings
   Advertise the property on reliable platforms and host viewings. You may incur additional costs for professional photography or online listing packages.
   
5. Securing a Buyer and Letter of Offer
   Once you’ve agreed on a sale price with a buyer, a Letter of Offer is signed. At this stage, the agent’s commission becomes payable as per the agreed terms.
   
6. Appointing a Lawyer or Solicitor
   Engage a solicitor to handle the Sale and Purchase Agreement (SPA) and conveyancing process. This includes preparing legal documents and ensuring compliance with land office requirements.
   
7. Preparing and Signing the SPA
   The SPA is drafted, reviewed, and signed by both parties. Your lawyer will coordinate with the buyer’s bank to confirm financing and manage the deposit transaction.
   
8. Redeeming Outstanding Loan or Charges
   If your property has an existing mortgage, your solicitor will arrange for loan redemption and discharge of the charge. Bank administrative fees may apply.
   
9. Title Transfer and Registration
   The solicitor facilitates the property title transfer at the Land Office, ensuring all registration and stamp duty fees are settled.
   
10. RPGT Filing and Payment
    If a profit is made from the sale, file and pay Real Property Gains Tax (RPGT) within the prescribed timeline under the self-assessment system.
    
11. Final Settlement and Handover
    After all documentation is completed, the buyer’s payment is released. Your solicitor handles disbursement, and you’ll receive the remaining balance after deductions.
    
12. Post-Sale Matters
    Cancel utility accounts, inform relevant authorities (such as Indah Water and TNB), and settle any outstanding service charges or taxes.