Last updated: September 2026
When buying or selling a property in Malaysia, one of the costs to consider is the legal fee for handling the sale and purchase transaction.
The amount is not determined arbitrarily by the law firm. For property transactions in Peninsular Malaysia, solicitors’ fees are generally calculated according to the scale prescribed under the Solicitors’ Remuneration Order 2023, which came into operation on 15 July 2023.
However, the legal fee is only one component of the total conveyancing cost. A purchaser or vendor may also need to pay stamp duty, registration fees, search fees, consent fees, taxes and other disbursements.
Table of Contents
How Are Sale and Purchase Legal Fees Calculated?
For a normal sale and purchase transaction, commonly referred to as a subsale transaction, the scale fee is calculated based on the purchase price or the adjudicated value of the property.
The applicable scale under the Solicitors’ Remuneration Order 2023 is:
| Purchase Price or Adjudicated Value | Scale Fee |
|---|---|
| First RM500,000 | 1.25%, subject to a minimum fee of RM500 |
| Next RM7,000,000 | 1% |
| Amount exceeding RM7,500,000 | Negotiable on the excess, but not exceeding 1% of the excess |
The lawyer has the discretion to determine whether the calculation should be based on the purchase consideration or the adjudicated value of the property.
Examples of Legal Fee Calculations
The following examples illustrate the scale fee before service tax or additional charges (see below).
Example 1: Property Price of RM300,000
RM300,000 × 1.25% = RM3,750
The applicable scale fee is RM3,750.
Example 2: Property Price of RM500,000
RM500,000 × 1.25% = RM6,250
The applicable scale fee is RM6,250.
Example 3: Property Price of RM800,000
For the first RM500,000:
RM500,000 × 1.25% = RM6,250
For the remaining RM300,000:
RM300,000 × 1% = RM3,000
Total scale fee:
RM6,250 + RM3,000 = RM9,250
Example 4: Property Price of RM1,000,000
For the first RM500,000:
RM500,000 × 1.25% = RM6,250
For the remaining RM500,000:
RM500,000 × 1% = RM5,000
Total scale fee:
RM6,250 + RM5,000 = RM11,250
Example 5: Property Price of RM2,000,000
For the first RM500,000:
RM500,000 × 1.25% = RM6,250
For the remaining RM1,500,000:
RM1,500,000 × 1% = RM15,000
Total scale fee:
RM6,250 + RM15,000 = RM21,250
These examples are for general illustration only. The actual quotation may vary depending on the nature and circumstances of the transaction.
Does the Sale and Purchase Legal Fee Include the Transfer?
For a normal sale and purchase transaction, the scale fee generally includes the normal and necessary legal work required to complete the transaction, including:
- preparing or reviewing the Sale and Purchase Agreement;
- advising on the terms and conditions of the transaction;
- conducting the necessary property, title and insolvency searches;
- corresponding with the parties, banks, developers and relevant authorities;
- preparing and attending to the execution of the transfer documents;
- preparing the Memorandum of Transfer, where an individual or strata title has been issued;
- preparing the Deed of Assignment, where no individual or strata title has been issued;
- arranging for stamping and registration of the transfer documents;
- handling the payment and release of the purchase price; and
- attending to the completion of the transaction.
The precise scope of work depends on the property, the title status and the terms of the appointment.
Is the Loan Agreement Legal Fee Included?
No. If the purchaser obtains a bank loan or financing facility, the legal work for the loan or financing documentation is treated as a separate transaction.
The financing legal fee is generally calculated based on the amount financed:
| Loan or Financing Amount | Scale Fee |
|---|---|
| First RM500,000 | 1.25%, subject to a minimum fee of RM500 |
| Next RM7,000,000 | 1% |
| Amount exceeding RM7,500,000 | Negotiable on the excess, but not exceeding 1% of the excess |
For example, if a purchaser buys a property for RM800,000 with a loan of RM720,000, the purchaser may have to pay:
- the sale and purchase legal fee based on the property price of RM800,000; and
- the financing legal fee based on the loan amount of RM720,000.
Although the same law firm may act for the purchaser and the purchaser’s financier where permitted, these remain separate transactions with separate fees.
What Other Costs Are Payable?
The legal fee should not be confused with the total cost of completing a property transaction. Depending on the transaction, the purchaser or vendor may also have to pay the following.
1. Service Tax
Service tax may be imposed on the law firm’s taxable professional fees and taxable charges at the prevailing rate, where applicable.
2. Stamp Duty on the Transfer
A purchaser will generally have to pay stamp duty on the instrument of transfer or assignment. This is separate from the lawyer’s professional fee.
The stamp duty is usually assessed based on the higher of:
- the purchase price; or
- the market value determined by the relevant authority.
Any applicable exemption or remission will depend on the law and government policy in force at the relevant time.
3. Stamp Duty on Loan Documents
Where the purchaser obtains financing, stamp duty may also be payable on the principal loan or financing instrument.
4. Registration Fees
Registration or presentation fees may be payable to the relevant Land Office or Land Registry. The amount may vary depending on the state, type of document and value of the property.
5. Searches and Administrative Expenses
These may include:
- land or title searches;
- bankruptcy or insolvency searches;
- company searches;
- winding up searches;
- private caveat searches;
- developer’s administrative charges;
- management corporation or joint management body charges;
- statutory declaration fees;
- courier and postage expenses;
- printing and photocopying expenses; and
- electronic filing or submission expenses.
6. Consent and Application Fees
Additional legal work and charges may arise if the transaction requires:
- State Authority consent;
- developer’s consent;
- consent to transfer;
- consent to charge;
- restriction-in-interest approval;
- foreign purchaser approval;
- bumiputera release;
- low-cost housing approval; or
- an application to a government department or land authority.
