Legal Fees For Buying A House

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Legal fee for buying a house from any homeowner/public auction/developer complies a scale published by SRO (Solicitor's Remuneration Order 2005).

However, the amount of misc charges or disbursement may differ. Please keep in mind, there are two agreement involved when buying home. First, S&P (Sale and Purchase Agreement), and second, Loan Agreement. The scale for both agreements is similar, though.

• First RM150k = 1%(Minimum RM300)
• RM150k -RM1mil = 0.7%
• RM1mil - RM3mil = 0.6%
• RM3mil - RM5mil = 0.5%
• RM5mil - RM7.5mil = 0.4%
• Above RM7.5mil = negotiable (Minimum 0.1%, and not more than 0.4%)
  

In other case, when buying a property with a standard S&P Agreement from developer, the amount will be discounted as follow;

• Below RM45k = RM250
• RM45k - RM100k = Less 25% from the amount you get according to the scale
• RM100k - RM500k = Less 30%
• Above RM500k = Less 35%

Next, stamp duty for Loan Agreement, you have to pay RM5 for every RM1k. The total will be stamped on your original document. Beside that, you have to pay for MOT (Memorandum of Transfer Title) when that particular house is ready to occupied and the the grant has been released. The scale;

• First RM100k = 1%
• RM101k - RM500k = 2%
• Above RM500k = 3%

Lastly, there are other payments you should put on your note;

• Every professional charge is subjected to 5% service tax.
• Other charges which is concluded in Forth and Fifth Schedule Legal Professional Act 1976.