Effective July 15, property legal fees in Malaysia will see an increase following the gazetting of the Solicitors’ Remuneration Order 2023 (SRO 2023), which will come into effect the same day.
The SRO 2023 specifically impacts non-contentious transactions involving the sale and purchase of movable and immovable properties, financing, and tenancies.
This order governs the legal fees charged by lawyers in Malaysia for Sale and Purchase Agreements and financing agreements related to immovable properties, such as land and buildings.
Replacing the previous Solicitors Remuneration Order 2005, which underwent revisions in 2016 and 2017, the SRO 2023 has been approved by the Solicitors Costs Committee (SCC) chaired by the Chief Judge of Malaya under Section 113 of the Legal Profession Act, 1976.
According to lawyer Datuk Roger Tan, who represented the Malaysian Bar in the SCC, properties valued at RM500,000 and below will now incur a conveyancing fee of 1.25%, previously being 1%. For properties valued between RM500,000 and RM7.5 million, the rate is now 1%.
As reported by The Star, these conveyancing fees will translate to RM2,500 for properties valued at RM200,000, RM6,250 for RM500,000, RM12,250 for RM1.1 million, RM16,250 for RM1.5 million, and RM76,250 for RM7.5 million. Previously, the fees ranged between RM2,000 and RM48,000.
