Author: Jason Lim

Also in: 中文 · Bahasa Melayu · Bahasa Indonesia

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.

The 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

1. 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.
2. The loan agreement with your bank, based on the loan amount, even if the same firm acts for you on both.
3. 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 who pays which fee. Your SPA and loan offer state which legal fees you pay.
• 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.

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Want a personalised breakdown of your total legal costs? Send me the price and loan amount.

Sources

• 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.).

Also in: 中文 · Bahasa Melayu · Bahasa Indonesia

When you buy a new launch, the developer must fix defects that appear during the defect liability period. Buy a subsale home instead, and none of that applies to you. What you see on inspection day is what you are buying. In this short video I explain why, and how to protect yourself.

“As is, where is”

Subsale property is sold as is, where is. There is no defect liability period, and no developer is obliged to fix anything after you move in. The seller has no duty to repair defects unless your agreement says so.

Caveat emptor: buyer beware

The seller is not required to point out problems. Your job is to find them before you sign, not after. Courts have generally upheld this: if you did not inspect properly, that is on you, not the seller. The main exception is fraud, where the seller actively lies about or hides a defect. An honest gap in your inspection is not enough.

What can pass to you with the keys

• Hidden defects: leaking pipes, roof or window seepage, termites, faulty wiring, cracks behind cabinets.
• Unpaid bills: maintenance and sinking fund arrears, quit rent, assessment tax and utilities, unless the agreement makes the seller settle them.
• Title problems: caveats, charges or restrictions on the title that delay or block the transfer.
• Tenants: an existing tenancy that does not end when you expected to move in.
• Unapproved renovations: changes the local council never approved.

Protect yourself before the Offer to Purchase

Your leverage exists before you sign the Offer to Purchase and pay the earnest deposit, not after.

1. Get a proper inspection. View in daylight, and after rain if you can. Run every tap, flush every toilet, switch on every light and air-conditioner. For older landed homes, consider a professional inspector, especially for termites and roofing.
2. List every fixture you expect to get: air-conditioners, water heaters, kitchen cabinets, lights, curtains. If it is not written down, don’t assume it stays.
3. Put repair requests in writing. Problems raised verbally mean nothing later. Anything the seller agrees to fix must go into the Offer to Purchase and the sale and purchase agreement.
4. Check the paperwork. Ask the management office for outstanding maintenance charges; your lawyer will search the title and apply for any state consent needed (for leasehold land and foreign buyers).

Subsale can still be a great deal

You can see exactly what you are buying, move in within months, often pay less per square foot, and check real rental demand in the building. But the protection a new launch gives you automatically, you have to build in yourself, up front.

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Looking at a subsale unit in JB? Message me for a pre-purchase inspection checklist, and I will tell you what to ask the seller and what should go into the agreement.

Sources

• iProperty: the defect liability period and subsale homes

General information checked on 29 September 2026, not legal advice. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd.).

Also in: 中文 · Bahasa Melayu · Bahasa Indonesia

Many people think property investment is simple: buy, rent it out, collect the rent every month, and sell for a profit five or ten years later. But the rent you collect is not your profit. In Malaysia there are taxes, local council charges, maintenance, utility bills and, eventually, tax when you sell. In the video I break down the six most important ones. Here they are in writing.

1. Rental income tax

Some investors think, “I don’t work in Malaysia, I’m just collecting rent, so Malaysian income tax isn’t my concern.” That is not necessarily true. Rent from a Malaysian property can be taxable in Malaysia. Non-resident individuals are generally taxed at a flat 30% on Malaysian-sourced income, including rent, and cannot claim personal reliefs.

The good news: you are taxed on the net, not the gross. Expenses incurred to earn the rent can generally be deducted, such as assessment tax, quit rent, fire insurance, loan interest, rent-collection commissions and ordinary repairs. Initial renovations and improvements are treated differently. Keep every invoice and receipt, and speak to a tax professional about your own position.

2. RPGT when you sell

If your plan is to buy today and sell when prices go up, Real Property Gains Tax matters. Buy at RM1 million, sell at RM1.3 million, and it looks like RM300,000 profit. But the taxable gain is worked out after allowable acquisition and disposal costs, and the rate depends on how long you held the property and who you are:

Sold within	Malaysian citizen / PR	Foreigner (non-citizen, non-PR)
Years 1–3	30%	30%
Year 4	20%	30%
Year 5	15%	30%
Year 6 onwards	0%	10%

Add the agent’s fee and legal fees on the sale, and every ringgit of appreciation does not end up in your pocket. Understand this before you buy, not when you are ready to sell.

3. Assessment tax (cukai taksiran)

Charged by the local council where the property sits. In Johor Bahru, which council bills you depends on the exact location. It looks small next to the price, so investors forget it, but you pay it every year whether or not you have a tenant.

4. Quit rent (cukai tanah) or parcel rent

Different from assessment tax: quit rent is a land charge paid to the state. For strata property you may see it as parcel rent (cukai petak). Again not huge on its own, but it adds up with everything else.

5. Utility bills

“But Jason, my tenant pays the utilities.” Usually, yes. But when a tenant moves out and you need a few weeks to clean, repair and find the next one, the electricity and water are on you. Know which accounts are in your name, what deposits are needed, and for some serviced apartment or commercial-title units, check the tariff before you buy. It is not always the same as a residential condo.

6. Maintenance fee and sinking fund

For condominiums and serviced residences, this is usually the biggest ongoing cost. Maintenance pays for security, cleaning, lifts, pool, gym, landscaping, common-area electricity and management. On top of that, owners contribute to a sinking fund for major long-term works such as lift replacement or repainting the building.

Plus: vacancy and repairs

Not a tax or a fixed fee, but every investor needs a buffer. Air-conditioners break, water heaters need replacing, tenants leave and the unit sits empty for a month or two. If your numbers only work with 12 months of occupancy and zero repairs, they are too optimistic.

Example: what does RM3,000 a month really give you?

RM3,000 a month is RM36,000 a year gross. Here is an illustration with example figures. Your actual numbers depend on the building, so always ask for them:

Item (example figures)	Per year
Gross rent (RM3,000 × 12)	RM36,000
Maintenance + sinking fund (RM500/month)	– RM6,000
Assessment tax + quit/parcel rent	– RM950
Insurance	– RM300
Repairs and upkeep	– RM1,500
One month vacancy	– RM3,000
Agent fee to find a tenant (spread per year)	– RM1,500
Before loan interest and income tax	about RM22,750

Suddenly RM36,000 does not look like RM36,000 anymore. Don’t only ask “how much can I rent this for?” Ask “how much do I actually keep?” A good investment isn’t necessarily the one with the highest rent. It is the one where the numbers still make sense after every cost is included.

Costs at the point of purchase are a separate topic: see legal fees when buying property and my guide to foreign buyer rules and stamp duty.

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Want the real numbers for a unit you are looking at? Send me the project. I will work out the maintenance, taxes and a realistic net return with you.

Sources

• LHDN: RPGT rates
• PropertyGuru: rental income tax in Malaysia (deductible expenses, non-resident rate)

General information checked on 29 September 2026, not tax or financial advice. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd.).