7. Real Property Gains Tax Compliance
The vendor and purchaser may need to submit the prescribed Real Property Gains Tax forms. The vendor may also be subject to retention of part of the purchase price and payment of Real Property Gains Tax, depending on the circumstances.
Legal fees for preparing and submitting the relevant Real Property Gains Tax forms are charged separately from the main sale and purchase scale fee.
8. Redemption and Discharge Expenses
If the property is still charged or assigned to the vendor’s bank, the existing loan must generally be redeemed before the property can be transferred free from the bank’s security.
The vendor may have to pay separate fees and expenses for:
- obtaining the redemption statement;
- preparing and registering a discharge of charge;
- preparing a deed of receipt and reassignment;
- revoking an existing power of attorney; and
- retrieving the original property documents.
Read more: Housing Loan Fully Settled in Malaysia: What Should You Do Next?
Does the Vendor Pay Legal Fees Too?
Yes, if the vendor appoints a lawyer to represent the vendor in the transaction. Learn more: Should a Vendor Appoint Their Own Lawyer When Selling a Property in Malaysia?
The vendor’s lawyer may be responsible for:
- advising the vendor on the terms of the Sale and Purchase Agreement;
- negotiating amendments to protect the vendor’s interests;
- attending to the redemption of the vendor’s existing loan;
- preparing the vendor’s Real Property Gains Tax documents;
- obtaining the necessary consent or approval;
- receiving and accounting for the purchase price;
- settling permitted outgoings or apportionments; and
- completing the transfer or assignment to the purchaser.
The purchaser’s lawyer acts for the purchaser and does not automatically represent the vendor. A vendor should consider appointing a separate lawyer, particularly where the transaction involves an existing loan, title restrictions, delayed completion, vacant possession issues, tenancy arrangements or other special conditions.
Is the Estate Agent’s Fee Included?
No. The estate agent’s commission is separate from the lawyer’s professional fee.
The estate agent is generally engaged to market the property, identify a purchaser and facilitate the commercial negotiation. The lawyer’s role is to advise on the legal terms, prepare or review the transaction documents and complete the transfer.
The vendor should check the estate agency agreement or appointment form to confirm the commission and any applicable taxes.
What Happens If the Transaction Is Cancelled?
If a transaction is terminated or does not proceed, the solicitor may still charge a fair and reasonable fee for the work already performed.
Under the Solicitors’ Remuneration Order 2023, the fee for an uncompleted transaction should generally not exceed 50% of the applicable scale fee, subject to the prescribed minimum fee.
However, if the solicitor has already fully or substantially performed the required work, the solicitor may be entitled to charge the full applicable scale fee.
The parties’ rights concerning the earnest deposit or other payments will depend on the terms of the offer, booking form and Sale and Purchase Agreement.
Why Can Two Quotations for the Same Property Be Different?
Even where the property price is the same, the final quotations may differ because of:
- whether service tax applies;
- whether the purchase involves financing;
- the number of purchasers or vendors;
- the number of titles or properties involved;
- whether State Authority or developer consent is required;
- whether the property is charged to a bank;
- whether a private caveat must be lodged;
- the property’s title status;
- additional documents or applications required;
- the estimated disbursements; and
- whether the quotation includes Real Property Gains Tax compliance work.
When comparing quotations, it is important to compare the complete breakdown rather than looking only at the headline legal fee.
Frequently Asked Questions
How much is the legal fee for buying a RM500,000 property?
For an ordinary subsale transaction, the scale fee is RM6,250 before any service tax, disbursements and additional work.
How much is the legal fee for buying a RM1 million property?
For an ordinary subsale transaction, the scale fee is RM11,250 before any service tax, disbursements and additional work.
Is stamp duty included in the legal fee?
No. Stamp duty is a government charge and is separate from the solicitor’s professional fee.
Do I pay legal fees for both the SPA and the loan?
Yes, if financing is involved. The sale and purchase work and the financing documentation are separate legal transactions.
Is the legal fee calculated using the purchase price or market value?
The applicable scale may be based on the purchase consideration or the adjudicated value of the property. Stamp duty is also generally assessed separately based on the applicable valuation rules.
Can the purchaser and vendor use the same lawyer?
A solicitor conducting the sale and purchase transaction should act only for one side, either the vendor or the purchaser. The purchaser’s solicitor does not automatically represent or protect the vendor’s interests. Read more: Should a Vendor Appoint Their Own Lawyer When Selling a Property in Malaysia?
Conclusion
For an ordinary sale and purchase transaction in Peninsular Malaysia, the legal fee is generally calculated according to the statutory scale under the Solicitors’ Remuneration Order 2023.
As a quick guide:
- the first RM500,000 is charged at 1.25%;
- the next RM7,000,000 is charged at 1%; and
- the fee on any amount exceeding RM7,500,000 is negotiable, subject to the prescribed limit.
The actual amount payable will also depend on whether the transaction involves bank financing, consent applications, loan redemption, Real Property Gains Tax compliance, additional documents and other disbursements.
Before signing an offer to purchase or paying an earnest deposit, both purchasers and vendors should obtain a quotation and seek legal advice on the proposed terms of the transaction.
This article is intended for general information only and does not constitute legal advice. The applicable fees, taxes, procedures and requirements may vary according to the circumstances of each transaction and the laws in force at the relevant time.
Explore our Conveyancing services or Sale and Purchase Agreement services.
Read more:
Private Caveat in Property Purchases in Malaysia: What Buyers Should Know
Buying or Selling a Tenanted / Rented Property: Here’s What You Need To Know
How Long Does a Subsale Property Transaction Take in Malaysia?
You’ve Settled Your Housing Loan. What Happens Next?
Offer to Purchase in Malaysia: What You Should Know Before Signing