The short answer
In Peninsular Malaysia, legal fees for buying property follow the Solicitors' Remuneration Order 2023 (SRO 2023), in force since 15 July 2023.
| Value | Scale fee |
|---|---|
| First RM 500,000 | 1.25% (minimum RM 500) |
| Next RM 7,000,000 | 1% |
| Above RM 7,500,000 | Negotiable, but not more than 1% of the excess |
You usually pay this twice: once on the price for the SPA, and once on the loan amount for the loan agreement. Service tax at 8% and disbursements are added on top. On a generic RM 500,000 home with a RM 450,000 loan, the two scale fees are RM 6,250 and RM 5,625. Try the full cost in the calculator. Want me to work it out for your own case? WhatsApp +60 17-279 8932.
What the SRO is
The Solicitors' Remuneration Order is made under the Legal Profession Act and sets how much lawyers may charge for certain non-contentious work, including property transfers and loan documents. The 2023 Order was gazetted on 12 July 2023 and took effect on 15 July 2023. It applies to transactions in Peninsular Malaysia.
For property buyers, two parts matter:
- The First Schedule covers sale and transfer, which is the SPA and the transfer.
- The Third Schedule covers charges and other security or financing documents, which is the loan agreement.
Both use the same tiered scale in their Table A.
The two fees you usually pay
| Fee | Worked out on | Who appoints the lawyer |
|---|---|---|
| SPA and transfer | Purchase price | You, or for some new projects the developer's panel |
| Loan agreement | Loan amount | Usually the bank, from its panel |
If you pay cash with no loan, you only pay the SPA fee. If the same law firm acts for both, you still pay two fees, because they are two separate pieces of work.
Worked examples on generic prices
These use round figures and the standard Table A scale. They are not quotes.
SPA fee on the price
| Price | Scale fee | With 8% service tax |
|---|---|---|
| RM 300,000 | RM 3,750 | RM 4,050 |
| RM 500,000 | RM 6,250 | RM 6,750 |
| RM 800,000 | RM 9,250 | RM 9,990 |
How the RM 800,000 line is worked out: 1.25% × RM 500,000 = RM 6,250, plus 1% × RM 300,000 = RM 3,000. Total RM 9,250.
Loan fee on the loan amount
| Loan | Scale fee | With 8% service tax |
|---|---|---|
| RM 270,000 | RM 3,375 | RM 3,645 |
| RM 450,000 | RM 5,625 | RM 6,075 |
| RM 720,000 | RM 8,450 | RM 9,126 |
Both together for a RM 500,000 home with a 90% loan
| Item | Amount |
|---|---|
| SPA scale fee | RM 6,250 |
| Loan scale fee | RM 5,625 |
| Service tax at 8% on both | RM 950 |
| Total before disbursements | RM 12,825 |
Stamp duty is a separate cost paid to the government, not to the lawyer. The stamp duty guide covers it.
Buying from a developer
For a sale governed by the Housing Development (Control and Licensing) Act 1966, the Order has a separate table (Table B) that caps the fee at a lower level than Table A, depending on the price. The loan side has a similar table for financing linked to such purchases.
In practice:
- Many new projects come with a panel lawyer for the SPA.
- Some developers offer to pay the SPA legal fee as part of the sale. Read the SPA and booking form to see what is covered and on what terms.
- Ask the lawyer which table applies, so you know the fee before you sign.
Service tax and disbursements
Service tax. From 1 March 2024, service tax on professional services such as legal work is 8%. It applies to the lawyer's fee.
Disbursements. These are costs the lawyer pays on your behalf, billed separately:
- Land office or strata title searches.
- Registration and filing fees for the transfer and the charge.
- Copies, certification, courier and travel.
- Search on the seller, such as bankruptcy or company searches.
The amount depends on the work involved, so ask for an itemised estimate at the start.
Can the fee be lower?
The Order allows a lawyer to give a limited discount on the scale fee for sale and transfer and for financing documents, within a cap the Order sets. Some banks and developers also offer to pay or finance the fees. Read the conditions of any such offer, such as a lock-in on the loan.
Paying the fees
- When. Lawyers usually ask for part of the fee and disbursements when you sign, and the rest at completion.
- Receipts. Ask for a bill that shows the scale fee, service tax and each disbursement separately.
- Financing the fees. Some loans let you add legal fees and stamp duty to the loan. It eases cash now but adds to the interest you pay over the years.
Common mistakes
- Budgeting for one legal fee when there are two.
- Forgetting service tax and disbursements.
- Assuming the developer's "free legal fees" covers the loan too; often it covers only the SPA.
- Not asking which table applies to a developer purchase.
Check before you sign
This page explains the fee scale in general. It is not legal advice. Ask your lawyer for a written quote that shows the scale fee, the table used, service tax and disbursements, before you sign anything. For help with a specific property, WhatsApp Shyan Yee (REN 46305, IQI Realty) at +60 17-279 8932.
Frequently Asked Questions
How are lawyer fees for buying a house worked out in Malaysia?
In Peninsular Malaysia they follow the Solicitors' Remuneration Order 2023. For a sale and transfer, the scale is 1.25% on the first RM 500,000 of the price (minimum RM 500), then 1% on the next RM 7 million. Above RM 7.5 million the fee on the excess is negotiable but cannot exceed 1%.
Do I pay legal fees twice, for the SPA and the loan?
Usually yes. The SPA fee is worked out on the price, and the loan agreement fee on the loan amount, using the same scale. If you buy without a loan, there is no loan fee.
When did SRO 2023 start?
It was gazetted on 12 July 2023 and came into force on 15 July 2023, replacing the earlier scale.
Is service tax charged on legal fees?
Yes. Service tax on professional services, including legal services, is 8% from 1 March 2024. It is charged on the lawyer's professional fee.
What are disbursements?
Out-of-pocket costs the lawyer pays for you, such as land searches, filing, registration fees, copies and courier. They are separate from the scale fee, so ask for an estimate.
Are fees different when I buy from a developer?
Yes. For transactions governed by the Housing Development Act, the Order sets a separate table with lower caps than the standard scale. Ask the lawyer which table applies to your purchase.
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