Basic concepts

Acting for multiple parties is prohibited

Order 7 SRO: 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
transaction.
Cannot act for both vendor and purchaser etc.
SST
Note that ALL PROFESSIONAL FEES ARE SUBJECT TO 6% SST.
Taxable reimbursements are SUBJECT TO SST e.g. miscellaneous, transport, printing etc.
Disbursements i.e. things paid to official authorities e.g land search, stamp duty, bankruptcy
search, affirmation of statutory declaration, entry of caveat are NOT SUBJECT TO SST.
How to draft bill
Need to have heading e.g. name of firm, address blabla. Need to have particulars e.g. addressed
to purchaser. Need to have proper your ref, our ref.
Can include details of the property. Can include the NO DISCOUNT proviso too.
Include “TOWARDS OUR PROFESSIONAL CHARGES for services rendered, taking
instructions in perusing, preparing and all attendance for execution, stamping and registration of
the aforesaid and all attendance not specifically stated herein and generally. “ before listing the
particulars of the bill.
Name it invoice proforma. Can state to be paid in how many days.
Sequence for particulars are professional fees, disbursements, reimbursements.
Late payment by client
Late payment is subject to 8% interest as per Order 5, SRO.
Professional Fees for Subsale Transfer (Form 14)
Refer to Solicitor’s Remuneration Amendment Order 2017, First Schedule
Consideration or Adjudicated Value 2017 scale of fees (RM)

(whichever is higher)

5,000/- [subject to a minimum fee of

First RM500, 000/- 1%
RM500/-]

Next 500, 000 /- ( i.e. 50,001/ - 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 adjudicated

negotiable on the excess
value is

(but shall not exceed 0.5% of such

in excess of RM7,500,000/-
excess)

The first RM 1 mil refers to total of first RM 500k + next RM 500k. So, its already confirmed
that the professional fees for the first RM 1 million will be RM 9k because (RM 500k x 1%) +
(RM 500k x 8%) = RM 9k. Same concept applies for first RM 3 mil, first RM 5 mil etc. Once
the property price exceeds RM 7.5 million, it is negotiable, but cannot exceed 0.5 of the excess
(refer example 4) .
Example of calculations:
Example 1
Purchase price: RM 850k
First RM 500k: RM 500k x 1% = RM 5k
Next RM 500k: RM 350k x 0.8% = RM 2.8k
Total fees: RM 5k + RM 2.8k = RM 7.8k
Example 2 (low/medium cost houses)
Purchase price: RM 150k.
First RM 500k in this case is the RM 150k.
Total fees: RM 150k x 1% = RM 1.5k
Example 3
Purchase price: RM 30k
Total fees: RM 30k x 1% = RM 300. This is below the minimum fee, so must charge RM 500
instead because RM 500 is the minimum fee.
Example 4
Purchase price RM 8. 5 million. Excess of 1 million.
Total fees for first RM 7.5 million is already RM 47.5k.
0.5% of 1 million = RM 5k. You can negotiate to charge professional fees capped at RM 5k.
Discount for Developer Sale Transfer (mandatory discount)
Refer to First Schedule (same as above).
Notwithstanding the above rates, in the case of any transaction governed by the Housing
Development (Control and Licensing) Act 1966 [Act 118] 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 vendor or the purchaser, shall be as follows:
(a) RM300.00, if the consideration is RM50,000.00 or below;
(b) 75% of the applicable scale fee specified, if the consideration is in excess of RM50,000.00
but not more than RM250,000.00;
(c) 70% of the applicable scale fee specified, if the consideration is in excess of RM250,000.00
but not more than RM500,000.00; or
(d) 65% of the applicable scale fee specified, if the consideration is in excess of RM500,000.00.
Example of calculations:
Example 1
Purchase price: RM 100k
Normal fees as per First Schedule: RM 100k x 1% = RM 1k
Apply the mandatory discount: RM 1k x 75% = RM 750
Example 2
Purchase price: RM 20k
Normal scale fees: RM 20k x 1% = RM 200. This is below the flat rate provided above, flat rate
is RM 300 for developer sale below RM 50k. So, total fees = RM 300.
Example 3
Purchase price: RM 450k
Normal scale fees: RM 450k x 1% = RM 4.5k
Apply mandatory discount: RM 4.5k x 70% = RM 3150
Example 4
Purchase price: RM 600k
Normal scale fees: (RM 500k x 1%) + (RM 100k x 0.8%) = RM 5k + RM 800 = RM 5.8k
Apply mandatory discount: RM 5.8k x RM 65% = RM 3770
Discount for Subsale Transfer
Bar Council Conveyancing Rules, Rule 19.03
(1) After the coming into force of these Rules, no Advocate and Solicitor shall carry out any 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]
Means that no discount can be given unless authorized by the SRO. Can insert this notice inside
the Bill as well, but not mandatory.
Order 6, SRO Amendment Order 2017
6. Discount
(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”.
Means that only SUBSALE can have discount of up to 25%, DEVELOPER SALE cannot. For
developer sale, please refer to the scale specified above which provides for its own scheme of
discounted fees. Its not mandatory for solicitor to give discount for subsale.
Tenancy
Refer to Chapter 7 for calculations. Tenancy is NOT SUBJECT TO DISCOUNT. For what is to
be in bill for tenancy, refer the final part of this chapter.

