Legal Fees for Property Transaction – Sales & Purchase

One of the most asked questions in a Sales & Purchase transaction involving immovable property is How much do I pay for legal fees? For a general outlook on what these legal fees cover, read my article on Legal Fees for Property Transaction and I would suggest that you start reading from there so that you can fully appreciate and understand the fee structure applicable. Today, I will share with you what you are expected to pay to your solicitors in legal fees for sales, purchases or other form of conveyances for completing any transaction involving immovable properties – be it a house, apartment, condominium, shophouse, commercial buildings, other types of buildings or land.

The remuneration of the solicitor is governed by the First Schedule to the Solicitors’ Remuneration Order 2005 (which only applies to transactions from the 1st January, 2006 onwards) and this remuneration applies whether the solicitor is acting for the vendor, purchaser, transferor or transferee.

 

Consideration or Adjudicated value Scale of Fees
For the first RM150,000 1.0% (subject to minimum fee of RM300)
For the next RM850,000 0.7%
For the next RM2,000,000 0.6%
For the next RM2,000,000 0.5%
For the next RM2,500,000 0.4%
Where the consideration or adjudicated value is in excess of RM7,500,000 Negotiable on the excess (but shall not exceed 0.4% of such excess

 

 

Notwithstanding the above rates, for transactions governed by the Housing Development (Control and Licensing) Act 1966 or any subsidiary legislation made under that Act (eg. where you buy a house from a developer rather than a sub-sale), the remuneration of the solicitor having the conduct of and completing the transaction shall be as follows:-

a) RM250, if the consideration is RM45,000 or below;

b) 75% of the applicable scale fee prescribed, if the consideration is in excess of RM45,000 but not more than RM100,000;

c) 70% of the applicable scale fee specified, if the consideration is in excess of RM100,000 but not more than RM500,000; or

d) 65% of the applicable scale fee specified, if the consideration is in excess of RM500,000.

There are other rules which are applicable for this transaction but it would be too tedious to name them all. One of the most important rule to remember is that a solicitor may only act for either the Vendor / Transferor or the Purchaser / Transferee and not both. There is no such thing as a solicitor acting for both as there will be conflict of interest in such a situation.

Do you think the fees are expensive? Compare it with the fees charged by a property agent which usually range between 1 to 3% of the value of the transaction. I don’t mean to be argumentative but the professional liability of a solicitor towards the client compared to a property agent is definitely higher in its risk factor and rightfully, the fees chargeable by a solicitor should be higher.

comments

98 Responses to “Legal Fees for Property Transaction – Sales & Purchase”

  1. Henri on October 5th, 2007

    Do you know what kills you? The additional non-standard fees like

    • Transportation (RM50-RM150) – It costs just RM6-RM12 for a courier service within Klang Valley, or RM2.50 for Poslaju

    • Photocopying (RM50) – I though it costs 4 sen per page. RM50 is enough for 1250 pages.

    • Printing (RM50-RM100) – how this is different from photocopying, I have no idea

    • Land/title search (RM100-RM200) – A runner charges just RM30-RM80 for a search, the rest of goes to the firm to pay for the 30 sen phone call to the runner

    Check your invoice for this tacked on items. The lawyers assume you don’t know better and just pay. All these are NEGOTIABLE. The lawyer already makes a fair income from the standard fees (that’s why they are *standard*).

  2. pablopabla on October 5th, 2007

    Henri : I don’t see how, if at all, paying RM500 (taking the maximum from your examples above) as disbursements could kill the client when the legal fees are proportionately higher. The way you put it is as if the disbursements are so high that the client suffers as a result. In any event, if you could say that other professionals like auditors, engineering consultants, architects, tax consultants, accountants etc. do not charge slightly higher for disbursements just like lawyers do, then I rest my case. By the way, land title search is as per what the land office charges. Not what the runner charges. Thanks for your comment anyway and I agree with your point that a client should always look into the bill (whether legal fees or disbursements) and make enquiries with the solicitor where he is unsure or dissatisfied.

  3. henri on October 5th, 2007

    Dude, when a discharge of charge costs just RM300 and just involves presentation of the documents, another RM500 (it is usually more) is a killer.

    But even going with your argument that if a S&P is RM15,000, another RM1000 is nothing, you forget: RM15,000 for an S&P is based on the market value of the property, not the actual work performed. This is not logical and we are being conned somewhat. If one were to say that the higher the value of the transaction, then slightly more diligence is required, then yes. But it is not proportional to such an increase! ie. the diligence required for a RM100,000 house is not all that much more than a RM1mil house, but the fees is so much more. For engineering consultants, architects et al, yes, the work for a RM1mil house is much more – it is a bigger house, a more complex house! The parity is not the same for conveyancing work and engineering work, you cannot compare the two! But lawyers are.

    2) The Bar Council set the standard charges because it is a fair value (although as explained above, it is actually not fair to clients). So why must lawyers tack on a transportation charge of RM100? The very notion of RM100 for photocopying does not make sense either. If only the lawyers were brave enough to just say, the charge is RM1000 extra for our fees in illegal contravention of the Bar Council’s rules, instead of labelling them with ridiculous names.

    3) No, almost all lawyers use runners for searches, it is NOT the actual fee charged by the Land Office. I suggest the next time you buy a property to look at your invoice.

  4. pablopabla on October 8th, 2007

    Henri : Glad to have you back Henri and thanks for your comments. With all due respect, I think we are going a bit off tangent here. This article discusses the fixed scale fees for professional legal fees chargeable by solicitors in respect of sale and purchase or transfer of immovable properties. It does not deal with discharge of charge (which will come in a later article). Neither does it discuss the amount of disbursements chargeable by solicitors. Whilst legal fees are fixed, disbursements may vary from solicitor to solicitor just like any other type of business. I am sure you would be able to appreciate the difference between professional legal fees and disbursements. The items covered by legal fees are discussed in the first article of mine.

    I also do not see where I have mentioned RM15,000 or RM1,000 anywhere above and hence, would not be able to respond to you on that item you mentioned.

    I am quite curious as to your statement that “No, almost all lawyers use runners for searches, it is NOT the actual fee charged by the Land Office.” as you seem to say that all lawyers do not charge the actual fee charged by the Land Office for searches. Do you have the evidence to back up your statement regarding all lawyers or is it a mere sweeping statement?

    At the risk of repetition but necessary in case there is any misunderstanding, this article is meant to inform the public about the fixed legal fees chargeable by solicitors. All solicitors will have to charge their fees according to the scale prescribed. These are professional fees – much unlike consultation fees when you visit a doctor. Disbursements, however, does not fall under the discussion of this article. It varies from solicitor to solicitor (just like business to business) and property to property (depending on what kind of search is involved, whether consent from authorities is needed, location of property etc).
    It is almost impossible to discuss the reasonableness of disbursements charged by law firms for each and every conveyancing file because each case is different (unless it is a purchase from the developer because in such a situation, it is likely that all the transactions are alike and the disbursements incurred are the same – in which case, as shown above, the scale is some what lower than sub-sales).

