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How to Calculate Legal Fees & Stamp Duty when Buying a Property?

7th February, 2011

in Property

Everyone would like to buy a property, either for own stay or for an investment. However, do you know that on top of the property price, you have to pay a substantial amount of money for legal or lawyer fees and stamp duty?

Legal fees is payable to the appointed lawyer who will prepare Sale & Purchase Agreement between purchaser and vendor. On other hand, Stamp Duty which also known as Memorandum Of Transfer (MOT) is payable to the government & collected by Lawyer on behalf of the government.

Below is the details on how to calculate Legal Fees & Stamp Duty or else you may use online Legal Fees & Stamp Duty calculator.

1. Legal or Lawyer Fees.

Purchase Price (RM) Fees (% from purchase price) Legal Fees
First 150k 1% (minimum RM300) RM300 – RM1,500
Next 850k 0.70% RM1,501 – RM7,450
Next 2M 0.60% RM7,451 – RM19,450
Next 2M 0.50% RM19451 – RM29450
Next 2.5M 0.40% RM29,451 – RM39,450
Exceed 7.5M Negotiable (maximum 0.40%) from RM39,450

On top of that, there are 5% government tax and approximately between RM500 to RM1,000 disbursement cost.

Disbursement cost covers the following,

  • Stamping of SPA (RM10 per copy x 4)
  • Bankruptcy/ Winding up search
  • Company search (if applicable)
  • Land search (before preparation of the SPA & prior to the filing of the Form 14A at the Land Office)
  • Registration of Transfer at Land Office
  • Affirmation on the Statutory Declaration to request for the 50% waiver on the stamp duty on the transfer/ on the assignment.
  • Stamping on the Statutory Declaration to request for the 50% waiver on the stamp duty on the transfer/ on the assignment
  • Transportation
  • Printing/ Facsimile/ Telephone/ Photocopy charges
  • Miscellaneous charges

2. Stamp Duty or Memorandum Of Transfer (MOT)

Purchase Price (RM) Fees (% from purchase price) Stamp Duty
First 100k 1% RM0 – RM1,000
Next 400k 2% RM1,001 – RM9,000
Exceed 500k 3% from RM9,000


Alternatively, you may use online Legal Fees & Stamp Duty calculator to calculate automatically.

{ 15 comments… read them below or add one }

SM February 7, 2011 at 8:14 pm

how about common/general fee charged for Personal Loan?

Reply

Juan December 7, 2011 at 10:34 am

Hi,

May i know can i doit myself the MOT instead of paying the runner(lawyer) to just transfer the tittle? Thanks

//Juan

Reply

ryder February 4, 2013 at 1:40 pm

Can i know if it is calculated based on purchased price or current market value?

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1-million-dollar-blog February 4, 2013 at 2:41 pm

based on purchase price :)

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has February 7, 2013 at 3:37 pm

Can you recommend lawyer firm which take fee same as your MOT calculator? I bought an auction house for Rm130000.

Reply

Zara March 9, 2013 at 8:48 am

Could you assist with guidelines for buying auction property cash….. Am just wondering whether anyone could actually settle the transfer title process without hiring a lawyer ??

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1-million-dollar-blog March 10, 2013 at 3:57 pm

If you are buying a house either cash or loan, the procedure is similar except that you don’t to request for loan. For auction property, you have to prepare sufficient money in form of bank draft for the bidding.

I’m not sure if we are allow to do title transfer without hiring a lawyer, but if it is allowed, I still prefer lawyer to do that to avoid a lot of hassle & they know what to do it properly.

Reply

sharmila June 24, 2013 at 3:41 pm

ur calculator really helped me..i heard if first home buyer will get less 50% stamp duty is that is true? thank you

Reply

Kevin July 22, 2013 at 4:59 pm

HI,

Thank for the informative info. I have something I hope can enlighten me on…

I’ve bought a house for RM450K (loan RM405K, tenure for 30 years)

Based on your online calculator, I’m should be paying RM4,416 in legal fee and RM8K in stamp duty, so grand total is RM12,416

My lawyer quoted me RM20,500 which is a difference RM8,084. May I know what is the amount to be used for? Is there something called loan agreement fee?

Many thanks in advance!

Reply

1-million-dollar-blog July 22, 2013 at 10:33 pm

Hi, yes there is stamp duty for loan agreement which I did not include. It suppose to be 0.5% of loan value.

Reply

Janice October 23, 2013 at 2:32 pm

Hi There, I have a similar question as Kevin..My property is 385k. based on your calculator I need to pay RM12,366.20, therefore I would need to top up the stamp duty for loan agreement which is (Loan value: RM346500) =RM 1732.50 . So for the Grand TOTAL lawyer fee for both SPA & Loan agreement will be RM 12366.20+RM1732.50=RM 14098.70 roughly?? Correctly me if Im wrong?

Reply

1-million-dollar-blog October 23, 2013 at 3:42 pm

The calculator already include stamp duty on loan. Keep in mind this figure is just a guide, the actual figure may change depending on the local law requirement and necessary additional charges by the lawyer.

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rin January 6, 2014 at 1:35 pm

Hi, can this fees pay in staggered or need to pay lum sum to lawyer?

Reply

1-million-dollar-blog January 8, 2014 at 7:25 am

Normally you have to pay the full amount but but if you have a good relationship with the lawyer, you may negotiate to pay base on progress.

Reply

Kelly April 8, 2014 at 11:44 am

I bought a house recently and i saw the quotation of the lawyer fees. There is professional fee for SnP and another professional fee for loan agreement. If I use your calculator, it only include the SnP fee. Is this common to have both fees?

Reply

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