Professional Fees for Charges and Securities (Form 16)

Refer to Third Schedule, SRO Amendment Act 2017

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
excess of RM7,500,000/- exceed 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
meaning of subsection 4(3) of the Stamp of RM300/- and a maximum fee of
Act 1949 [Act 398] RM1,200/-)

Similar to calculations for transfer

Example 1

Loan amount: RM 765k

First RM 500k: RM 500k x 1% = RM 5k

Next RM 500k: RM 265k x 0.8% = RM 2120

Total fees: RM 5k + RM 2120 = RM 7120

Subsidiary documents such as charge annexure/charge documents to be added on i.e. if the total
professional fees is RM 7120, preparation of subsidiary documents is 10% e.g. RM 7120 x 10%
= RM 712 (subject to the minimum and maximum fee as stated above).

Hence total would be RM 7120 + RM 712 = RM 7832 for facility agreement of the charge and
its relevant charge documents (depending on how many subsidiary documents you have).

Rule 1, Third Schedule: 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.

Rule 2, Third Schedule: 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. Refers to when increase the loan
amount.

Discount for Charge

Refer to Third Schedule

Notwithstanding the above rates, in the case of any transaction governed by the Housing
Development (Control and Licensing) Act 1966 [Act 118] 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 as follows:
(a) RM300.00, if the consideration and the loan sum is RM50,000.00 or below;
(b) 75% of the applicable scale fee specified, if the consideration and the loan sum is in excess of
RM50,000.00 but not more than RM250,000.00;
(c) 70% of the applicable scale fee specified, if the consideration and the loan sum is in excess of
RM250,000.00 but not more than RM500,000.00; or
(d) 65% of the applicable scale fee specified, if the consideration and the loan sum is in excess of
RM500,000.00.”.
Same as transfer, no mandatory discount for subsale, but solicitor can give up to 25% as per
Order 6. For developer sale, the mandatory discount as above applies. Similar calculations to
discount for developer sale transfer.

Islamic Banking (he said this can set aside)

Rule 3, Third Schedule
In respect of the preparation of security documents and/or agreements for Islamic banking
business as defined in the Islamic Banking Act 1983-
(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 for each subsidiary or other instrument.
Professional Fees for Discharge of Charge (Form 16N)
Refer to Fourth Schedule SRO

Discharge of Charge

First title RM300/-

Each additional title in the same instrument RM50/-

Basically professional fees = just that RM 300 if prepared by chargor’s (purchaser/borrower’s)

solicitor.
Rule 2, Fourth Schedule

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 for
attestation as specified in the Fifth Schedule, and the remuneration of the
borrower's/chargor's solicitor shall be RM300/-.

Miscellaneous Items
Refer to Fifth Schedule, SRO

(a For witnessing execution of a document RM50/- for first and RM10/- for each
) subsequent copy

(b For witnessing execution of a document RM100/- for first and RM10/- for each
) and giving an attestation certificate subsequent copy

(c Forms under sections 108-113 of the RM300/- per set

) Companies Act 1965 [Act 125]

(d Real Property Gains Tax (CKHT)/CKHT Not less than:

) forms (per forms) (optional work done by a
solicitor at the solicitor’s discretion)
RM400
(i) Form 1A
RM200
(ii) Form 1A (each additional party)
RM300
(iii) Form 2A
RM200
(iv) Form 2A (each additional party)
RM100
(v) Form 3
RM100
(vi) Form 3 (each additional party)
RM150
(vii) Form 502- for each Vendor
 but subject to the provisions of rule 1 of the
Sixth Schedule.