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  6. Amir on February 29th, 2008

    Dear good attorney’s,

    I just perusing the article above and slightly required some specific information to my home transactian legal fee’s.

    in general, I wish to bid an apartment at RM40k – RM50k. Could somebody advice me the legal fees that i will be expected to pay and very appreciated with the specific maximum fee on the worst case, if any.

    I just prepare my self prior to bid through the property auction.

    Thanks.

  7. pablopabla on February 29th, 2008

    Amir : If the sale price of the apartment is RM50,000.00, you will need to pay RM500 for legal fees for the sale & purchase transaction. Bear in mind that this excludes disbursements eg. stamp duty, searches, private caveats etc.

    Prior to an auction, you should conduct a search on the property to see if there are any encumbrances such as charge (mortgage) or caveat on the property. You should also find out from the developer / management company (if any) of the property on outstanding charges which the owner may have incurred. It is likely that you will have to pay off these outstanding charges first before the property could be transfered to your name.

  8. Amir on March 5th, 2008

    Pablopabla : Thanks for your advice and your time perusing my queries.

    Another queries, should the lawyer’s send the disbursements invoice to me, may I ask the lawyer from them to prove the disbursements cost.

    And yet, should the lawyers proof the receipt etc.. how much the reasonable allowance for lawyers profit & attandance to be added.

    Thanks.

  9. pablopabla on March 5th, 2008

    Amir : You have the right to ask the lawyer to show receipts for disbursements to be incurred / incurred. You are free to negotiate certain variables in disbursements (eg. photostating charges, transport) but not the legal fees because legal fees are fixed by law. Neither can you negotiate stamping fees because that is also fixed by law.

  10. Amir on March 11th, 2008

    Dear Pablopabla,

    Thank for your good responds on my previous queries.

    Yesterday, I had a discussion with my cousin pertaining legal processing claimed by the solicitors for my cousin property transaction. Thus, I was check roughly and found several items that we could not understand, like:

    1) Master Facilities Agreement, 1st Party assignment, Property Purchase Agreement, Property Sale Agreement .

    we can’t figure and can’t understand the agreement as the property is through auction. Is it necessary?

    2) Stamping fees on Master Facilities Agreement, Stamping fees on 1st Party assignment, Stamping fees on Property Purchase Agreement, Stamping fees on Property Sale Agreement, Stamping fees on Power of Attorney & Stamping fees on SD own occupation & bankruptcy

    Is it necessary as the query 1.

    3) Purchase standard loan documents.

    Is it really the documents up to RM 100.00 while the transport fees are claimed separately?

    4) Deeds of Assignments (By way of transfer)

    Is it necessary?

    5) Consent from developer

    Is it necessary? The developer already imposed consent and management fees separately. and my cousin already paid to the developer.

    6) Stamp Duty on DOA

    Is it cost more than my legal fees?
    (The lawyers charged to my cousin up to RM415)

    For information, the property bought through auctioned unit and at RM40.5K.Thus, my cousin suffered the legal fees at RM3050.00 @ 7.53% from the unit price. In my opinion, the cost should be lower as the Sale & Purchase Agreement not required and comparatively; my friend bought a 2nd hand house with (legal) cost about +/-RM1800 only.

    And yet, How the ‘renumeration act’ affect to the auction transaction solicators/legal fees.

    Please Advice.

  11. pablopabla on March 11th, 2008

    Amir : Whoa! That’s a whole lot of questions there! LOL! Okay, for (1), (2) and (4), I believe that they are necessary. (3) is for the price of the standard loan document. You can check with Bank Negara Malaysia if you feel that the sum charged is exorbitant. (5) depends on the type of consent given. Stamp duty is higher than legal fees due to the scale imposed by law and that would be payable to the Stamp Office. I would advise that you ask the solicitors to explain to you the details of the charges so that you can have a better picture on what you are paying for. All I can say is that it is unlikely that the solicitors have overcharged because the fees are prescribed by law. The disbursements also should not differ much.

  12. Amir on March 11th, 2008

    Pablopabla,

    Thanks for you express respond and laughing out loud huh :p

    actually, what we refer yesterday referring to solicitors remuneration act 1976 and your article above.

    QA) what is the different with my Q.No.1 above with order 2(a)(ii) and 6th sch. item 2(a).

    QB) order 2(c)(ii) and 6th sch. item 2(a).

    QC) effect of order 2(d), 2(e), 2(f)

    thats curious me with the invoice paid by my cousin. just checking.

    btw, i just check with that ‘bank’ and they mentioned that no payment required for the standard loan documents.

    sorry to my cousin huh,

  13. Cat on April 14th, 2008

    Hi Pablopabla,

    I found your article very helpful and would need your expertise advise over here. I’m planning to buy a freehold landed property through an agent for RM380K. Location of property in KL. However, I would like to appoint my own lawyer to represent me. I believe my legal fees alone should be around RM3110 (from your table above-please correct me if I’m wrong). So as not to be caught off guard, could you please advise me what are the other charges and searches involved & how much do I need to pay in total.

    Really appreciate your help in this.

    Thank you.

  14. pablopabla on April 14th, 2008

    Cat : Hello! Yes, the basic legal fee for the Sale & Purchase Agreement is RM3,110.00 as you rightly calculated. Your lawyer may also advise you to enter a private caveat to protect your interests as a buyer which will cost you RM200 in legal fees alone (for entry and RM150 for withdrawal).

    You are also expected to pay stamp duty which will be assessed by the Stamp Office. I would estimate that around RM6,100.00.

    All in all, I would think that you should have RM10,000 in reserves to cater for legal fees and disbursements for the whole transaction. This excludes financing costs.

  15. Cat on April 14th, 2008

    Hi Pablopabla

    Thanks for your advise. At least I won’t have a heart attach later.

  16. Razif R on April 14th, 2008

    Hi,

    I recently purchased a house from the developer. I was very interested to read the Q&A above. I just received the bill from the S&P lawyer and it reads like this:
    Stamping S&P A (born by developer) – 0
    Stamping Deed of Mutual Covenants – 0
    Stamping of MoT – RM7356
    Registration fee on Transfer *- RM650
    Registration fee on Consent to transfer* – RM10
    Adjudication* – RM10
    Search fee* – RM40
    Affirmation Fee* – Rm4
    MIsc* – RM50
    Government Tax* – Rm50

    Could you advise me, sepcifically on the items with (*) as to what they mean & which ones can be negotiatied. I only managed to knock down the MISC charges to 0, as my argument was that their legal fees are paid by the developer.By the same argument, which other fees can be negotiated?

