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Think you are paying one legal fee for your purchase? Double-check. If you are taking a loan, the legal fee scale is applied more than once, and service tax and disbursements come on top. In this short video I explain why, and here is the breakdown in writing.
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Ask Jason on WhatsAppThe fee scale is fixed by law
Conveyancing fees in Malaysia follow a scale set by the Solicitors’ Remuneration Order 2023, in force since 15 July 2023:
- First RM500,000: 1.25% (minimum RM500)
- Next RM7,000,000: 1%
- Above RM7,500,000: negotiable, up to 1%
For purchases from a licensed housing developer, a discounted table applies. The previous scale (before July 2023) charged 1% on the first RM500,000, so older articles and calculators may show lower figures.
Where the scale is charged
- The sale and purchase agreement (SPA), based on the property price. For a normal sale, this fee also covers preparing the memorandum of transfer (MOT) that moves the title into your name.
- The loan agreement with your bank, based on the loan amount, even if the same firm acts for you on both.
- Service tax and disbursements on top. Service tax on legal services has been 8% since 1 March 2024, charged on both fees. Disbursements cover searches, filing, registration and similar out-of-pocket costs.
Worked example: RM500,000 property, 90% loan
| Item | Calculation | Amount |
|---|---|---|
| SPA legal fee | 1.25% × RM500,000 | RM6,250 |
| Loan legal fee (RM450,000 loan) | 1.25% × RM450,000 | RM5,625 |
| Service tax (8%) | 8% × (RM6,250 + RM5,625) | RM950 |
| Disbursements | Searches, filing, registration | Varies: ask for a quote |
| Total legal cost | about RM12,825 + disbursements |
Shop for competence, not price
Because the scale is set by law, quotes from different lawyers should be broadly similar, so hunting for the cheapest lawyer rarely saves you much. What does differ is how well your lawyer protects you: checking the title, spotting problems in the agreement and keeping the transaction on schedule. Pick your lawyer on competence.
Budget for all of it upfront
- Ask for a written quotation that separates each scale fee, the service tax and the disbursements.
- Check what the developer or bank covers. Some new launches and loan packages absorb part of the legal fees.
- Budget stamp duty separately. For foreign buyers it is a flat 8% of the price from 2026, far more than the legal fees. See my foreign buyer guide.
Want a personalised breakdown of your total legal costs? Send me the price and loan amount.
Sources
- Conventus Law: the Solicitors’ Remuneration Order 2023
- Teh & Yu: legal fees for a sale and purchase transaction
- Malay Mail: property legal fees increase under the new order (2023)
- Malaysian Bar: service tax increase to 8% from 1 March 2024
General information checked on 29 September 2026, not legal advice. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd.).