Sale and Purchase of Houses Process

8. Lawyers' Fees

First Schedule of SRO

Sale and Transfer		Scale fees
Consideration/Adjudicated value(whichever is the higher)

For the first RM100,000(e.g. a house purchased at RM50,000 will attract RM500 fee i.e. 1% of RM50,000)		1.00%

For the next RM4,900,000(e.g. a house purchased at RM500,000 will attract RM3,000 fee i.e. first RM100,000 - 1% = RM1000 next RM400,000 - 0.50% = RM2000)		0.50%

For the next RM5,000,000		0.25%

Where the consideration/adjudicated value (whichever is the higher) is in excess of RM10,000,000		Negotiable on the excess but shall not exceed 0.25%

There shall be a minimum scale charge of RM200.

Provided that in any transaction where a standard Sale and Purchase Agreement as provided under the Housing Developers (Control and Licensing) Act 1966 or any subsidiary legislation made thereunder is applicable and the consideration for the transfer of the property is RM 100,000 or below, then the following rates shall apply:

(a) Where the consideration is RM30,000 and below drawing agreement of sale to completion:

Vendor's Solicitor

RM120

Purchaser's Solicitor

RM120

(b) Where the consideration is in excess of RM30,000 but not more than RM100,000:
drawing agreement of sale to completion:

Vendor's Solicitor Scale fees

less 25%

Purchaser's Solicitor Scale fees

less 25%

Lease
Monthly rent	Scale Fees

For the first RM10,000	1/2 month's rent

Thereafter	1/5 month's rent

There shall be a minimum scale charge of RM200.

Tenancy

Monthly rent

Scale Fees

For the first RM10,000

1/4 month's rent

Thereafter

1/10 month's rent

There shall be a minimum scale charge of RM200.

Note: The amendments to the Second Schedule of the SRO are awaiting gazette.

Third Schedule of SRO

Discharge of Charge/Deed of Reassignment.

First title/property		RM200

Each additional title/property		RM20

If the Deed of Reassignment includes the Revocation of Power of Attorney, an extra RM50 shall be charged.

Fourth Schedule of SRO

Charges, Debentures and other Security Documents.

Amount Secured		Scale Fees

For the first RM100,000		1.00%

For the next RM4,900,000		0.50%

For the next RM5,000,000		0.25%

Where the amount secured is in excess of RM10,000,000		Negotiable on the excess but shall not exceed 0.25%

For principal instrument		Full scale


For each subsidiary instrument within subsection 4(3) of the Stamp Act 1949		1/10 scale or RM1,000, whichever is the lower

subject to a minimum fee of RM200 for the Principal instrument for each transaction.

Provided that in any transaction where a standard Sale and Purchase Agreement as provided under the Housing Developers (Control and Licensing) Act 1966 or any subsidiary legislation made thereunder is applicable and the consideration for the transfer of the property as well as the loan sum is RM100,000 or below, the following rates shall apply:

(a) where the consideration as well as the loan sum is RM30,000 and below:

where solicitor acts for chargor or chargee
RM120

(b) where the consideration as well as the loan sum is in excess of RM30,000 but not more than RM100,000:

where solicitor acts for chargor or chargee scale fees
less 25%

Fifth Schedule of SRO

Preparing, filing or witnessing miscellaneous documents.

(a) For witnessing execution of a document		RM50.00 for first and RM10.00 for each subsequent copy

(b) For witnessing execution of a document and giving an attestation certificate (if any)		RM100.00 for first and RM10.00 for each subsequent copy

(c) ROC forms under section 108-113		RM200 per set (Forms 33 & 34 as one set)

(d) CKHT 1 forms		RM200 per form

(e) CKHT 2 forms		RM100 per form

(f) Application for consent from State Authority/State Statutory Body		RM200 per application

(g) Entry of caveat pursuant to sale and purchase agreement and loan transaction		RM150 per title

(h) Subsequent title		RM20 per title

(I) Withdrawal of caveat		RM100 per title

(j) Subsequent title		RM20 per title

In addition to the foregoing a charge not exceeding RM50 may be made for miscellaneous expenses.

Sixth Schedule of SRO

Non-contentious work for which no provision is made by means of a scale or fixed sum shall be such sum as is fair and reasonable having regard to all the circumstances of the case, and in particular the following circumstances:

(a) the importance of the matter to the client;
(b) the skill, labour, specialized knowledge and responsibility involved on the part of the solicitor
(c) the complexity of the matter or the difficulty or novelty of the question raised or both;
(d) where money or property is involved, the amount or value thereof;
(e) the time expended by the solicitor;
(f) the number, and importance of the documents prepared or perused without regard to length;
(g) the place where and the circumstances under which the services or business or any part thereof are rendered or transacted.

You will also be charged for expenses such as title, company, and bankruptcy/insolvency searches if you instruct the lawyer to conduct them, and transport. But miscellaneous charges cannot exceed RM50.

9. House Seller's Guide

Documents/ information you must provide buyer/buyer's solicitors

(a) Copies of your previous Sale & Purchase Agreement and Loan Agreement/Title.

(b) Current year quit rent receipt.

(c) Current year assessment receipt.

(d) Redemption Statement from your bank (if you have charged your house to the bank).

(e) Letter of Undertaking to purchaser's bank to refund purchaser's bank loan released to you in the event the transfer/deed of assignment signed by you in favour of purchaser cannot be registered/is defective.

(f) Income Tax file reference number.

10. CKHT form (required to be submitted by Vendor and Purchaser to Inland Revenue Department under provisions of the Real Property Gains Tax Act 1976 (Act 169)(RPGT))

(1) Under the RPGT Act, you have to submit CKHT form 1 (for seller) and CKHT form 2 (for buyer) within 30 days from date of your Sale & Purchase Agreement.

(2) You can fill in the form and submit it yourself, or instruct the legal firm acting in the Sale & Purchase Agreement to fill and submit same for you, in which case you would have to pay its professional fees. If you submit the form on your own, you must provide evidence of such submission to the purchaser's solicitors i.e. an acknowledgment of receipt of the form by the Inland Revenue Department.

(3) Some material information needed to be included in the form:-

(a) your income tax reference number;

(b) copy of your previous Sale & Purchase Agreement to prove the price at which you bought your house;

(c) your IC No. and correspondence address;

(d) expenses which you want to claim as deductions:-

e.g. receipt for your legal fees and disbursements incurred to buy your house;
receipt for renovations done to house and receipts for agent's commission, etc.

(4) An individual is entitled to claim exemption from RPGT in respect of the disposal of one private residence only in his lifetime.

Please consult your tax consultant on matters relating to RPGT.

11. Utility deposits

Make sure you make arrangements with purchaser to obtain refund of the remaining deposits i.e. water, electricity, telephone etc.

12. For Apartments

Make sure you make arrangements to obtain the refund of deposits which you have paid the developer. You would be required to provide the necessary original receipts to obtain the refund.

13. Notification of Change of Ownership of House/Apartment to Local Authority i.e. Majlis Perbandaran.

You or your lawyer must notify the Local Authority of any change in the ownership of any house/apartment so that its assessment record could be updated. It is an offence if you fail to notify the relevant authority.

14. Receipt of Balance Purchase Price

Generally, there would be a short time lapse between the payment of the balance purchase price by the purchaser to your lawyer and the date when you receive the balance purchase price from your lawyer depending on the completion of documentation. Please seek clarification from your lawyer.