    So far all communications have been sent via snail mail only (not courier), and the rest has been via fax. The purchase value of the house was RM380, and I took an upgrae package which brings the value to RM417k.I took a loan for Rm350k.

    Thanks in advance.

  17. Razif R on April 14th, 2008

    Hi again,

    I will be expecting a similar bill from the loan lawyers, which I was told would be to the tune of RM5772. Do you have some guidelines on the fees I should be expected to pay from the housing loan lawyers? Does it follow the same scale?

    Thanks again. I hope the questions are not a nuisance. This is my first property purchase.

  18. pablopabla on April 15th, 2008

    Razif : Wow! You are already saving much with the developer paying the legal fees. The disbursements payable to the lawyer is pretty standard and justified. Most, if not all of it, are paid to government departments.

    The legal fees for loan is on the same scale as the S&P calculated on the amount of loan i.e. 350k. Stamp duty is RM5 per RM1k of loan.

    The questions are not a nuisance but the negotiating of disbursements with the lawyers might be a nuisance to them! LOL!

  19. Razif R on April 15th, 2008

    Pablopabla: Thanks for the feedback. That gives me a little peace of mind when dishing out the buckets of dough for the property. As a matter of principle, I tend to be very particular about paying only for what I get, so I guess you could say I can be a tough customer at times! ;-)

  20. Razif R on April 29th, 2008

    Pablopabla: When I look at the article you have written above, am I correct to say that for a new house bought from the developer, the lawyers professional fees for the loan lawyer (Rm350k loan) should in fact be RM2030, ie RM2900 x 70% as per the Housing Development (Control & Licensing) Act 1966 or any subsidiary legislation made under that act. If I find that my lawyer is in fact charging RM2900, what action can I take? The loan lawyer is charging the following. Could you please explain what each term means and if the amount seems reasonable, please.

    Professional fees
    Charge RM2900
    Loan Agreement RM200
    Consent to Charge RM300

    Disbursements
    Stamping of Charge RM1780
    Stamping of Loan Agreement RM40
    Registration of Charge RM60
    Registration of Consent to Charge RM10
    Apply Consent to Charge RM70
    Stamping Statutory Declaration RM20
    Affirming Statutory Declaration RM20
    Land search RM40
    Official Land Search for consent RM40
    Bankruptcy Search (Insolvency) RM22
    MISC RM100
    5% government tax RM170

    Thanks in advance.

  21. pablopabla on May 28th, 2008

    Razif R : As a customer, you have every right to ask the solicitor to explain to you the Bill and how each item is charged. There may be a mistake in the legal fees chargeable.

  22. jamie on May 28th, 2008

    pablopabla: I hope you can give me some professional advice on a case related to property. My mom received an injunction from my uncles to stop her from collecting rental for my dad’s (deceased) property as well as a claim of RM700k as they claimed that the property’s rental should be shared by all of them. The property is a 4 storey building (each uncles and my mom own a floor).

    My mom won the injunction case, is the RM700k case still valid if my mom already won the injunction? Her lawyer says that it will be brought to court for full trial. Is that necessary when the judge had acknowledged that the property is belonged to my mom? Thanks in advance for your assistance.

  23. pablopabla on May 30th, 2008

    Jamie : The details which you gave me are still a bit sketchy. Please email me instead. Thanks.

  24. jamie on June 2nd, 2008

    pablopabla: Thanks for your reply. I have met up with my mom’s lawyer last week and things are clearer now. Thanks again :)

  25. ria on July 31st, 2008

    can you help me out pls. do i have to pay solicitors fee for a non sale and purchase of house

  26. ria on July 31st, 2008

    im selling my house and purchasing a new one. we are near completion but because its taking a while for my house to be sold the owner of the house im purchasing backed out…

    so my house still for sale @ the minute…but solicitor asking me to pay them £780.63 for the avorted sale and purchase

  27. Shahril on September 12th, 2008

    Dear Pablopabla,

    I would like to ask a favour from you. I just want you you to estimate the fees that would be charged to me in this transaction. I intend to sell my house for RM60,000 (purchased using a bank loan).

    As the seller:
    1. What is the basic legal fees in the situation above? (Please estimate the maximum fees that the lawyer could charge me)
    2. In ‘reality’ could the seller and the buyer appoint the same lawyer?

    For the buyer:
    1. —same as Question 1 above—

    Thanks, your help is highly appreciated

  28. pablopabla on September 12th, 2008

    ria : Sorry I missed out your comments earlier. I am not aware of the current practice in the UK (I am assuming you are in the UK by virtue of your quoting pound sterling) but I would think that you still need to pay your solicitors for work done notwithstanding the abortion of the proposed sale & purchase.

    Shahril : The legal fee for the seller and buyer will be the same i.e. RM600.00. You should also provide reserves to pay for the legal fees for the redemption of your loan and disbursements. If state consent is required for the transfer, you will also have to incur fees for the application which may differ from state to state.

    As mentioned above, a lawyer cannot act for both the buyer and seller in respect of the sale & purchase agreement. A lawyer may act for one and attest the signature of the other. Attesting the signature is not the same as acting as a solicitor. This is where many people get confused.

  29. wacha on November 24th, 2008

    hellooo alll…

    I just bought a double storey house(free hold) priced at 362k which is sub sale. So could you guys helped me on figuring out how much should i pay for the S&P and other legal fees? pLs HeLP!!
    Thanks in advance..

  30. pablopabla on November 27th, 2008

    Wacha : Legal fees for Sale and Purchase Agreement would be RM2,984 excluding 5% service tax and disbursements. Stamp Duty would be RM6240 for the transfer. Your legal fees will increase if you enter a caveat. I would say you should apportion about RM10,000 to RM11,000 to be on the safe side.

    If you are taking a loan, you will also have to pay legal fees and stamp duty separately unless you are taking up one of those zero-costs package offered by banks where they absorb the costs.

  31. zura on December 28th, 2008

    Hai…
    I nak tanye ckit….
    I dlm proses beli rimah di kinrara puchong…
    rumah 2nd hand….
    harga rumah 60K…
    berapa agaknye bayaran yang berpatutan perlu
    i bayar kepada lawyer untuk buat s&p sahaja…?
    & kepada lawyer yang buat loan aggrement plak, brape
    yg berpatutan?

    Pls…cz i x tau either my lawyer ni charge mahal
    or normal…

  32. iamthewitch on January 19th, 2009

    Hi pablopabla,
    Found that your website is very useful! I have a question, my friend has recently sold a property at a price of RM174k. I asked around and many have told me that as the seller, there would not be any fees incurred except for the broker fees and discharge fee. So I’m wondering if that is true? Because I read from your comments above that the seller will also need to incur legal fees of 1%? What is this for if the buyer is the one preparing the S&P and necessary documents for the transfer?

