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CONVEYANCING FEE SCHEDULE

L7- SOLICITORS’ REMUNERATION (AMENDMENT) ORDER 2017 (comes into


operation on 15 March 2017) & the Solicitors’ Remuneration Order 2005 [ P.U. (A)
520/2005]
-Non Contentious Matters :- Conveyancing

1. Individual Sale and Transfer


 Minimum fee of RM500-00.

5,000/- [subject to a minimum


First RM500, 000/- 1%
fee of RM500/-]
Next 500, 000 /- ( i.e. 500,001/ - 1m) 0.8% 4, 000/-
First 1, 000, 000/-   9,000/-
Next 2, 000, 000/-(1m – 3m) 0.7% 14, 000/-
First 3, 000, 000/-   23, 000 /-
  
Next 2, 000, 000/- (3m – 5m) 0.6% 12, 000/-
First 5, 000, 000/-   35, 000 /-
Next 2, 500, 000/- (5m – 7.5m) 0.5% 12, 500/-
First 7, 500, 000/- 47, 500 /-
Where the consideration or the negotiable on the excess
adjudicated value is in excess of (but shall not exceed 0.5% of
RM7,500,000/- such excess)
 
 For other low-medium-cost houses, the scale fee for the transfer of any property worth
RM500, 000/- and below is 1%.
For example, a dwelling house worth RM150 000/-, the legal fee payable is RM1, 500/-.
Legal fee = price x 1%
= RM150,000/- x 1%
= RM1,500/-

(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%

Example 1 [price up to RM250,000/- – less 25%]


In a developer’ transaction of RM100,000, the fee after discount is :-
Normal scale fee = RM100,000/- x 1% = RM1,000/-
Less 25% discount = RM250/- i.e. 75% of scale fee
RM1,000/- x 75%= RM750/-

Example 2 [price up to RM500,000/- – less 30%]


In a developer’ transaction of RM260 000/- the fee after discount is RM1, 820/ -
Normal scale fee = RM260, 000/- x 1% = RM2, 600/-
Less 30% discount 780/-
70% of scale fee = RM2, 600/- x 70% = RM1, 820/-

Example 3 [price above RM500 000 – less 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/-

65% of scale fee = RM5,480/- x 65% = RM3, 562/-

19.03. Display of "No Discount" signage


(1) After the coming into force of these Rules, no Advocate and Solicitor shall carry out any

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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.

Solicitors’ Remuneration (Amendment) Order 2017 (comes into operation on 15 March


2017)
 Amendment of paragraph 6 SRO 2005
 The Solicitors’ Remuneration Order 2005 [P.U. (A) 520/2005] which is referred to as the
“principal Order” in this Order, is amended by substituting for paragraph 6 the following
paragraph:

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.

3. SECOND SCHEDULE [Paragraph 2(b)] Lease and Tenancy


3.1 Tenancies
The new scale fees for tenancies may be summarised as follows:
Monthly rent % legal fees
For the 1st RM10 000/-
RM300/-
(i.e. RM1 – 10,000/-)
For the next RM90 000/- RM2, 500/-
25%
( i.e. RM10,001 – 100,000) (Subject to a minimum fee of RM300/-
For the 1st RM100 000/- 10% RM9, 000/-
Above RM100 000/- RM11, 500/-
negotiable on the excess
(up to 10% of such excess)
 The monthly rental of a tenancy for an ordinary building (i.e. a dwelling house,
shophouse, apartment, shoplot, etc.) is largely within the range of RM10 000 per month
as far as Johor Bahru is concerned. The legal fee payable therefore is usually 25% of the
monthly rent (i.e. ¼ of monthly rent).
Example, for a tenancy of RM2 000 per month, the scale fee is
RM2 000 x 25% = RM500.
3.2 LEASES
Monthly rent Scale of Fees
50%
For the first RM10,000/-
(subject to a minimum fee of RM600/-)
For the next RM90,000/-
20%
(i.e. RM10,001/- 100,000/-
Where the rent is in excess of Negotiable on the excess (but shall not
RM100,000/- exceed 20% of such excess)

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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.