(e Income tax/ LHDN (optional work done by

) a solicitor at the solicitor’s discretion)
Form CP 600
RM200

(f) Application to State Authority/Statutory consent to transfer/lease/charge

Body for

(i) for properties where the consideration RM200/- per application

or the loan sum, as the case may be, is
RM45,000/- or below

(ii) for properties where the consideration RM300/- per application

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

) appropriate authority

(h Entry of private caveat pursuant to an RM200/- for first title and RM50/- for each
) option to purchase, sale and purchase subsequent title
agreement or loan transaction including the
required statutory declaration

(i) Withdrawal of caveat RM150/- for first title and RM50/- for each
subsequent title
RM500 for the first title and RM100 for each
(j) Entry of trust caveat including the
subsequent title
required statutory declaration

RM400 for the first title and RM100 for each

(k) Entry of lien holder’s caveat
subsequent title

(l) Statutory declaration, e.g. not a

RM100 per document
bankrupt, own occupation, error in name
and the like
RM300 per application and RM100 per each
 (m) Transmission of deceased’s property, subsequent title
vesting order and change of name at the
land office
Not exceeding RM25 for first certification
and not exceeding RM10 each subsequent
(n) To certify a document certification of the same document

Not less than RM750 per application but

subject to the provisions of rule of the Sixth
(o) Application to the Economic Planning
Schedule
Unit of the Prime Minister’s Department or
similar regulatory bodies

(p) Issuing new letters of undertaking by RM100 per letter

purchaser’s solicitors to financier’s
solicitors

Apply witnessing execution of document if you are witnessing anything not prepared by you
(you are helping to witness something which you are not involved in e.g. P is in Melaka and you
are solicitor from Melaka, PS and VS are in KL. In such a case you can charge witnessing fee).
Cannot charge for witnessing documents prepared by you are if you are involved as per Rule 1,
Fifth Schedule.
Add on application to SA if purchaser is foreigner.
Filing of form with an appropriate authority refers to Borang I as this is filed at relevant local
council (this likely only occur at the end of everything)
CKHT depends on what is applicable. If you are vendor its likely CKHT 1 and 3. CKHT 3 if you
applying for exemption. If you are purchaser its likely CKHT 2A.
Statutory declaration is used for not bankrupt and own occupation. This is because 90%
financing limit can only be given if you are buying the house for own occupation, if you are
buying for investment purposes financing limit is 75%.
Can add on letter of undertaking based on how many letters you have.
Searches
Alright idk where to find the amount for this, so I just do according to Janab.
Title search: RM 30
Bankruptcy search: RM 10 – 30
Items needed for Transfer Bill with Title (purchaser)
Professional fees: fees for transfer (first schedule), entry and removal of caveat (fifth schedule),
letter of undertaking x 1 because only one undertaking from PS as according to procedure in
chapter 2 and 5 (fifth schedule), filing of form in other authorities i.e. Borang I (fifth schedule),
statutory declaration (fifth schedule), CKHT. 6% SST. Witnessing etc if applicable. SA consent
if needed.
Disbursements: stamp duty, land search, bankruptcy search, registration of caveat (leave blank),
registration of MOT (leave blank), SA consent fee if applicable (leave blank). Stamp duty on SD.
Reimbursements: miscellaneous, up to you. 6% SST.
Mention on discount.
Items needed for Charge Bill with Title (purchaser)
Professional fees: facility agreement for the charge, subsidiary documents like annexure, form 16
etc (third schedule), statutory declaration (fifth schedule), caveat (fifth schedule) 6% SST.
Witnessing etc if applicable. SA consent if applicable.
Disbursements: stamp duty, registration fee for charge and caveat (leave blank), SA consent fee
if applicable (leave blank). Land search and bankruptcy search (although charged for this in
transfer bill, this is considered a new transaction). Stamp duty on SD.
**No application of consent because its is not leasehold land, if leasehold need consent. No letter
of undertaking because only one undertaking is given by PS as per the procedure in chapter 2
and 5.
Reimbursements: miscellaneous. 6% SST.
Mention on discount.
Items needed for Discharge Bill with Title (purchaser)
Professional fees: discharge (fourth schedule). 6% SST.
Disbursements: stamp duty (RM 10), registration of discharge (leave blank). Land search etc up
to you.
Reimbursements: Miscellaneous. 6% SST.