    Basically, my question would be what are the charges incurred as a seller. :)

  33. pablopabla on January 20th, 2009

    zura : Legal fees for preparation of S&P Agreement would be RM600.00. This excludes application for consent to transfer (if leasehold property). Disbursements are also excluded. The legal fees for preparation of loan agreement is also RM600.00.

    iamthewitch : If the seller prefers not to appoint a solicitor to represent his interests, then the seller would most probably need to pay for fees and disbursements in regards to the Discharge of Charge / Receipt and Reassignment (if there is an existing loan on the property). If the property is a leasehold property, then there would be fees and disbursements payable to obtain the consent to transfer. The legal fees for both the items I mentioned are minimal.

    If, however, the seller appoints his own solicitor to protect his interests, then the legal fees for the Sale & Purchase Agreement would be RM1,668.00 excluding disbursements. Fees for discharge of charge / consent are separate.

  34. iamthewitch on January 20th, 2009

    Thanks a lot! :) Appreciate it :) Will let my friends know, definitely!

  35. Ravinmandy on January 27th, 2009

    Hi!!
    I bought hse in 2004,
    i had financial problem in 2007, i received 1st auction in feb n 2nd on march 2007.

    in march itself before the auction date i hv settle all the outstanding. N i hv ask any payment outstanding the manager say no
    at the suddent i recieved 3rd saman from pejabat tanah. I when pejabat tanah ask them they say my bank instruction, i ask bank they say ask lawyer, when ask lawyer they say im not his client the bank.

    my loan stable until i recieved letter from morgage company say that my loan is nonperforming account.

    But after the auction my loan payment stable. My loan from 133,000 increase to 138,000.

    The legal fee when up to 5k, Is tis true. Pls help.

  36. chipin on February 25th, 2009

    Dear Sir, I am thinking of transferring my house and land to my wife. I would like to know the legal fees and disbufsements involved. A house nearby and on land about the size of mine was sold a few years ago for about RM1.2 million. What will it cost me to transfer the property to my wife on *love and affection” basis. I understand that stamp fees for the transfer of landed property from husband to wife qualifies for 50% discount. Does this stamp duty covers the cost for the change of name of ownership and its subsequent registration in the land office. Please let me know what other charges are involved. Much obliged & many thinks.

  37. Yvonne on September 16th, 2009

    Hi,
    I read thru all the comment, I still in blurr. Hope you can help me clear out all the doubts. This is my 1st time buying house. The house value is RM370K, we borrow RM333K. May I know what is the legal fees involve? Kindly list out in detail as I am so confused. Developer offered free S&P legal fees, stamping fees and they said we need to pay stamp duty. Problem start : banker said they cover loan legal fees, stamp duty and title of transfer. Then, banker said if using their panel lawyer their lawyer can free S&P legal fees and told S&P fees is cheap not compulsory use developer’s lawyer.

    1. How many times we need to pay stamp duty?
    2. Please help est. how much I need to ready money to pay legal fees?
    3. In Bank Negara website, which portion should I go and refer? As I unable to find it.
    4. May I know is title of transfer are same meaning of memorandum of transfer(MOT)? As banker said they will pay title of transfer and I don’t know what is that. I m so louzy. :-(
    5. Are we still need to pay another stamp duty on MOT when we cleared housing loan again?
    6. What is stamping of charge?
    7. Do you think is it worth to switch over to banker panel lawyer?
    8. Please lis out the items of charge involve as I unable to get it on other website.

    Thanks…Thanks….

  38. pablopabla on September 17th, 2009

    Yvonne : Hi! You are buying a house from a Developer. Your house is RM370k. You wish to take a loan for RM333k. This is what you are expected to pay:-

    1) Legal Fees and Disbursements for the Sale & Purchase Agreement (SPA).
    2) Legal Fees and Disbursements for the Loan Agreement (LA).

    For the SPA, your legal fees is based on RM370k. Therefore, the legal fees will be RM3040.00. Since you are buying from a developer, the legal fees is only 70% i.e. RM2,128.00. You will also have to pay stamp duty for the SPA. The stamp duty payable will be RM6,400.00. You will also have to pay RM 106.40 being the 5% service tax on the legal fees and disbursements for smaller items (should be less than RM500.00).

    For the LA, your legal fees is based on RM333k. Therefore, the legal fees payable is RM2,781.00. But because you are buying from Developer, you only need to pay 70% i.e. RM1,946.70. There is a 5% service tax amounting to RM97.35. Then, you will need to execute either a Charge (if there is a Title) or Deed of Assignment (if there is no Title) in favour of the Bank. The stamp duty will be RM1,665.00. You will also need to pay disbursements such as land and bankruptcy search etc.

    You will need to pay legal fees and stamp duty for SPA and LA separately because they are different transactions. You don’t need to pay stamp duty again (based on the above calculation) when you redeem your property from the Bank but you will need to pay nominal stamp duty for the redemption.

    When the Developer and the Bank said they will cover the costs of legal fees and / or stamp duty if you use their lawyer, it basically means they will pay their own lawyer’s fees and also pay the stamp duties on your behalf. In such a scenario, you are not represented by a lawyer separately. The Developer’s and / or the Bank’s lawyers are merely witnessing your signatures when you agree to them acting in this transaction.

    Feel free to ask further :D

  39. Yvonne on September 24th, 2009

    Hi Pablopabla, thanks for your info 1st. Now, I understand that SPA legal fee will be RM2128 and stamp duty of SPA is RM6400. While on LA legal fee is RM1946.70 and stamp duty on LA is RM1665.
    The RM6400 is stamp duty of transfer, pay to Land office? Am I right?
    Is there still have stamp duty of transfer of strata title? 1st RM100K x 1% and next RM270K x 0.5% total cost is RM2350 and transfer legal fee? As I was informed by friend that after properties completed build, we need to pay on transfer of strata title. I am confuse how many times of transfer $ need to pay?
    thx.

  40. pablopabla on September 24th, 2009

    Yvonne : Stamp duty is paid to the Stamp Office, which I believe is a department of the Inland Revenue Board. Once you have paid the stamp duty for the transfer, you need not pay stamp duty again when a strata title is issued. Your lawyer merely need to show your Deed of Assignment (which contains the stamp duty endorsement) to help you prove that you have already paid for the transfer.

