Legal Fee For Your Immovable Property Transaction Has Changed

The Solicitors’ Remuneration Order 2005 governs the legal fees of a lawyer in respect of non-contentious matter and at the 70th Annual General Meeting of the Malaysian Bar on 19 Mar 2016, Members of the Bar adopted a resolution to amend Order 6 (no discount rule), the First Schedule (Sale and Transfer) and the Third Schedule (Security or Loan) of the Solicitors’ Remuneration Order 2005 .

The Solicitors’ Remuneration (Amendment) Order 2017 (“SRAO 2017”) has been approved by Solicitors Costs Committee on 20 January 2017 pursuant to section 113 of the Legal Profession Act 1976. The said amendments was gazetted on 2 Mar 2017 as P.U.(A) 67/2017 and shall take effect on 15 Mar 2017.

The Changes

The SRAO 2017 increases the rate of the scale of fees in respect of Sale and Transfer of immovable property and Security or Loan.

Besides, the SRAO 2017 has amended Order 6 (previously the no discount order) to enable lawyer to grant a Discount of up to 25%, only on the fees for Sale and Transfer of immovable property and Security or Loan.

The Amended Scale Fees

The amendments are as follow:

New First Schedule SRO

Illustration: Property price: RM 1, 500,000.00

Old scale fees:

(RM 150, 000 x 1%) + (RM 850, 000 x 0.7%) + (RM 500, 000 x 0.6%) = RM10,450.00

New scale fees:

(RM 500, 000 x 1%) + (RM 500, 000 x 0.8%) + (RM 500, 000 x 0.7%) = RM12,500.00

 

New Third Schedule SRO

Sales and Purchase Through Developer

The transactions of purchasing property from developers are governed by the Housing Development (Control and Licensing) Act 1966.

The reduced percentage for fees chargeable under the SRO is maintained with some changes made to the purchase consideration and loan thresholds. No discount order remains for this transaction.

Download: SRAO 2017

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