Favourite Articles

  • Property sector slows down amid economic turmoil

    The uncertainties over the world economic prospects have started to take a toll on the local property market.Transactions have been slowing down in the past…

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  • Hot grabs outside Klang Valley

    Major property developers have been snapping up large plots of land worth well over a billion ringgit, even as the global economic scene turned more…

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  • Hike in RPGT a realistic percentage, says minister

    The 5% increase in the real property gains tax (RPGT) for properties held for two years or less is a realistic percentage, according to the…

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  • Asian property investors most conservative

    Asian property investors are least likely to take investment risks, according to the annual Global Investor Sentiment Survey conducted by Colliers International.The global commercial real…

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  • Property prices on Penang more resilient, says expert.

    A leading property expert said he does not expect property prices in Penang to see a major correction if there is a global downturn.

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  • Low-cost housing projects lift other property prices

    Middle and high-end properties are getting more expensive partly because developers are passing on the costs they have to bear in building low-cost houses.

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  • Malaysia Budget 2012: Property sector highlights

    Malaysia Prime Minister Datuk Seri Najib Razak in tabling Budget 2012 in the Dewan Rakyat on Friday Oct 7, 2011 announced several proposals related to…

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  • MRT to have big impact on property prices

    Property valuers and developers expect the Klang Valley Mass Rapid Transit (MRT) project to have significant impact on the prices of residential and commercial properties…

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  • Malaysian Construction growth up 7%

    The construction sector is expected to get more prominence in the Economic Report 2011/2012 with its growth targeted at 7% in 2012 from 3.4% in…

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  • Malaysian Economic Outlook 2012

    The government projects the economic growth to pick up in 2012, with gross domestic product (GDP) expanding between 5% and 6%. This is a more…

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  • Malaysia property market to be stable.

    The Real Estate & Housing Developers' Association Malaysia (Rehda) is confident the property market can be stable amid the gloomy global economic outlook. Its chairman…

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  • The Malaysian Budget 2012

    The RM230.833 billion Federal Government Budget 2012 proposals, unveiled on Friday, Oct 7, will focus on seven core areas including reducing the impact of inflation…

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Malaysian Stamp Duty & Legal Fees
Solicitors' fees and stamp duty Solicitors' fees and stamp duty payable are set out in Malaysian law and by the Malaysian Bar Association. Our guide below will show you the current rates of stamp duty and typical legal fees payable. The Solicitors' Remuneration Order controls exactly how much a local solicitor may charge for specific work on property transactions and other matters. Typically legal fees will rarely exceed $1,000 for an average sale and purchase transaction.
PROPERTY PURCHASE FEES
Malaysian Legal Fees for Sale and Purchase Agreement

Legal fees in Malaysia for drawing up the Sale and Purchase to completion of transfer depend on the property value as set out in the Sales and Purchase Agreement or the market value as determined by the Valuation Department.
Purchase from individual/public auction/developer etc
Value of Malaysian propertyLegal fees
1st RM100,0001% of property value (min RM200)
Next RM4.9million0.5% of property value
Thereafter 0.25% of property value
Purchase from Malaysian property developer with a standard S&P Agreement
Value of propertyLegal fees
Below RM30,000RM120
RM30,001 - RM100,0001% less 25%
1st RM100,0001% of property value
Next RM4.9 million0.5% of property value
Next RM5 million0.25% of property value
Next RM10millionNegotiable but not exceeding 0.25% of the excess amount of RM10 million
There is also a 5% service tax on legal fee and lawyers' disbursements.
Legal fees for Loan Documentation on Malaysian property
Purchase from individual/public auction/developer etc
Principal Instruments (Loan Agreements):
Loan sum Legal fees
1st RM100,0001% of loan sum (min RM200)
Next RM4.9million0.5% of loan sum
Thereafter0.25% of property value
For subsidiary Instruments (Collateral Documents):
Within section 4(3) of the Stamp Act 194910% of full scale for each principal instrument
Purchase from Malaysian property  developer with a standard S&P Agreement
Loan sum Legal fees
Below RM30,000RM120
RM30,001 - RM100,0001% of loan sum less 25%
All legal fees are subject to 5% service tax
Stamp Duty for S&P Agreement
Value of PropertyStamp Duty
1st RM100,000 subsequent 1%
RM 100,001 - RM 500,000 2%
RM 500,001 - RM 2million3%
Above RM 2million4%
Stamp Duty for Loan Agreement
Stamp duty for the Loan Document is RM2.50 for each RM500 or part thereof of the loan amount
Stamp Duty for transfer of house title
Property Value Stamp Duty
1st RM100,0001%
Next RM400,0002%
Next RM1.5 million 3%
Thereafter4%

 

Overseas buyers of property in Malaysia will also have to budget approximately RM1,000 (about £150.00) for FIC approval (plus RM200/£30.00 fees) and around RM1,000 (about £150.00) for state authority consent (plus RM200/£30.00 fees).

All in transaction costs for Malaysian property transactions should not exceed 5% of the property purchase price (below RM 2 million)

 
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