Sale & Purchase of Property – how much is your legal cost?

Part 2


1.1 Legal cost for the Sale & Purchase Agreement (the cost is on the Purchaser)

Part A – Professional Fee (based on the Purchase Price)
o For the first RM150,000 x 1.0% (subject to a minimum fee of RM300
o For the next RM850,000 x 0.7%
o For the next RM2,000,000 x 0.6%
+ 5% government tax

Part B – Disbursement (estimation cost:- RM500 – RM1,000)
o Stamping of SPA (RM10 per copy x 4)
o Bankruptcy/ Winding up search
o Company search (if applicable)
o Land search (before preparation of the SPA & prior to the filing of the Form 14A at the
Land Office)
o Registration of Transfer at Land Office
o Affirmation on the Statutory Declaration to request for the 50% waiver on the stamp duty
on the transfer/ on the assignment
o Stamping on the Statutory Declaration to request for the 50% waiver on the stamp duty
on the transfer/ on the assignment
o Transportation
o Printing/ Facsimile/ Telephone/ Photocopy charges
o Miscellaneous charges

Part C - Stamp duty on transfer of property/ on the Assignment (based on the market value)
The 1st RM100,000 x 1%
+ The 2nd RM100,000 x 2%
+ The balance of the market value x 3%
= Total Stamp Duty of Transfer/ on the Assignment

1.2 Legal cost for the Loan Agreement (not applicable if the purchaser pay the purchase price by way of cash and without obtaining any loan from any institutions)


Part A – Professional Fee (based on the total loan amount)
o For the first RM150,000 x 1.0% (subject to a minimum fee of RM300
o For the next RM850,000 x 0.7%
o For the next RM2,000,000 x 0.6%
+ 5% government tax

Part B – Disbursement (estimation cost:- RM500 – RM800)
o Bankruptcy/ Winding up search
o Company search (if applicable)
o Registration of Charge at Land Office
o Affirmation on the Statutory Declaration of non-bankruptcy
o Stamping on the Statutory Declaration of non-bankruptcy
o Transportation
o Printing/ Facsimile/ Telephone/ Photocopy charges
o Miscellaneous charges

Part C - Stamping of the Loan Agreement
o total loan amount x 0.5%

* To minimize your cost, you may apply for the “zero entry cost” loan whereby the bank will bear this cost. This package is available from various major banks in Malaysia. However, please take note that the interest rates imposed by the bank for this “zero entry cost” package may be higher than the normal housing loan facility.


2.1 Vendor's Legal cost for the Sale & Purchase Agreement (not applicable if the Vendor decides not to appoint any Solicitors for the Sale & Purchase Agreement)

Part A – Professional Fee (based on the Purchase Price)
o For the first RM150,000 x 1.0% (subject to a minimum fee of RM300
o For the next RM850,000 x 0.7%
o For the next RM2,000,000 x 0.6%
+ 5% government tax

Part B – Disbursement (estimation cost:- RM150 – RM350)
o Transportation
o Printing/ Facsimile/ Telephone/ Photocopy charges
o Miscellaneous charges

2.2 Vendor's Legal cost for the discharge of charge (not applicable if the property is free from any bank loans/ has already been fully redeemed from the bank)

Part A (Professional Fee) + Part B (Disbursement): the estimation cost is between RM500 – RM800

2.3 Vendor's Legal cost for application of the consent from State Authority (subject to the restriction under the title. If no consent is required, then this is not applicable)

Part A (Professional Fee) + Part B (Disbursement): the estimation cost is between RM500 – RM800 (subject to the charges imposed by the respective Land Office


I hope the above information would be helpful to you. Cheers!

-Rose-