Items needed for Tenancy Bill

Professional fees: Tenancy fees. Witnessing etc if applicable. 6% SST.
Disbursements: stamp duty is the main one. WHS said some solicitors may charge for land
search etc. Not mandatory
Reimbursements: Miscellaneous. 6% SST.
Professional Fees for Transfer and Loan without Title (not really covered, less important I
guess)
Documents involved are DOA and notice to developer. S. 22D provides that the notice to
developer = RM 50. Disbursements and everything else remains the same.
Rule 2, Sixth Schedule: In a case where a solicitor has had the conduct of a transaction and no
individual document of title or strata title had been issued when the transaction was first
completed-
(a) a fair and reasonable remuneration for the solicitor drawing up and completing the
subsequent instrument of transfer or charge shall be a fee not exceeding 25% of the applicable
scale fee specified in the First Schedule or the Third Schedule, as the case may be, subject to a
minimum fee of RM200; and
(b) if the said instrument of transfer or charge involves more than one individual document of
title or strata title, a fair and reasonable additional remuneration for the solicitor shall be RM50
for each additional title involved.
Rule 3, Sixth Schedule: In a case where a solicitor has conduct of a transaction after the issuance
of the individual document of title or strata title, but he did not have conduct of the transaction
when it was completed before the issuance of the individual document of title or strata title-
(a) a fair and reasonable remuneration for the solicitor drawing up and completing the
subsequent instrument of transfer or charge shall be a fee not exceeding 50% of the applicable
scale fee specified in the First Schedule or the Third Schedule, as the case may be, subject to a
minimum fee of RM200; and
(b) if the said instrument of transfer or charge involves more than one individual document of
title or strata title, the solicitor shall be entitled to an additional remuneration of RM50 for each
additional title involved.
For loan transaction, it is similar to sale with title; but documents involved will be LACA, PA.
The LACA is the subsidiary document, so fees = 10% of professional fees. Similar calculation as
above. Need registration fee for PA also (leave blank, differs from state to state).
Professional Fees for Deed of Reassignment

Deed of Reassignment

First property RM300/-

Each additional property in the same deed RM50/-

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

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

Rule 2, Fourth Schedule

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 for
attestation as specified in the Fifth Schedule, and the remuneration of the borrower's/chargor's
solicitor shall be RM300/-.
Same as discharge, but extra revocation of PA.
Items needed for Transfer Bill without Title
Professional fees: Fees for DOA and notice to developer, caveat, CKHT 6% SST, statutory
declaration
Disbursements and reimbursements same. Stamp duty of SD.
Items needed for Loan Bill without Title
Professional fees: Fees for facility agreement, LACA, caveat. 6% SST, statutory declaration
Disbursements: same but replace registration of charge with registration of PA. Stamp duty
payable on LACA and loan agreement. Stamp duty on PA and SD.
Items needed for Deed of Reassignment Bill
Professional fees: fees for deed, revocation of PA.
Disbursements and reimbursements same.
Stamp Duty for Transfer/DOA
Refer to Item 32, First Schedule, S. 4 of Stamp Act.

Example 1
Purchase price: RM 850k
First RM 100k: RM 100k x 1% = RM 1k
Next RM 400k: RM 400k x 2% = RM 8k
Next RM 500k: RM 350K x 3% = RM 10.5k
Total stamp duty: RM 1k + RM 8k + RM 10.5k = RM 19.5k
Stamp Duty for Charge/Loan instruments
Item 27 (a) (iii), First Schedule of Stamp Act 1949
Stamp duty for loan instruments is RM 5 for every RM 1k
Example 1
Loan amount: RM 765k
RM 765k divided by RM 1k = RM 765
RM 765 x 5 = RM 3825
Total stamp duty: RM 3825
Stamp duty for discharge/DRR
Refer to Item 65, First Schedule of Stamp Act 1949, stamp duty for discharge of charge = RM 10
Stamp Duty Exemptions
Refer Chapter 1, Part 2 for details.
Document not stamped
Even if document x stamped, Rule 58 of LPPER provides that it is contrary to etiquette to object
to the admissibility of any document on the ground that it is not or not sufficiently stamped,
unless such objection goes to the root of the subject matter or the suit.
For provisions on evasion of stamp duty, refer to duty to be honest, Part 1, Chapter 1.
S. 63 (1) (a) Stamp Act provides that any person who executes/signs any instrument that is not
duly stamped with the intention to evade payment of stamp duty is liable to be fined RM 1.5k.
Stamp duty for POA
Item 59: POA = RM 10
Item 67: Revocation of POA = RM 10
Stamp Duty for SD
Item 2: RM 10
Breach of SRO
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.
For provisions on misconduct, please refer to chapter 1 part 1.
Abdul Rahim Rajudin v Law Society of Singapore [1991] 1 MLJ 257
Overcharging = grossly improper conduct.