Third Schedule [Paragraph 2(c)]


Charges, Debentures and other Security or Financing Documents
Amount secured or financed Scale of Fees (2017)
For the first RM500,000/- 1.0% (subject to a minimum fee of RM500/-)
For the next RM500,000/- 0.8%
For the next RM2,000,000/- 0.7%
For the next RM2,000,000/- 0.6%
For the next RM2,500,000/- 0.5%
Where the amount secured or financed is in Negotiable on the excess (but shall not exceed
excess of RM7,500,000/- 0.5% of such excess)
For the principal instrument Full scale fee
For each subsidiary instrument within the 10% of scale fee (subject to a minimum fee of
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meaning of subsection 4(3) of the Stamp Act RM300/- and a maximum fee of RM1,200/-)
1949 [Act 398]
 Notwithstanding the above rates, in the case of any transaction governed by the
Housing Development (Control and Licensing) Act 1966 or any subsidiary
legislation made under that Act, the remuneration of the solicitor having the conduct of
and completing the transaction, whether acting for the financier/chargee or the
borrower/chargor, shall be- subject to a statutory discount
  (a RM300/-, if the consideration as well as the loan sum is RM50,000/- or below;
)
  (b RM50,001 – RM250,000 = 75% of the applicable scale fee specified;
)
  (c) RM251,001/- - RM500,000/-= 70% of the applicable scale fee specified;
  (d 500,001/- and above = 65% of the applicable scale fee specified.
)

Rules Under The Third Schedule


1. A solicitor shall act only one party - for the financier/chargee or the borrower/chargor
and the remuneration of the solicitor shall be in accordance with the applicable scale fee
specified based on the secured or financed amount.
2. Where additional facilities are granted on the security of any existing charge or
debenture or other security document, which is being stamped additionally to cover
such facilities, the remuneration of the solicitor shall be in accordance with the
applicable scale fee specified based on the amount of the additional facilities.

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/-

FOURTH SCHEDULE [Paragraph 2(d)]


Discharge of Charge and Deed of Reassignment
 Discharge of Charge

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

 If the Deed of Reassignment includes a Revocation of Power of Attorney, an


additional fee of RM100/- shall be payable to the solicitor.

Rules Under The Fourth Schedule


1. The scale fees in this Schedule shall be payable only to the solicitor having the conduct of
and completing the transaction.
2. In a case where a Discharge of charge or a deed of reassignment is-
  (a prepared by the financier's/chargee's solicitor and the signature of the attorney for
) the financier/chargee is attested by the said solicitor, and the instrument is thereafter
forwarded to the borrower's/chargor's solicitor to complete the transaction, the
remuneration of the financier's/chargee's solicitor and of the borrower's/chargor's
solicitor shall each be 50% of the applicable scale fee in this Schedule; or
  (b prepared by the borrower's/chargor's solicitor and the instrument is forwarded to
) the financier's/chargee's solicitor for attestation of the signature of the attorney for the
financier/chargee only, the solicitor for the financier/chargee may only charge a fee
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for attestation as specified in the Fifth Schedule, and the remuneration of the
borrower's/chargor's solicitor shall be RM300/-.

FIFTH SCHEDULE [Paragraph 2(e)]


Preparing, filing or witnessing miscellaneous documents
(a) For witnessing execution of a RM50/- for first and RM10/- for each subsequent
document copy
(b) For witnessing execution of a RM100/- for first and RM10/- for each
document and giving an attestation subsequent copy
certificate
(c) Forms under sections 108-113 of the RM300/- per set
Companies Act 1965 [Act 125]
(d) Real Property Gains Tax Not less than:
(CKHT)/CKHT forms (per forms)
(optional work done by a solicitor at
the solicitor’s discretion)
(i) Form 1A RM400
(ii) Form 1A (each additional party) RM200
(iii) Form 2A RM300
(iv) Form 2A (each additional party) RM200
(v) Form 3 RM100
(vi) Form 3 (each additional party) RM100
(vii) Form 502- for each Vendor RM150
but subject to the provisions of rule 1 of the
Sixth Schedule.
(e) Income tax/ LHDN (optional work RM200
done by a solicitor at the solicitor’s
discretion)
Form CP 600
(f) Application to State consent to transfer/lease/charge
Authority/Statutory Body for
  (i) for properties where the RM200/- per application
consideration or the loan sum, as the
case may be, is RM45,000/- or below
  (ii) for properties where the RM300/- per application
consideration or the loan sum, as the
case may be, is in excess of
RM45,000/-
(g) Filing of any other form with an RM100/- per form
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appropriate authority
(h) Entry of private caveat pursuant to RM200/- for first title and RM50/- for each
an option to purchase, sale and subsequent title
purchase agreement or loan
transaction including the required
statutory declaration
(i) Withdrawal of caveat RM150/- for first title and RM50/- for each
subsequent title
(j) Entry of trust caveat including the RM500 for the first title and RM100 for each
required statutory declaration subsequent title

(k) Entry of lien holder’s caveat RM400 for the first title and RM100 for each
subsequent title

(l) Statutory declaration, e.g. not a RM100 per document


bankrupt, own occupation, error in
name and the like

(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

(p) Issuing new letters of undertaking RM100 per letter


by purchaser’s solicitors to financier’s
solicitors

*Amendments to Fifth Schedule.


