Comments on: Legal Fees for Property Transaction – Sales & Purchase

By: Nurul

Nurul — Wed, 30 Dec 2009 00:05:34 +0000

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.

By: syifa

syifa — Tue, 29 Dec 2009 05:42:56 +0000

Thank you for your info.

By: pablopabla

pablopabla — Tue, 29 Dec 2009 04:15:48 +0000

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.

By: syifa

syifa — Tue, 29 Dec 2009 03:56:21 +0000

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.

By: pablopabla

pablopabla — Tue, 29 Dec 2009 03:27:35 +0000

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

By: syifa

syifa — Tue, 29 Dec 2009 03:14:25 +0000

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.

By: syifa

syifa — Mon, 28 Dec 2009 10:18:46 +0000

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.

By: pablopabla

pablopabla — Thu, 17 Dec 2009 08:57:23 +0000

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.

By: Ali

Ali — Mon, 14 Dec 2009 03:47:56 +0000

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?

By: pablopabla

pablopabla — Wed, 09 Dec 2009 02:12:18 +0000

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.