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(b) Simple formula - For any property worth RM500 000/- to RM1 m the following simple
formula may be used for computing the scale fee :
For example: For the sale of a double-storey terraced house worth RM600, 000/-, the scale fee
is:-
Legal fee
First RM500, 000/- x 1% = RM5,000/-
Next RM100, 000/- x 0.8% = RM800/-
Total: RM5,000/- + RM800/- = RM5,800/-
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2. Discounted legal fees for all developers’ transactions
Flat rate of RM300 fee for a developer’s low-medium-cost house RM50, 000/- and
below
The scale fee for any housing developer’s transaction is now always discounted, and it
is therefore lower compared to that of a non-developer’s transaction i.e. a sale and
purchase between individuals.
Consideration/adjudicated value :- FEE
RM 50, 000/- or below [flat rate] RM300/-
Scale Fees
discount
Less Statutory
RM50, 001/- - RM250, 000/- 25%
RM250,001/- - RM499, 999/- 30%
Above RM500, 000/- 35%
In a developer’ transaction of RM560 000/-, the fee after discount is RM2, 912/-
Normal scale fee = RM500 000/- x 1% = RM5,000/-
The next RM60,000/- x 0.8% = RM 480/-
RM5,480/-
Less 35% discount = 1,198/-
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non-contentious business governed by the Solicitors’ Remuneration Order unless he displays
inside the premises at which he carries on practice a signage in the form and substance
described in sub-rule (2) hereof.
(2) The signage shall contain words to the following effect in Bahasa Malaysia:
"Legal fees for property transactions such as sale & purchase, loan, banking facility and
other non-contentious business governed by the Solicitors’ Remuneration Order are
fixed by law and LAWYERS ARE NOT ALLOWED TO PROVIDE DISCOUNT."
TRANSLATION
[Yuran guaman bagi transaksi harta tanah seperti urusan jual-beli, pinjaman,
kemudahan bank dan urusan lain yang tidak melibatkan perbalahan yang dikawal oleh
Perintah Saraan Peguamcara adalah ditetapkan oleh undang-undang dan PEGUAM-
PEGUAM TIDAK DIBENARKAN MEMBERI DISKAUN.]
Solicitors’ Remuneration (Enforcement) Rules 2016 (came into effect on 22 Dec 2016)
Display of “no discount” signage
Rule 3 (1) An advocate and solicitor shall display at a conspicuous place inside the
premises at which he carries on practice, a no discount signage.
(2) The “no discount” signage shall contain words to the following effect in the
national language:
“There shall be no discount on scale or fixed fee for non-contentious business
governed by the Solicitors’ Remuneration Order 2005 [P.U. (A) 520/2005].”
(3) Any advocate and solicitor who contravenes subrule 3 (1) or (2) may be liable
to disciplinary proceedings.
Advocate and solicitor or any person may lodge a complaint concerning a breach of
the Solicitors Remuneration Order.
Para 6 Discount
SRO (1) A solicitor may give a discount of up to 25% on fees specified in the First
and Third Schedules, except for any transaction governed by the Housing
Development (Control and Licensing) Act 1966 [Act 118] or any subsidiary
legislation made under that Act.
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(2) No discount may be given on fees specified in the Second, Fourth, Fifth and
Sixth Schedules”.
Order 7 No acting for more than one party
(1) In any transaction referred to in the First, Second, Third and Fourth
Schedules, a solicitor shall not act for more than one party in a particular
transaction.
(2) Notwithstanding subparagraph (1), a solicitor may, where there is no conflict
of interest, prepare, file or witness the miscellaneous documents specified in the
Fifth Schedule for another party to the transaction.
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Rules Under The Second Schedule
1. A solicitor shall act only for one party - the lessor/landlord or the lessee/tenant and the
remuneration of the solicitor shall be in accordance with the applicable scale fee in this
Schedule.
2. Any consideration in the lease or tenancy agreement expressed to be payable other than
by way of rent (e.g. service charge, hire of furniture and fixtures) shall be deemed to be rent
for the purposes of this Schedule.
3. Where a varying rent is payable, the remuneration of the solicitor shall be based on the
highest amount of rent payable.
4. Where the consideration for a lease or tenancy agreement is expressed to be partly for a
money payment or premium and partly for a rent, the remuneration of the solicitor shall
be the aggregate of-
(a) the scale fees for a sale or purchase agreement based on the amount equal to the
money payment or premium as specified in the First Schedule; and
(b) the scale fees based on the rent as specified in this Schedule.
5. Where a solicitor represents the lessor or landlord in respect of leases or tenancies of ten
or more units in a building or part of a building in which a standard form of lease or tenancy
agreement is used, or where a lease or tenancy agreement is renewed upon substantially the
same terms and conditions, the remuneration of such solicitor in respect of each of such lease
or tenancy shall be 50% of the applicable scale fee in this Schedule, subject to a minimum
fee of RM600 for leases and RM300 for tenancies.
