How to Calculate Legal Fees & Stamp Duty when Buying a Property?

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 6% 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%	RM1,001 – RM9,000
Exceed 500k	3%	from RM9,000