February 7, 2011

How to Calculate Legal Fees & Stamp Duty when Buying a 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.

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