HomePropertyLegal Fees

Property Legal Fees Malaysia 2026

Official fee scale per the Solicitors Remuneration Order 2023 (SRO 2023, effective 15 March 2023). Applies to SPA (Sale & Purchase Agreement), Loan Agreement, and MOT (Memorandum of Transfer) — each charged separately.

SRO 2023 Fee Scale

Applies to each legal document separately. Minimum RM500 per document. 8% SST added to professional fees.

Price TrancheRate (% of price)
First RM500,0001%
RM500,001 – RM1,000,0000.8%
RM1,000,001 – RM3,000,0000.7%
RM3,000,001 – RM5,000,0000.6%
RM5,000,001 – RM7,500,0000.5%

Above RM7.5 million: negotiable (not fixed by SRO). Minimum RM500 per document. 8% SST applies. Source: Federal Gazette PU(A) 61/2023.

Legal Fees at Common Price Points

Full legal cost for a typical transaction = SPA + Loan Agreement + MOT. Assuming 90% loan-to-value. Figures include 8% SST.

Property PriceSPA FeeLoan Fee (90% LTV)MOT FeeTotal
RM300,000 propertyRM3,240RM2,916RM3,240RM9,396
RM500,000 propertyRM5,400RM4,860RM5,400RM15,660
RM750,000 propertyRM7,560RM6,912RM7,560RM22,032
RM1,200,000 propertyRM11,232RM10,325RM11,232RM32,789
RM2,500,000 propertyRM21,060RM19,170RM21,060RM61,290

What Do Legal Fees Cover?

SPA (Buyer's Lawyer)

Drafts Sale & Purchase Agreement, reviews title search, handles earnest deposit, coordinates completion.

Loan Agreement

Drafts loan documents for bank, registers charge on title, coordinates disbursement with bank.

MOT (Transfer)

Presents Memorandum of Transfer at land office, registers ownership change. Often same firm as SPA.

💡 How to Reduce Legal Fees

  • Ask the bank about "zero-legal-fee" loan packages — some absorb loan lawyer fee
  • Use the same lawyer for SPA + MOT (often discounted as package)
  • Get quotes from 2-3 firms — discounts of 10-25% common for repeat clients
  • Developer "free legal" promos typically cover SPA only (not loan/MOT)

🏠 Total property purchase cost

Legal fees are just one piece. Include stamp duty, MOT, agent commission for total budget.

Frequently Asked Questions

What is the legal fee for buying property in Malaysia 2026?
Legal fees follow the Solicitors Remuneration Order 2023 (SRO 2023, effective 15 Mar 2023). Rates: 1% first RM500,000, 0.8% next RM500,000 (to RM1M), 0.7% next RM2M (to RM3M), 0.6% next RM2M (to RM5M), 0.5% next RM2.5M (to RM7.5M). Minimum RM500. 8% SST applies on professional fees. Same scale applies separately to SPA, Loan Agreement, and MOT — often 3 sets of legal fees per transaction.
How much is legal fee for RM500,000 property?
RM500,000 property legal fee per SPA: 1% × RM500,000 = RM5,000 + 8% SST = RM5,400. If 90% loan, loan agreement legal fee on RM450,000: 1% × RM450,000 = RM4,500 + SST = RM4,860. MOT (same scale): RM5,400. Total legal fees ~RM15,660 for citizen non-first-home buyer. First-home buyers under Budget 2026 get stamp duty exemption but still pay full legal fees.
Do I need separate lawyers for SPA and Loan Agreement?
In practice, many buyers use the same firm for both to save cost — SRO 2023 allows firms to offer 'package' discounts. However, SPA lawyer represents the buyer, while Loan Agreement lawyer is typically appointed by the bank (you pay but the bank chooses). Some banks offer to waive/subsidise the loan lawyer fee as a marketing incentive — ask during loan approval.
What is the difference between SRO 2023 and SRO 2005?
SRO 2023 (effective 15 Mar 2023, replacing SRO 2005) updated the fee scale to tier starting from RM500,000 (vs RM150,000 in 2005) and adjusted the rates. Net impact: lower fees for properties between RM500,000-RM1,000,000, similar for higher-value properties. SRO 2005 is no longer valid — always confirm your lawyer is quoting from SRO 2023.
Can I negotiate lawyer fees below SRO scale?
The SRO scale is a maximum fee guideline — lawyers CAN offer discounts, especially for repeat clients or larger transactions. Common discounts: 10-25% for established referral relationships (banks, agents). However, fees significantly below SRO may flag quality concerns. Always get quotes from 2-3 firms before engaging.

Data Source

Fee scale from the Solicitors Remuneration Order 2023 (PU(A) 61/2023), effective 15 March 2023. Replaces SRO 2005. Last reviewed: January 2026.

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