Legal Fees and Stamp Duty Calculation Method

Legal Fee Stamp Duty
Legal Fees:
(Fees payable to the lawyer you appointed who will prepare Sale & Purchase Agreement (SPA) between purchaser and vendor)

Purchase Price (MYR)Fees (% from purchase price)Legal Fees
First MYR 150,0001.00 % (minimum MYR 300)MYR 300 – MYR 1,500
Next MYR 850,0000.70 %MYR 1,501 – MYR 7,450
Next MYR 2,000,0000.60 %MYR 7,451 – MYR 19,450
Next MYR 2,000,0000.50 %MYR 19,451 – MYR 29,450
Next MYR 2,500,0000.40 %MYR 29,451 – MYR 39,450
Exceed MYR 7,500,000Negotiable (Maximum 0.40 %)From MYR 39,450

For example
If the property price is MYR 550,000, the calculation is:
Total Legal FeeMYR 4,300
First MYR 150,000 (1.00 %)MYR 1,500
Next MYR 400,000 (0.70 %)MYR 2,800

If the property price is MYR 10,500,000, the rate above MYR 7,500,000 is negotiable between the law firm and the client. If say the negotiated rate is 0.2%, the calculation is:
Total Legal FeeMYR 45,450
First MYR 150,000 (1.00 %)MYR 1,500
Next MYR 850,000 (0.70 %)MYR 5,950
Next MYR 2,000,000 (0.60 %)MYR 12,000
Next MYR 2,000,000 (0.50 %)MYR 10,000
Next MYR 2,500,000 (0.40 %)MYR 10,000
Next MYR 3,000,000 (0.20 % Negotiated Rate)MYR 6,000

Stamp Duty:
(Charges which also known as Memorandum Of Transfer (MOT) is payable to the government)
Purchase Price (MYR)Fees (% from purchase price)Stamp Duty
First MYR 100,0001.00 %MYR 0 - MYR 1,000
Next MYR 400,0002.00 %MYR 1,001 - MYR 9,000
Exceed MYR 500,0003.00%From MYR 9,001

For example
If the property price is MYR 550,000, the calculation is:
Total Stamp DutyMYR 10,500
First MYR 100,000 (1.00 %)MYR 1,000
Next MYR 400,000 (2.00 %)MYR 8,000
Next MYR 50,000 (3.00 %)MYR 1,500

On top of that, there are 6% government tax (GST).
Also charges for disbursement cost, which covers the following:

  • Stamping of SPA
  • Bankruptcy/ Winding up search
  • Company search (if applicable)
  • Land search
  • Registration of Transfer at Land Office
  • Affirmation on the Statutory Declaration
  • Stamping on the Statutory Declaration
  • Transportation
  • Printing/ Facsimile/ Telephone/ Photocopy charges
  • Miscellaneous charges

Online Legal Fees, Stamp Duty & Home Loan Calculator
Stamp duty Calculator

Malaysia’s Budget 2017: A quick take on Loan and Stamp Duty

  • Stamp duty exemption doubled to 100% on instruments of transfer and housing loan instruments to help reduce the cost of first home ownership. Exemption limited to houses valued up to RM300,000 for the period of 1st January 2017 to 31 December 2018.
  • The rate of stamp duty on instruments of transfer of real estate worth more than RM1 million up from 3% to 4% effective 1st January 2018.

Comments are closed.