  41. muliadi on October 6th, 2009

    i plan to buy house RM175000.how much i will spent to pay for lawyer and stamduty and all related payment.tq

  42. teem on October 19th, 2009

    Hi, i really need your opinion… i have no experience in buying a house. i am buying a rm230k house… so i understand that i have to prepare to pay rm2300 legal fees(correct me if im wrong)….the landlord said that she has S and P and our only task is to apply bank loan to settle everything….
    1.what does she mean?
    2.do i need a lawyer on my behalf since the landlord said she already has a lawyer?
    3.i have to pay 10% deposit….that is 23000….do i pay cash and make a rm207,000 loan? or should i demand to look at the S and P with my lawyer

    Thanks so much for your reply. i really appreciate it considering i have no clue on the process needed on buying house

  43. pablopabla on October 20th, 2009

    muliadi : The contents of this post above would be able to give you the answers.

  44. pablopabla on October 20th, 2009

    teem : You should always appoint a lawyer to act for you as there are many steps involved in the purchase of a house. Though the seller has her own lawyer, her lawyer would not be representing you in the transaction and owes you no duty to advise you on the terms of the agreement.

    In most cases, a purchaser would pay a small booking fee (also known as “earnest deposit”) on the house prior to signing a sale & purchase agreement. This amount varies between 2 to 3% of the sale price. Then, on the day the sale & purchase agreement is signed, the purchaser pays another 7 to 8% to complete a total of 10% as deposit. The balance 90% would be payable within 3 months or more depending on the parties’ negotiation. It is up to the Purchaser to decide how he wants to finance the purchase – whether by cash or bank loan.

  45. teem on October 23rd, 2009

    tq, recently i payed rm2k as the booking fee to the landlord where she signed my payment voucher and then she said that she will give me 7 days for the rest of the deposit….not knowing anything bout buying a house….i agreed…after that i quickly found an agent who will get me a bank laon and refer me to lawyer….suddenly i was suprised when the agent said that normally, the seller will give 14 days so that the buyer would have time to settle loan which took 7-10 days…this will avoid high loss if the loan fail to be approved..she also showed me a copy of Option to Purchase agreement from 1 of her clients stating 14 days…

    i have called the landlord where she said it is true that 14 days is given, but she was desperate for the deposit (money for her business and benefit) and wanted the money 7 days earlier so she can use it which suprised me coz she was taking advantage of my situation…. she then said that if our loan wasnt approved(which she couldnt wait to know), she will return the money back..rm21K for me is a whole lifetime of saving in ASB and im very reluctant to give the money in lum sum…not only im putting the risk of loosing my money, im also putting a risk on the dividen i will get if the money is left in my ASB (say that i dont buy the house)…

    i would like to ask…is it ok if i put that statement she said in the S and P ageement?the part where she will pay back my money if my loan didnt approve?can i do that?im thinking of putting “return rm21000 in 30 days if bank loan isnt approved” in the S and P agreement…

    thanks alot..really appreciate it

  46. Joyce on October 31st, 2009

    Halo Pablopabla,

    So nice to have this website to let ppl ask the question about the legal fee for purchase of property. I have just buy a house of RM148k which get 90% of loan.

    Below is the lawyer fee charged by lawyer:

    S & P agreement RM 300
    Transfer for the consideration 148k RM 880
    Assessment Roll RM 100

    Disbursement:
    stamp duty on S & P agreement RM 40
    Stamp duty on transfer RM 980
    Registration fee on transfer RM 300
    Affirming on statutory declaration RM 20
    Search fee RM 30
    Change of name of assessment roll RM 40
    purchase printed document RM 210
    postage & travelling expense RM 100
    miscellaneous RM 50

    Govn tax RM 147.50
    Total RM 3,200

    May i knw the charges reasonable? Can i know which fee can be negotiatied? what is the fee for assessment roll? Registration fee for transfer need abt rm 300? printing oso need abt rm 210? travelling n courier oso need rm 100?

    Please advice…thanks in advance

  47. pablopabla on November 3rd, 2009

    Joyce : I’m not quite sure what you mean by “assessment roll”. Can you please check with your lawyer again?

  48. Joyce on November 3rd, 2009

    Halo Pablopabla,

    Thanks for the reply. I will try check with my lawyer. Then for the printing, as i knw from my lawyer yesterday, she tell me the printing is included bank loan agreement printing. But i take the ZEC package from bank which the bank loan agreement legal fee will bear by bank. But hw come the printing for bank loan agreement i need to bear for it? I ask my lawyer, they said is like tat 1…i oso not sure is hw for tis…is it this printing i need to bear it?

    Please advice…thanks

  49. pablopabla on November 3rd, 2009

    Joyce : You will have to read the Letter of Offer from the bank to ascertain whether the bank will charge you for the copies of the loan agreement. ZEC may vary from bank to bank and the Letter of Offer would provide a clue on what is included and what is not.

  50. Joyce on November 3rd, 2009

    Icic…okok…thanks for the advise…

  51. eunice on December 1st, 2009

    Halo pablopabla

    I believe you can help me to sort out my question. I’m going through a sub-sale property now. I’ve paid the 10% deposit to the vendor and also paid the lawyer fees as they’ve already settle the documentation (DOA + S&P). After 1 week my lawyer told me that there’s a problem with the S&P as the developer lawyer refuse to accept the signed S&P without the vendor’s ex-wife signature(the property is under two name and the wife already file for divorce and produce a court order to give her portion of the property to the husband). So now after 1 month, the new S&P is still pending her (ex-wife) signature. Seems like everyone is taking their sweet time here. My lawyer also doing the same thing as I already paid the fees therefore it seems like he’s not doing his job. How am I protected in this case? If the ex-wife doesn’t want to sign, can this sale still be continue?

  52. pablopabla on December 1st, 2009

    eunice : Hi, how many lawyers are there in the sale and purchase transaction (excluding the lawyer acting for the developer)?

  53. Ali on December 8th, 2009

    hye there,

    Im a bit curious. Im planning to buy an apartment @ 150K (leasehold). The agent offer me her lawyer that cost 3k-3.5k to do all the purchasing agreement. She did mention that since im a 1st time buyer, 50% discount will be given but im not sure to which expenses. Would that be a very good deal, having to pay that range of 3k-3.5k for a 150K property?
    anyway thanks a lot man…u did teach me sumtg..

  54. pablopabla on December 9th, 2009

    Ali : The estimated legal fee would be RM1,500.00 for the Sale and Purchase Agreement. Service tax at RM75.00. Stamp duty would be RM2,000.00. Add other disbursements estimated at not more than RM500.00.

    The law does not allow the granting of discounts for legal fees. Neither is there any discounts offered by the Government as far as stamp duty is concerned. So, if the lawyer is giving you a discount, you are essentially dealing with a lawyer who has no qualms breaking the law just so that he can get your work. Now, though you may want to rejoice in saving money (who doesn’t?), do bear in mind that it is highly likely that the lawyer would be paying a certain commission to the agent (for introducing the work). If the lawyer is earning substantially lesser than what he is rightfully entitled to under the law, do you seriously think that you’ll get a good deal? I always believe that if you pay peanuts, you’ll get monkeys.

