We often encounter the question of whether a quotation was “overcharged”. This article may help you identify whether a quotation was indeed overcharged.
Q1: How does a law firm quote its fee for conducting a sale and purchase transaction?
The Legal Fee for conduct of a sale and purchase transaction is governed by the Solicitors’ Remuneration Order 2023.
Q2: As a buyer for a sub-sale property which is free from encumbrances and restriction-in-interest, what may I expect in a quotation?
Mainly, you may expect:
Legal Fees
- Legal Fee for sale and purchase transaction (see: Q5)
- Fee for preparing and filing of RPGT forms (Borang CKHT)
Stamp Duty
- Stamp Duty for Sale and Purchase Agreement
- Stamp Duty for Borang 14A / memorandum of transfer (see: Q&A 7)
Disbursements
- Registration Fee
- Miscellaneous Expenses
Q3: As a seller for a sub-sale property which is free from encumbrances and restriction-in-interest, what may I expect in a quotation?
Mainly, you may expect:
Legal Fees
- Legal Fee for sale and purchase transaction (see: Q5)
- Fee for preparing and filing of RPGT forms (Borang CKHT)
Disbursements
- Miscellaneous Expenses
Q4: Will there be any other fees involved apart from the above?
If you are a seller, it depends on the “status” of the property, for example, whether the property is charged to a financier (bank) or third party, whether there’s restrictions-in-interest (requiring state consent), whether the property is still under the developer’s name, etc.
If you are a buyer and you are applying for a loan to purchase the property, a separate set of fees will be incurred.
Q5: What is the legal fee for sale and purchase transaction?
Whether the lawyer is acting for the seller or the buyer, the scale fee shall be as follows, and a maximum of 25% discount may be given at the discretion of the lawyer:
| Sale and Purchase Price or Adjudicated Value | Scale Fee |
|---|---|
| First RM500,000 |
1.25% (subject to min. of RM500) |
| Next RM7,000,000 | 1% |
| Exceeding RM7,500,000 | 0% - 1% |
Note: The above does not apply in a sale and purchase transaction governed under the Housing Development (Control and Licensing) Act 1966 [Act 118]
Illustration
Sale and Purchase Price or Adjudicated Value: RM800,000
RM500,000 x 1.25% = RM6,250
RM300,000 x 1% = RM3,000
Total = RM9,250.00
25% Discount (-) RM2,312.50
Total (After Discount) = RM6,937.50
Q6: May I ask for further discount exceeding the maximum of 25% discount?
It is not allowed under the Solicitors’ Remuneration Order 2023. By giving discounts of more than 25%, it is considered a misconduct and may void the Professional Indemnity Insurance (“PII”) Scheme, PII insurer may not respond to any claim for civil liability.
Q7: How much is the stamp duty based on sale and purchase price or adjudicated value of RM800,000?
Illustration
Sale and Purchase Price or Adjudicated Value: RM800,000
First RM100,000 x 1% = RM1,000
RM400,000 x 2% = RM8,000
RM300,000 x 3% = RM9,000
Total = RM9,000.00
Q8: Can the seller and buyer “share” a lawyer for the sale and purchase transaction?
No, acting for the seller and the buyer in the same transaction creates a conflict of interest.