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Legal Fees & Stamp Duty when Buying a Property

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Legal Fees & Stamp Duty when Buying a Property

Postby Odyssey » Sun Jun 23, 2013 12:43 pm

Source: 1-million-dollar-blog.com dated 7th February, 2011

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 :

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%............................RM1,00 - RM9,000
Exceed 500k......................................3%............................from RM9,000
Odyssey
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Re: Legal Fees & Stamp Duty when Buying a Property

Postby pahangboy » Sun Jun 23, 2013 4:52 pm

Another good info...thumb up...

Probably would be great if all can be consolidated in one thread?
pahangboy
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Re: Legal Fees & Stamp Duty when Buying a Property

Postby Odyssey » Sun Jun 23, 2013 8:54 pm

What do u mean Bro? Dont understand leh. Pse elaborate what u hv in mind, anything to make this forum better :D
Odyssey
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