    And always remember this : there is no such thing as a standard agreement. If there is, there would not be any need for lawyers anymore to protect your interests because everything is standard.

  55. Ali on December 14th, 2009

    hye again,

    I’ve already talk to the lawyer regarding the discount. she told that since im a first time buyer, so i entitle for a 50% discount for the stamp duty. So i have to pay RM 4100 upfront and then she will reimburse me RM1000 for the discount later. May i know whether all this is true? Did the gov. really give discount?

  56. pablopabla on December 17th, 2009

    Ali : As far as I know, there is no provision for 50% discount for first time buyer. Transfers between spouses or parent to child for love and affection qualify for stamp duty at half-rate. So, I’m not aware where the discount comes from. If you are buying the property at RM150k, the stamp duty payable is only RM2,000.00. I think the lawyer is misrepresenting about the discount because she is not allowed, under the law, to grant any discount on legal fees and meanwhile, stamp duty is also fixed by law. So, instead of saying that she’s granting a discount on legal fees, she claims that it is the government who is providing the discount.

  57. syifa on December 28th, 2009

    Hi,
    Can you please advise whether this legal fees for loan is reasonable or not for housing loan of RM 118,588.00?

    Legal Fees:
    Property Sale Agreement RM 1,190
    Property Purchase Agreement RM 150.00
    Memorandum of Charge RM 150.00
    Entry & Withdrawal of Private of Caveat RM 350.00
    5% Service Tax RM 92.00
    Total = RM 1932.00

    Stamping:
    Property Sale Agreement (ori) RM 595.00
    Duplicate (3 copies) RM 30.00
    Memorandum of Charge RM 40.00
    Letter of Offer RM 35.00
    Statutory Declaration RM 20.00
    Total = RM 720.00

    Registration:
    Memorandum of Charge RM 150.00
    Entry & Withdrawal of Private Caveat RM 350.00
    Application & Registration Fee on Consent to Charge RM 150.00
    Total = RM 650.00

    Disbursement:
    Land Search RM 120.00
    O.A. Search RM 50.00
    Purchase Agreement RM 250.00
    Affirmation RM 50.00
    Certified True Copy of Title RM 50.00
    Total = RM 520.00

    Others:
    Telefax/telephone/courier service RM 170.00
    Miscellanous, Stationary RM 50.00
    Transportation, travelling, etc. RM 350.00
    Total = RM 570.00

    Grand Total = RM 4,392.00

    Please advice. Thank you.

  58. syifa on December 29th, 2009

    Hi, regarding my previous question. I’m now buying an apartment. It’s still in a process. Right now the lawyer for bank loan has given the the invoice. But i’m curious whether their charges are reasonable or not. For your information, the legal fees has been included in the loan, but now i have to top-up RM1,100 more.

  59. pablopabla on December 29th, 2009

    Syifa : May I know what is the topping up for?

  60. syifa on December 29th, 2009

    My loan only cover RM 3,292 for legal fees. Before this, i never knew that i have to top-up anymore for the legal fees. But after i received the invoice from the lawyer, only i knew that i have to pay the actual legal fees amounting RM 4,392. The lawyer didn’t mention much why they charge more for RM1,100. Only they said that the bank require the caveat.

  61. pablopabla on December 29th, 2009

    Syifa : Okay. First of all, legal fees are distinct and separate from service tax and disbursements. You have to split them apart. Next, you have to read your Bank’s letter of offer to see what is specifically included in their loan package – whether they cover the legal fees, service tax and disbursements or just legal fees alone. It is hard for me to advice you without having a look at the letter of offer.

    In any event, the lawyer has a duty to explain to you what is being charged, what is absorbed by the bank and what is payable by you.

    The legal fees for the Loan Agreement should be 1% of the loan sum i.e. RM1,185.88. Legal fees for the Charge would be 10% of the legal fees for Loan Agreement i.e. RM118.59. Legal fees for entry of private caveat would be RM200 and withdrawal of private caveat would be RM150.

  62. syifa on December 29th, 2009

    Thank you for your info.

  63. Nurul on December 30th, 2009

    Hi Pablopabla,

    I have received a letter form my developer asking to sign the MOT. My house price is RM189,100 ( fully government loan ). Could you please advice me what is the lawyer fee for this MOT?

    Thank you very much.

  64. Ali on March 18th, 2010

    Hye,

    Can u tell me when is the right time to pay for legal fees and stamp duty. Since i havent paid the S&P lawyer yet for any of both amounts. Eventhough the S&P have been made and delivered to the Bank panel lawyer and now the S&P lawyer is in the midst of awaiting the vendor’s bank statement. My bank is now awaits that statement before they can disburse the first phase of payment to the vendor’s bank. So back to my question, should i pay my lawyer now or after the disburse of first payment.
    p.s my S&P lawyer is also vendor’s lawyer.

  65. Alicia on March 19th, 2010

    Pablopabla,
    For a joint name property, if one of the property owner is at abroad, what are the legal choices for the owner to sign the S&P? Faxes, emails are recognised?
    Thank you in advance!

  66. pablopabla on April 20th, 2010

    Ali : Depends on the lawyer.

    Alicia : The original S&P has to be forwarded to the other owner to be signed before a Notary Public (if he is residing in a commonwealth country) or before the High Commissioner of Malaysia.

  67. skwang on June 1st, 2010

    Hi,
    I am buying a new condo for abt RM295000 and take a loan of RM274K inclusive of MRTA. The developer is paying for the legal fee of S& P as per their brochure.The legal fee is estimated at RM5585, is it reasonable. As I am buying the property from the developer, from your past enquiries, I am suppose to pay only 70% of the LA legal fee am I right, But when I enquired the developer told me that the panel lawyer is not allow to give any discount, please advise.

  68. pablopabla on June 15th, 2010

    skwang : When you mentioned that the developer is paying for the legal fees, then rightfully, you will not be required to pay towards the same. And yes, lawyers are not allowed to give discounts on scale fees. For such a transaction (purchase from a developer), the legal fees would be 70% of the prescribed fee since the rules stipulates it.

  69. Fiona on June 26th, 2010

    Hi Pablopabla,

    I received qiotation from my lawyer for a sub-sale property purchase at 325,000. The charge is extremely shock to me, could you pls help me to review is there any item that is over-charge or double charge? Thanks a lot.

