Subject: Request for the Ministry of Finance (MOF) to Review and Enhance Regulations Governing the Real Estate Agency Industry

We respectfully request the Ministry of Finance (MOF) and the relevant regulatory board to review and strengthen the existing laws, regulations, and policies governing the real estate agency industry in Malaysia.

Our proposals are as follows:

1. Mandatory Use of REN Codes

* Require all real estate transactions handled by Real Estate Negotiators (RENs) to be conducted under valid and registered REN codes to enhance accountability, transparency, and consumer protection. This measure would also help eradicate illegal brokers and reduce industry malpractices.

2.Owner Direct Transactions

* Where property owners choose to deal directly with tenants or buyers without engaging a licensed real estate agency, require the owner to obtain an annual transaction code or permit from the regulatory body to ensure compliance, proper record-keeping, and transaction transparency.

3. Developer Compliance

Require property developers holding an Advertising Permit and Developer’s Licence (APDL) to either obtain an annual regulatory code or appoint a licensed Real Estate Agent (REA) to oversee and manage all sales and marketing activities, ensuring compliance with industry regulations and professional standards.

4.Review of Professional Fees

 In light of inflation and the increasing costs of advertising, technology, and business operations, review the current professional fee structure. Consider revising the minimum sales commission rate to between 2% and 3%, and the rental commission rate to 1.5 months’ rental, to better reflect current market conditions and support the sustainability of professional real estate services.

5. Public Awareness and Enforcement

If any of the above proposals are approved, request the MOF and the regulatory board to issue clear public guidelines, notices, and educational materials to ensure industry participants and consumers are properly informed and able to comply with the updated requirements.

6. Review of Property Marketing Platforms

All property sale and rental marketing platforms operating in Malaysia should be reviewed and regulated in accordance with the requirements of the relevant regulatory authority.

Property advertisements published on platforms such as  Facebook Marketplace⁠,  iProperty Malaysia⁠,  PropertyGuru Malaysia⁠,  Mudah.my⁠ and other similar platforms should be required to clearly display the registered negotiator’s REN Code where applicable.

In addition, the relevant authorities should monitor and review advertising fees and pricing structures imposed by these platforms to ensure fair, reasonable, and transparent charges, and to prevent excessive price increases that may adversely affect industry practitioners 

7)We also request the Ministry of Finance (MOF) to engage with the Bar Council to review the current practice relating to legal documentation and stamping procedures. All legal documentation and stamping matters should be handled directly through licensed law firms, with no involvement of unauthorized third parties, in order to enhance accountability, consumer protection, and professional

We believe these measures will improve professionalism, transparency, regulatory compliance, consumer protection, and the long-term sustainability of Malaysia’s real estate agency industry.

Support the petition. Support industry reform.

Real estate practitioners have no fixed salary, no EPF, and no guaranteed income. No deals mean no income. Yet licensed REAs and RENs continue to comply with regulations and professional standards.

We urge all registered REAs and RENs to sign this petition and call on the MOF to strengthen the law, improve industry protection, and ensure fair treatment for legitimate practitioners.