Pursuant to Solicitors’ Remuneration
(Amendment) Order 2016 (came into
effect on 22 Dec 2016).

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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)]

Consideration or Adjudicated Value Scale of Fees

First RM100,000 1%

Next RM400,000 2%

Thereafter 3%

For example: 

If the property price is RM550,000, the calculation is:

First RM100,000 @ 1% RM1,000

Next RM400,000 @ 2% RM8,000

Next RM50,000 @ 3% RM1,500

Total stamp duty payable RM10,500

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/-

Consequences of a document not duly stamped


 A document which is not stamped or insufficiently stamped is not void or unenforceable
for that reason alone. However, such document may be rejected as evidence if it is
required to be produced before the Court. In that event, the party who wishes to produce
the unstamped or insufficiently stamped document will have to pay the stamp duty
payable and penalty before such document can be received as evidence.
 Notwithstanding the abovementioned proposition in law, the Legal Profession (Practice
and Etiquette) Rules 1978 has provided that it is unethical for a lawyer to object to such
documents from being produced unless the objection goes to the root of the subject
matter of the litigation.
Solicitors’ Remuneration Enforcement Committee 2010/2011 Interim Report
Update on the suits against the Malaysian Bar in relation to the Solicitors’ Remuneration
(Enforcement) Rules 2004 (“SRER”)
(a)    Suit by Abdul Razak bin Hashim vs Bar Malaysia (KL High Court Originating
Summons No: R2-17-5-06) 
 The SRER, made under s. 57(a) of the Legal Profession Act 1976 (“LPA”), was declared
null and void by the High Court on 26 Apr 2010.
 The Judge ruled that Bar Council’s power under section 57(a) of the LPA does not include
the power to make enforcement rules.  However, the Judge upheld the no-discount ruling
in the Solicitors’ Remuneration Order 2005 (“SRO”).  Therefore, any breach of the SRO
will amount to a misconduct for which disciplinary action may follow.
 It seems that the High Court, whilst acknowledging Bar Council’s power to make rules
pursuant to section 57(a), held the view that Bar Council may not make any rules to
enforce compliance.  The High Court decision was conveyed to Members of the Bar via
Circular No 151/2010 (dated 24 May 2010). Bar Council filed an appeal on 19 May 2010
and thus far, no hearing date has been set.
 In view of the court decision in item (a) above, SREC has ceased to issue notices to
Members to file returns pursuant to SRER and no action has been taken on any return
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received previously since then.
 Currently, SREC only handles complaints received from members of the public and
Members of the Bar on issues involving fees that are not in accordance with the scale
specified in SRO, ie overcharge, and discount, of fees and disbursements.  If there is
evidence of breach of SRO, SREC will request the Member to clarify the issue(s) raised by
the complainant.  In most instances of overcharging, the lawyer will refund the excess to
the complainant.  In cases where there is a violation of SRO, SREC will advise the
complainant to lodge a complaint with DB.  If there has been a serious breach and the
complainant decides not to lodge a complaint, SREC will itself lodge a complaint with DB,
in order to protect the interest of the public, and Members.

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.

Lawyers allowed to give discounts on certain property matters


 Paragraph 6 of the SRO expressly prohibited lawyers from giving discounts on the
stipulated scale fees, simply stating: “There shall be no discount on fees specified in this
Order.”.
The SRAO replaces the old paragraph 6 with the following:
Paragraph “6. Discount
6 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.
(2) No discount may be given on fees specified in the Second, Fourth, Fifth and
Sixth Schedules.”
The First Schedule specifies the fees for sales and transfers, while the Third
Schedule specifies the fees for charges, debentures, and other security or
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financing documents. The SRAO also increases the fees in these schedules, in a
move that is seen as long overdue.

Increase in fees for sales and transfers


The SRAO introduces a new scale for fees for sales and transfers by replacing the previous
First Schedule with the following:

First schedule (para 2(a))

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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.

Increase in fees for security or financing documents


The SRAO also introduces a new scale for fees for charges, debentures, and other security or
financing documents by replacing the previous Third Schedule with the following:

Third Schedule (para 2(c)

 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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