The question above is a common question a legal firm receives from their clients.
Much have been said about the No-discount Rule of the Legal Fees for Sale & Purchase Agreements (SPA) and also Loan Agreements in Malaysia. Unlike Litigation Fees, Legal Fees for SPA and Loans are governed by Rules of the Bar Council, referred to as the Solicitors' Remuneration Order 2005 (SRO).
The intention of enforcing a fixed rule is to, inter alia, ensure:-
1. Customers know how much they have to pay and not be misled by lawyers;
2. That lawyers compete on quality of work as compared as to quantum of discount. The fact remains where large discounts are given, the quality of legal work for Conveyancing matters will deteriorate
Of course, there are arguments to the contrary, that lawyers are entitled to give discounts, particularly premised on supply & demand rules. Also, quarters who wish to vary the legal fees, contend that some Conveyancing transactions incur more working hours and the lawyer should be entitled to charge more.
However, as the Rules stand at the moment, potential property buyers/sellers out there should take note that legal fee is fixed. We append below the Fixed Scale Fee imposed by the Bar Council in the SRO, which this Firm is committed to adhere to. The Legal Fee depends on the value of the property, and the Fee will be calculated on a percentage of that value.
Value Legal Fee
First RM150,000 - 1%
Next RM850,000 - 0.7%
Next RM2,000,000 - 0.6%
Next RM2,000,000 - 0.5%
Next RM2,500,000 - 0.4%
Above RM7,500,000 - negotiable on the excess (but not exceeding 0.4% of that excess)
For more information of the SRO, please click the link below to the Malaysian Bar website:-
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