    Legal Fees

    ———-

    Sale and Purchase of Agreement 2,725.00

    Filing of CKHT 2A (x 2 pax) 400.00

    Lodging & Withdrawal of Private Caveat 350.00

    —————

    3,475.00

    Add: Service Tax 5% 173.75

    ——————

    3,648.75

    Disbursement

    ———————

    Land Search 80

    Bankruptcy Searches 50

    Stamping of Sale and Purchase Agreement 40

    Estimated stamping of Memorandum of Transfer (Subject to valuation) 5,500.00

    Entry Private Caveat & Notice 320

    Registration fee – Withdrawal of Private Caveat 60

    Registration for Transfer 300

    Affirmation fees 40

    Adjudication fees 10

    Transportation and dispatch charges 250

    Telephone calls, facsimile 150

    Misc 50

    Total Disbursement = 6,850.00

    So,

    Total = legal fees + disbursement = 3,684.75 + 6,850.00 = 10,498.75

  70. pablopabla on June 26th, 2010

    Fiona : The legal fees and service tax are as prescribed under the law. There is no over or under-charge. As for the disbursements, the amount quoted is also fair and reasonable. If you really want to, you might want to ask your lawyer if he can reduce the transportation and telephone charges. Do consider that you are buying a property worth RM325,000.00 and your legal fees is only 1.07% of the transaction cost. That is what your lawyer is actually earning from you for the professional work done to protect your interests. The legal fees charged is what he is entitled under the law. The rests are fees paid to the relevant government agencies and expenses.

  71. pablopabla on June 26th, 2010

    WPY : Every piece of property is supposed to have its own identity, just like a car has its own registration card. However, sometimes, the land office has not issued a title to the individual houses (especially those newly built). When a buyer takes a loan, he needs to pledge his property to the financier. If the title has not been issued by the land office, then the buyer will have to sign a document known as a Deed of Assignment to assign his rights in the property to the financier. If a title is available, then the buyer signs a Form to have the title endorsed (charge) in favour of the financier.

  72. pablopabla on June 26th, 2010

    Fiona : Payment to the lawyer (for fees and disbursements) is usually upon signing of the Sale & Purchase Agreement. The deposit for the purchase of the property is usually issued in the name of the Vendor.

  73. yleng on July 6th, 2010

    wan to get advice…if purchase house in rm180,000 how much shld i reserve for the lawyer fee for both side (S&P and bank side)..thanks in adv

  74. Simon on July 27th, 2010

    Recently, I have purchase a new under con property and the developer is providing SPA for free. But when their lawyer call me to proceed the SPA, they are forcing me to let them do the bank loan agreement in order to get the SPA free. I have double check with the developer again. She told me that, if they ask, ask them to refer to the developer.

    Why such things happen? My main concern is I would afraid that the lawyer would provide some form or letter to sign together with the SPA and enforcing me to let them do the bank loan agreement.

    Your advice would be grateful.

  75. pablopabla on July 30th, 2010

    Simon : The lawyer cannot force you to do things you don’t wish to do. If he persists, ask for a formal letter from. Thereafter, report to the Disciplinary Board of the Malaysian Bar.

  76. pablopabla on July 30th, 2010

    yleng : Legal fees alone would be RM1,710.00 for the S&P. The legal fees for the loan depends on how much loan you are taking. Take note that legal fees does not include 5% service tax and disbursements.

  77. harvy on August 5th, 2010

    May I know how long it takes to complete a Memorandum of Transfer?
    I’ve paid for the charges 9 months ago and have yet to hear from the lawyer firm.

  78. Sherry on August 6th, 2010

    What will be the simplest and cheapest way to transfer the ownership of the property between siblings? In year 2003, me and my sister bought an apartment RM165K. We have not done the perfection of transfer upon issuance of strata title. Now, my sister sold her share to me and I have paid her. I intend to make full settlement to the end financier. My problem is how to remove my sister name from the title? I was advised by lawyer to do a Love & Affection transfer? What will be the cost incurred? Do you have any advise?

  79. pablopabla on August 6th, 2010

    Harvy : The endorsement of a transfer on the land title takes place when the Land Office receives the duly executed and stamped Memorandum of Transfer. The whole process (length of time needed) from the signing of the sale & purchase agreement leading to the endorsement of transfer on the land title depends on many factors which is difficult for me to advise without having fuller details.

  80. pablopabla on August 6th, 2010

    Sherry : Your lawyer is right. Firstly, redeem the property from the financier. Then, get your sister to transfer her portion to you for love and affection. The legal fees chargeable would depend on the Revenue Office’s assessment of the market value of the property divided by half.

  81. Li on August 19th, 2010

    What do you mean by the legal fees chargeable would depend on the Revenue Office’s assessment of the market value of the property divided by half. Can you give an example?

  82. pablopabla on September 2nd, 2010

    Li : All immovable property sale transactions require a valuation by the Revenue Office to ascertain the market value and stamp duty payable. Once the Revenue Office ascertains the market value, eg. RM300,000.00, then your solicitor’s fees would be based on half of RM300,000.00. In other words, RM150,000.00. Then, apply the scale fees on the RM150,000 to determine the legal fees payable.

  83. AL on September 7th, 2010

    Dear Pabloplabla,

    I wish tp purchase a condo from my cousin at RM500k. I am intending to settle all her outstanding loan with the bank and pay her the balance without taking a bank loan (ie: cash buyer). Her condo is already 7 years old and therefore will not incur any RPGT. We both wish to have a standard S&P and will sign it with the same lawyer as the one she appointed earlier when she purchased her condo. Therefore, I believe our legal fees shd be cheaper. Her developer just issued letter to inform her tht her strata title is out and since she is selling to me her leasehold condo, can it be transfered to my name directly? I receive the quote from the lawyer and they are charging me:

    Legal feesRM3,950.00

    CKHT 2 RM 200.00 RM4,150.00
    ==========
    RM 4,150.00
    5% GST RM 207.50

    Disbursement
    1. Stamp Duty on the Sale & Purchase Agreement RM 40.00
    2. Registration of transfer RM 400.00
    3. Registration of Blanket Consent RM 130.00
    4. Stamp Duty on the Memorandum of Transfert (estimated) RM 9,000.00
    5. Developer’s Confirmation fees RM 50.00
    6. Land Search RM 100.00
    7. Telephone, fax and printing RM 120.00
    8. Courier service RM 150.00
    9. Travelling RM 200.00
    10. Miscellaneous RM 60.00 RM 10,250.00
    ==========
    RM 14,607.50
    =========

  84. AL on September 7th, 2010

    sorry, i accidentally sent the incomplete email to you.