3. ISLAMIC BANKING
In respect of the preparation of security documents and/or agreements for business
as defined in the Islamic Banking Act 1983 [Now Islamic Financial Services
Act 2013]-
(a the scale fee specified for the principal instrument or document shall be based on
) the principal amount provided or financed by the financier (subject to a minimum
fee of RM300/-); and
(b the fee for each of the subsidiary or other instrument prepared in relation to the
) financing transaction (made according to the Syariah principles), to secure the
repayment of monies provided or financed, shall be 10% of the applicable scale
fee, subject to a minimum fee of RM200/- and a maximum fee of RM1,000/-
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for each subsidiary or other instrument. For eg. see Janab 2nd. Ed. p 747-8,
770
Facility RM90,000
Preparation. Of Bank’s Property Sale Agreement @ 1%= RM900/-
Deed of Assignment (Property w/o IDT) @10% of above scale fee = 200/-
Bank’s Property Purchase Agreement @ 10% of facility scale fee = 200/-
First title
RM300/-Each additional
RM50/-
title in the same instrument
Deed of Reassignment
First property RM300/-
Each additional property in
RM50/-
the same deed
(k) Entry of lien holder’s caveat RM400 for the first title and RM100 for each
subsequent title
(m) Transmission of deceased’s RM300 per application and RM100 per each
property, vesting order and change of subsequent title
name at the land office
(n) To certify a document Not exceeding RM25 for first certification and
not exceeding RM10 each subsequent
certification of the same document
(o) Application to the Economic Not less than RM750 per application but subject
Planning Unit of the Prime Minister’s to the provisions of rule of the Sixth Schedule
Department or similar regulatory
bodies
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Rules Under The Fifth Schedule
1. A solicitor is not entitled to witnessing or attestation fee-
(a) in a case where he has prepared, settled or approved the document concerned and he
is being remunerated according to this Order; or
(b) in a case where he acts for one party in a transaction and witnesses or attests the
signature of another party for whom he is not acting.
2. If the witnessing or attesting solicitor is asked to explain or advise on the contents of any
document not prepared by him, he shall be entitled to remuneration in accordance with rule
1 of the Sixth Schedule.
Stamp Duty Calculation [Please refer to item 32 First Schedule [Section 4] of Stamp Act
1949 (Act 378)]
First RM100,000 1%
Next RM400,000 2%
Thereafter 3%
For example:
Stamp duty for Charge documents [please refer to item 27 First Schedule [Section 4] of
Stamp Act 1949 (Act 378]
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In the case of the Purchaser is taking a loan and charged the property as security, it is
common practice now to treat the Loan or Facility Agreement as principal instrument
and the charge as subsidiary instrument.
In the aforesaid circumstances, the principal instrument will be charged with ad valorem
duty whereas the subsidiary instrument will be charged RM10 only.
The ad valorem duty for the principal instrument of a loan is calculated at RM5 for each
RM1,000 or part thereof. For example: if the loan is RM400,000, the stamp duty
payable is calculated as follows:-
RM5 x RM400,000 / RM1,000 = RM2,000/-
OTHER AMENDMENTS
Pursuant to the Solicitors Remuneration (Amendment) Order 2016, paragraph 3 of the
principal Order [The Solicitors’ Remuneration Order 2005] is amended in subparagraph
(k) by substituting for the word “RM50” the word “RM100”.
o “(k) miscellaneous expenses not exceeding RM50”
The Solicitors’ Remuneration (Amendment) Order 2017 (“SRAO”) has been gazetted
and will be in force from 15 March 2017.
The SRAO makes several important changes to the Solicitors’ Remuneration Order
2005 (“SRO”), which sets out the fees payable to lawyers in property transactions,
including —
sale and purchase transactions (subsale and developer transactions);
leases and tenancies; and
charges, debentures, and other security or financing documents.
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As an illustration, under the old SRO scale, the fees chargeable for the sale and
purchase transaction of a RM1.5 million property would be RM10,450.00, while the
fees under the new SRAO scale would be RM12,500.00.
Under the SRO, the fees chargeable for transactions governed by the Housing
Development (Control and Licensing) Act 1966 (essentially, the purchase of property
from developers) were at a lower rate of about 65-75% of the full scale fees, depending
on the purchase consideration. The SRAO maintains these percentages, but makes some
amendments to the purchase consideration thresholds.
Again, the reduced percentage for fees chargeable for transactions governed by the
Housing Development (Control and Licensing) Act 1966 under the SRO is maintained
by the SRAO, with some changes made to the purchase consideration and loan
thresholds.
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