Stop Losing Your Commission: How to Prevent Clients from Cutting You Out
In Malaysia’s competitive property market, commission avoidance is a silent leak draining your income. Here’s how to seal it—and ensure you get paid for every deal you close.
You know the story. You’ve spent weeks, maybe months, on a client. You’ve driven countless miles, shown dozens of properties, and negotiated the best terms. Finally, you have a perfect match.
Then, silence. Calls go unanswered. Messages are left on "read." Weeks later, you find out the deal closed—without you.
Your client and the other party dealt directly. Your hard-earned commission vanished.
If this sounds familiar, you’ve been a victim of commission avoidance. It’s a costly nightmare in Malaysia's fast-moving, relationship-driven market.
What Exactly Is Commission Avoidance?
Commission avoidance happens when a client uses your services, time, and expertise to find a property or counterparty, then deliberately cuts you out to deal directly and avoid paying your fee.
A Typical Scenario
- The Introduction: You show a rental property, coordinate with the landlord, and even help negotiate the rate.
- The Connection: The tenant and landlord exchange contacts during the viewing.
- The Disappearance: The tenant ghosts you and contacts the landlord directly.
- The Result: They sign the tenancy agreement privately. You lose your commission.
The client gets a “discount,” the landlord saves on fees, and you’re left with nothing but wasted time and effort.
Why Does This Happen in Malaysia?
The motive is simple: to save money. Clients often see your commission as an avoidable cost, not a fair payment for professional service.
Common reasons include:
- Perception of Low Value: “You just opened the door—why should I pay one month’s rent?”
- Weak Legal Recourse: Malaysia lacks a strong statutory framework to easily enforce agent commissions in these situations.
- Informal Arrangements: Many agents rely on verbal agreements instead of signed contracts.
When deals are based on goodwill alone, trust can disappear overnight.
How to Protect Your Business and Your Commission
You can’t control a client’s ethics, but you can structure your business to make cutting you out difficult, risky, or pointless.
Here are four proven strategies:
1. The Proactive Defense: Exclusive Agency Agreements
Before investing significant time, get a written commitment.
- For Sellers/Landlords: Use an Exclusive Listing Agreement. This legally binds the owner to pay your commission if the property is sold or rented during the mandate—even if they find the tenant themselves. It removes their incentive to bypass you.
- For Buyers/Tenants: Use a Buyer/Tenant Agency Agreement. It formalizes your relationship, states your commission, and ensures you’re recognized as the appointed agent.
Pro Tip: Present these agreements confidently. Clients respect professionals who protect their business.
2. The Paper Trail: Property Viewing Confirmation Forms
Before every viewing, have the client sign a Property Viewing Confirmation Form.
This simple document is powerful evidence. It should include:
- Client’s full details
- Specific property viewed
- Date and time
- A clause acknowledging you as the introducing agent and entitling you to the agreed commission for any deal within a set period (e.g., 6–12 months)
This form alone may not stop bad actors, but it gives you a solid legal foundation for a claim.
3. The Value-Add: Be Indispensable
People rarely cut out someone they truly value.
Don’t be a key-holder—be a consultant.
- Provide market analyses and pricing insights.
- Explain complex paperwork and legal requirements.
- Highlight risks in private deals (e.g., unverified owners, tenancy disputes).
- Offer post-deal support like handovers or loan guidance.
Build genuine relationships. It’s harder to betray someone who made your journey easier.
4. The Professional System: Use a CRM with an Audit Trail
Modernize your operations with a platform like ListingMine’s Private CRM.
Log every client interaction, inquiry, and viewing to create an undeniable digital paper trail. This strengthens your position in disputes and makes your business more credible to serious clients.
CRM-based records are timestamped, traceable, and professional—no more scrambling through WhatsApp screenshots.
Legal Insight: “Quantum Meruit” — Get Paid for Work Done
Even without a formal agreement, you may have legal standing. Under the principle of quantum meruit, you can claim reasonable payment for services rendered if your work directly led to a successful transaction.
This falls under breach of contract or unjust enrichment, but it requires solid evidence—another reason documentation is non-negotiable.
When in doubt, consult a lawyer familiar with real estate disputes.
What to Do If It Happens to You
- Gather Evidence: Collect all messages, emails, signed viewing forms, and CRM records.
- Send a Formal Letter: Notify both parties of your involvement. Outline the services you provided and state your commission claim.
- Seek Legal Advice: For larger sums, consult a property lawyer. A formal demand letter often prompts a settlement before court is necessary.
Most clients back down once they see you’re organized and assertive.
Final Takeaway: Don’t Be a Volunteer
Your time, effort, and expertise have value. Commission avoidance isn’t clever—it’s unethical.
Stop working on handshakes and “trust.” Protect your income with agreements, audit trails, and professionalism.
By formalizing your process, you stop being an easy target and start building a business that’s respected, protected, and paid fairly.
Protect every deal with a system that remembers you. Use ListingMine’s Private CRM to record, prove, and secure your commission—automatically.
Stop losing deals you’ve already won. Structure your business to ensure you get paid for your work.