    Continue
    ————

    My cousin’s fee is :

    RM300.00

    Receipt & Reassignment RM 400.00

    Direct Consent RM300.00

    CKHT 1 RM300.00 RM1,300.00

    =========
    RM 1,300.00
    5% GST 65.00
    Disbursement
    1. Affirmation on Statutory Declaration RM 20.00
    2. Stamping on the Deed of Receipt & Reassignment RM 50.00
    3. Registration of Power of Attorney RM 20.00
    4. Telephone, photostating & fax RM 100.00
    5. Travelling charges RM 200.00
    6. Courier Charges & Posting RM 150-00
    7. Miscellaneous RM 60.00 RM 650.00
    ==============
    RM 2,015.00 ==============

    May I know if this fee is reasonable considering that we are using the same lawyer and that I am paying cash and paying off her bank loan soon. I am paying her the total of 500k directly without going through the lawyer. We just go and sign the S&P without question. My cousin and I are very close and we have no problem. In fact, I have already paid half of the amount and waiting for bank to let us know the redemption amount to settle off her loan. We just need an S&P to transfer the condo to my name. Will I be able to get a cheaper rate than the above from another lawyer? We thought by using her existing lawyer (whom she bought the condo from), we can save some money. But it appears to be quite expensive. Do you think the fee is reasonable? If not, can you recommend me another lawyer? Thank you.

    Thank you.

  85. pablopabla on September 7th, 2010

    AL : On the first part of your question, the lawyer’s quote is correct and follows the provisions under the Legal Profession Act 1976 and the Solicitor’s Remuneration Order 2005. Under the SRO 2005, no discount may be given for the legal fees charged – which is RM4,150.00 only in your case. Whilst you may feel that it is a friendly transaction, the solicitor is rendering a professional service and he is taking his work seriously.

  86. pablopabla on September 7th, 2010

    AL : On the 2nd part of your question, again, this lawyer is quoting based on what the law stipulates. I am not in a position to recommend another lawyer. If you were to come to me, I will also be charging the same. Do note that any lawyer who gives a discount are in breach of the Solicitor’s Remuneration Order 2005. Would you willingly pay a lawyer to do your job albeit at a discount if this very lawyer is one who knowingly breaks the law?

  87. sherry on September 28th, 2010

    thanks for your feed back regarding the transfer among siblings share/portion for love and affection. The apartment assessment value is RM160K. What is the cost I should pay for the transfer of my sister’s share to me as a gift??

  88. JS SIOW on December 29th, 2010

    ANYONE CAN TELL ME, MY LAWYER CHARG IS REASONABLE?
    HOUSE PUR PRICE RM 183,000

    LEGAL FEE RM 1731
    CKHT 2 RM 300(MY DAD N ME)
    5% GOV TAX RM 96.55
    STAMPING S&P RM 40
    STAMP DUTY RM 1330(50%)
    REGISTRATION RM 300
    5% GOV TAX AGAIN RM 96.55
    BY POST RM 300

    TOTAL RM 4194.10

  89. JS SIOW on December 29th, 2010

    this is my first time pur house, i just received quotation from my lawyer, and i feel quite expensive…so anybody can give me advise?

  90. pablopabla on December 29th, 2010

    JS Siow : The fees are as per the law. Disbursements are also accurately reflected.

  91. JS SIOW on December 29th, 2010

    thank so much for ur feed back. tqvm!

  92. WILSON SELING JALONG on March 19th, 2011

    I bought a house for RM248,000 end of 2007. I paid RM500 for booking fee. Sales/marketing officer asked for RM1000.00 for commission. i paid Rm1500.00 on 16 Feb 2008 for legal fee but was given a temporray receipt value at RM3,388.00. the developer informed me that the price of my house was revised to RM246,000.00 on 10 Dec 2007. When i asked for the difference of RM2,888.00, i was told that the money is for paying legal fee. How come i have to pay another RM2888.00 when the price of the house was reduced to RM246,000.00. I got confused and do not know what the developer and legal firm are doing. Would you mind explain all these to me?
    TQ

  93. pablopabla on March 21st, 2011

    Wilson : Ask for a copy of the Invoice for the Legal Fees & Disbursements from the lawyer. Based on a selling price of RM246,000.00 and being a purchase from a developer, the legal fees (excluding disbursements) alone would be RM1,520.40.

  94. CL on September 6th, 2012

    I bought a house at RM250K,taking loan at RM198,050 ( including MRTA), when i receive a invoice from lawyer for LA, the lawyer fee & stamp duty is charged as per standard. but i confuse about the entry & withdrawal of private caveat . The lawyer charge me 2 times.( under disbursement site charged RM420.00, professional site it charged RM350.00 Total RM770).I bought the house direct from owner .Is this charges compulsary or double charge ? My S&P lawyer was verbally inform me they will do the tittle search for me.Shall i need to pay this entry & withdrawal to the LA lawyer ?Hope to hear from yr asap coz i must sigh the agreement tomorrow.Thks.

  95. pablopabla on September 6th, 2012

    CL : Private Caveats are entered to protect the interest of the Purchaser. This will prevent the Vendor from attempting to deal with the Property eg. to sell to another person, etc. after having signed an agreement to sell to the Purchaser. The client will have to pay his solicitor the Legal Fees to draw out the Entry of Private Caveat [RM200] (as well as Withdrawal of Caveat [RM150]) and pay the Disbursements (registration fee for entry and also withdrawal) which is about the amount quoted by your solicitor. The Purchaser can always choose not to enter a private caveat and save himself the fees and disbursements but in the event the Property is sold to another person and complications arise, the Purchaser is likely to have to pay multifold legal fees and disbursements to resolve the legal mess.

    It is always necessary for the Purchaser’s solicitor to conduct a search on the Title to ensure that the Property is legit and free from encumbrances other than that disclosed by the Vendor.

    Hope you’ll find the above helpful.

  96. iza on April 16th, 2013

    Hi,

    can someone help to explain me these cost and how they calculate it? im buying a house cost of RM270k and notice charges that i didn’t familiar with..

    The house status still under developer and owner wants to transfer the status directly to ours.

    below are charges that i need clarifications :

    CKHT 2A Form – RM400 (is that bcoz of im sharing this house with my husband in S&P? how they calculate this or can this amount negotiated?

    Registration of Transfer – RM200 (what this is about?)

    Land search – RM90 (can this be negotiated?)

    Photostat and travelling amount of RM250 (negotiated?)

    Please i hope someone could help me clarify this :(

  97. pablopabla on April 16th, 2013

    Iza : CKHT2A Form is chargeable at RM200.00 per person. So, where the house is in both you and your husband’s name, then the total amount would be RM400.00. This is provided under the 5th Schedule of the Solicitors’ Remuneration Order 2005 and non-negotiable. If you wish to save this amount, you can submit the CKHT2A Form yourself to your IRB branch.

    Registration of Transfer means the fees payable to the Land Office to register the transfer of the Property.
    Land Search – you can ask the lawyer for the land office receipt on the amount paid for the land search.
    Photostat and Travelling – You can ask for detailed breakdown as this comes under disbursements.

  98. iza on April 17th, 2013

    Thank you for your detail explanation. :)

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