Legal Fees for Property Transactions
In Malaysia, the current remuneration of a solicitor in respect of non-contentious business is governed by the Solicitors’ Remuneration Order 2005 which came into operation on 1st January 2006. For purposes of this article, non-contentious business relates to the following:-
- sales, purchases or other forms of conveyances for completing any transaction involving immovable properties;
- tenancies or leases, agreements for tenancies or leases and agreements reserving rents;
- charges or mortgages, agreements for charges or mortgages, agreements for financing under the Islamic banking business as defined under the Islamic Banking Act 1983, debentures by way of a fixed or floating charge and other instruments executed by way of security;
- discharges of charges or deeds of reassignment pertaining to charged or assigned properties;
- preparation, filing or witnessing of miscellaneous documents; and
- other non-contentious work for which there are no provisions made to regulate the remuneration of a solicitor by means of a scale or fixed fee.
The remuneration specified in the Schedules to the Order does not include any of the following:-
- fees payable on the registration of documents requiring registration;
- stamp duties or fees;
- counsel’s fees, auctioneer’s or valuer’s fees;
- travelling or accommodation expenses;
- fees paid on searches;
- costs of extracts from any register or records;
- other disbursements reasonably and properly paid and incurred (except normal copying and stationary);
- cost of any extra work;
- fees relating to any business of a contentious nature;
- fees relating to any proceedings in court; and
- miscellaneous expenses not exceeding RM50.00.
According to the Order, there shall be no discount on fees specified in the Order. Prior to this Order, there has been many instances of lawyers openly giving out discount on fees related to non-contentious business, some of which are heard to be giving up to 50% in discount. As such, the Bar Council has placed certain mechanisms to monitor these unlawful acts and are keeping tabs on errant law firms. Lawyers found to have given out discounts for non-contentious business as defined under the Order may be subject to disciplinary proceedings. And rightly so!
Over the next couple of articles, I will share with you the various scale fees stipulated under the Schedules to the Order. This will give you a better picture of how legal fees are calculated for non-contentious business as prescribed under the Order.
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Very helpful information!!
wahh.. free legal advise available here. must bookmark this page lah.
ParisB : More to come
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a good infomation that all property buyers should know. thanks to the poster.
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My uncle bought a condo and he wish to know how much is the cost
to include two more names in the title and the procedures.
Thank you.