Legal fees for a property purchase and loan in Malaysia
Figures checked against official sources on
Legal fees for a property sale and purchase, and separately for the loan documents, follow the Solicitors’ Remuneration Order 2023: 1.25% of the first RM500,000 (minimum RM500) and 1% of the next RM7 million. For a RM500,000 property that is RM6,250 on the SPA, and a RM450,000 loan adds RM5,625, before 8% service tax and disbursements. Purchases from a developer pay a lower percentage of that scale.[1],[2]
The scale fee (Table A)
| Price, or amount financed | Scale fee |
|---|---|
| First RM500,000 | 1.25% (minimum RM500) |
| Next RM7,000,000 | 1% |
| Above RM7,500,000 | Negotiable, but not more than 1% of the excess |
The Order is P.U. (A) 207/2023, in force from 15 July 2023; it replaced the 2005 Order. For the sale and transfer the fee is worked out on the price or adjudicated value; for a loan, on the amount secured or financed. Each additional security document for the same loan is charged at 10% of the full scale fee, at least RM500 and at most RM2,000.[1]
Buying from a developer (Table B)
For a purchase governed by the Housing Development (Control and Licensing) Act 1966 — typically a purchase from a housing developer — the fee is a share of the Table A fee, whichever side the lawyer acts for. The loan documents for such a purchase follow the same steps.[1]
| Price | Fee |
|---|---|
| RM50,000 or less | RM500 |
| Over RM50,000 to RM250,000 | 75% of the Table A fee (minimum RM500) |
| Over RM250,000 to RM500,000 | 70% of the Table A fee |
| Over RM500,000 to RM1,000,000 | 65% of the Table A fee |
| Over RM1,000,000 | 50% of the Table A fee |
Source[1]
Worked examples
- SPA and transfer, 1.25% of RM500,000
- RM6,250
- Loan documents, 1.25% of RM450,000
- RM5,625
- Service tax at 8%
- RM950
- Legal fees, before disbursements
- RM12,825
| Price | Sub-sale (Table A) | From a developer (Table B) |
|---|---|---|
| RM300,000 | RM3,750 | RM2,625 |
| RM500,000 | RM6,250 | RM4,375 |
| RM800,000 | RM9,250 | RM6,012.50 |
| RM1,200,000 | RM13,250 | RM6,625 |
| RM2,000,000 | RM21,250 | RM10,625 |
Discounts, service tax and what is not included
- A lawyer may give a discount of up to 25% on a Table A fee — on RM500,000, no lower than RM4,687.50. No discount is allowed on a Table B (developer) fee.
- Legal services are a taxable service, and they have been taxed at 8% since 1 March 2024. The July 2025 revision of the rate order kept 8% as the rate for all services except a listed few at 6%, and legal services are not among them.
- The scale fee does not include stamp duty, registration fees, search fees, valuer’s fees, travel, or other disbursements, which the lawyer must itemise in the bill.
The Order is made under the Legal Profession Act 1976. For property in Sabah or Sarawak, ask your lawyer which fee rules apply; this guide does not cover them.[1]
Frequently asked questions
How much are lawyer fees for buying a RM500,000 house in Malaysia?
RM6,250 for the sale and purchase (1.25% of RM500,000) when buying from an owner, or RM4,375 when buying from a developer (70% of that). Add 8% service tax and disbursements. The loan documents are charged separately on the loan amount.[1],[3]
Can a lawyer give a discount on legal fees for an SPA?
Yes, up to 25% on the Table A scale fee for a sub-sale and its loan. No discount is allowed on the Table B fees for a purchase from a developer.[1]
Is the loan agreement legal fee the same scale as the SPA?
Yes. The Third Schedule uses the same 1.25% / 1% bands, applied to the amount financed rather than the price.[1]
Do legal fees include stamp duty?
No. Stamp duty, registration fees, searches and other disbursements are charged on top of the scale fee.[1]
Sources
- Bar Council Circular No 185/2023, with the gazetted Solicitors’ Remuneration Order 2023 [P.U. (A) 207/2023] — Malaysian Bar, checked
- Service Tax (Rate of Tax) (Amendment) Order 2024 [P.U. (A) 64/2024]: 8% from 1 March 2024, except food and beverage, telecommunication, parking and logistics services — Attorney General’s Chambers, Laws of Malaysia, checked
- Service Tax (Rate of Tax) (Amendment) Order 2025 [P.U. (A) 173/2025], in force 1 July 2025 — Attorney General’s Chambers, Laws of Malaysia, checked
- Bar Council Circular No 211/2018: service tax on legal services (quoting the Service Tax Regulations 2018) — Malaysian Bar, checked