Legal Fees for Property Transactions - Discharge of Charge and Deed of Reassignment
We are now in the fifth installment in my series on Legal Fees for Property Transactions. Today, I will share with you the scale legal fees applicable for Discharge of Charge and Deed of Reassignment. If you have finished paying your loan and wish to redeem your immovable property pledged as security, you will need to go through a procedure known as the Discharge of Charge (if your property comes with individual document of title or strata title) or the signing of a Deed of Reassignment.
As always, it would be beneficial if you read the introduction to the Legal Fees before continuing reading here if you have not done so earlier. A reading of that introductory article would give you an idea of what this article is all about.
The scale fees chargeable by a solicitor in respect of Discharge of Charge and Deed of Reassignment are prescribed in the Fourth Schedule of the Solicitors’ Remuneration Order 2005:-
| Discharge of Charge | Scale of Fees |
| First title | RM300 |
| Each additional title | RM50 in the same instrument |
| Deed of Reassignment | |
| First property | RM300 |
| Each additional property in the same deed | RM50 |
If the Deed of Reassignment includes a Revocation of Power of Attorney, an additional fee of RM100 shall be payable to the solicitor.
In a case of where a discharge of charge or deed of reassignment is :-
a) prepared by the financier’s / chargee’s solicitors and the signature of the attorney for the financier / chargee is attested by the said solicitor, and the instrument is thereafter forwarded to the borrower / chargor’s solicitors to complete the transaction, the remuneration of the financier’s / chargee’s solicitor and of the borrower’s / chargor’s solicitors shall each be 50% of the applicable scale fee in this Schedule; or
b) prepared by the borrower’s / chargor’s solicitor and the instrument is forwarded to the financier’s / chargee’s solicitor for attestation of the signature of the attorney for the financier / chargee only, the solicitor for the financier / chargee may only charge a fee for attestation as specified in the Fifth Schedule and the remuneration of the borrower’s / chargor’s solicitor shall be RM300.
Hence, as seen above, it is important for the chargor especially to know who prepared the instrument. If the instrument is prepared by the financier’s solicitors, the chargor is expected to pay only 50% of the applicable scale fee. However, if it is prepared by the chargor’s solicitors, the chargor is expected to pay RM300.
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