Solicitors Remuneration Order 2023 Malaysia — Legal Fees Guide
Complete reference for legal fees for property conveyancing in Malaysia under the Solicitors Remuneration Order 2023
The Solicitors Remuneration Order 2023 (SRO 2023) is a subsidiary legislation under the Legal Profession Act 1976 that prescribes the scale of professional fees that solicitors (lawyers) in Malaysia may charge for conveyancing and other property-related services. It replaced the earlier Solicitors Remuneration Order 2005. The SRO sets minimum fees — lawyers may not charge less than the prescribed scale, but may in practice agree to a reduced fee by mutual consent.
Scale of Fees — Property Purchase / Sale
The solicitor's professional fee for acting in a property purchase or sale is calculated on the transaction price or market value (whichever is higher) as follows:
| Transaction Price Band | Rate | Note |
|---|---|---|
| First RM 500,000 | 1.0% | (Min. RM 500) |
| Next RM 500,000 (up to RM 1M) | 0.8% | |
| Next RM 2,000,000 (up to RM 3M) | 0.7% | |
| Next RM 2,000,000 (up to RM 5M) | 0.6% | |
| Next RM 2,500,000 (up to RM 7.5M) | 0.5% | |
| Exceeding RM 7,500,000 | 0.4% |
* Minimum fee of RM 500 per transaction. Fees above are for the purchase/sale only; loan documentation and other matters are charged separately.
Worked Example — RM 700,000 Property
| Purchase price | RM 700,000 |
| On first RM 500,000 @ 1.0% | RM 5,000 |
| On next RM 200,000 @ 0.8% | RM 1,600 |
| Solicitor's Professional Fee (SPA) | RM 6,600 |
| Loan documentation fee (typically RM 500–1,500) | ~RM 1,000 |
| Disbursements (searches, adjudication, etc.) | ~RM 1,500 |
| Total Estimated Legal Costs | ~RM 9,100 |
The LexHub SNP Calculator automatically computes SRO 2023 legal fees alongside stamp duty and all related costs for any property price.
Calculate Full SNP Fees →Other Legal Services Under SRO 2023
Loan/Financing Documentation
The fee for preparing and registering a loan facility agreement (Memorandum of Charge or Deed of Assignment) is set at a separate scale: RM 500 for loan amounts up to RM 100,000, and approximately 0.5–1% on the first RM 500,000 of the loan amount, with a negotiated fee above that. Always confirm with your solicitor.
Sub-Sale / Resale (Secondary Market)
Where a property is sold with a separate vendor's solicitor and purchaser's solicitor, each solicitor's fee is calculated independently on the same scale. The vendor and purchaser each pay their own solicitor's fee.
Transfer Between Family Members
Transfers of love and affection (between spouses or parent/child) may attract a reduced fee agreed between the solicitor and client, subject to the minimum scale. These transactions often have favourable stamp duty treatment as well.
Tenancy Agreements
Tenancy agreement preparation fees are not regulated under the SRO but are typically charged at RM 300–1,000 depending on the monthly rent and term. Some landlords and tenants engage estate agents rather than solicitors for residential tenancies.
Common Disbursements (Out-of-Pocket Costs)
| Item | Estimated Cost |
|---|---|
| Land title search | RM 100–300 |
| Bankruptcy / winding-up / CTOS search | RM 30–100 |
| Adjudication fee (LHDN stamp duty adjudication) | RM 10 per instrument |
| Stamping / e-stamping | RM 10 per instrument |
| Registration at Land Office | RM 10–50 |
| Courier / miscellaneous | RM 50–200 |
Frequently Asked Questions
Can a solicitor charge less than the SRO scale?▼
Technically the SRO prescribes minimum fees, meaning solicitors cannot charge less than the prescribed scale as a matter of professional regulation. However, in practice, solicitors and clients may agree to a reduced fee by mutual consent, particularly for large or repeat transactions. Overcharging above the scale may also be challenged.
Who pays the solicitor's fees — buyer or seller?▼
For a property purchase, the buyer pays their own solicitor's fees (for preparing the SPA and loan documentation) and also pays the solicitor's fee for the vendor's SPA if the same firm acts for both. In practice, for new developer projects, the developer often pays the SPA legal fees. For sub-sale transactions, each party pays their own respective solicitor.
Are legal fees for property purchases tax deductible in Malaysia?▼
Legal fees paid in connection with a property purchase are not deductible against employment income. However, for rental or investment properties, legal fees incurred in preparing tenancy agreements may be claimed as a deductible expense against rental income under the Income Tax Act 1967.
What is the difference between SRO 2023 and SRO 2005?▼
The SRO 2023 introduced updated fee scales and clarified the scope of services covered. The core property conveyancing scale remains similar to the 2005 order but with minor adjustments. Solicitors practising conveyancing must follow the current 2023 order.
Do property agents charge a separate fee from legal fees?▼
Yes. Property agent commissions (typically 2–3% of the transaction price, paid by the vendor) are entirely separate from legal fees. Legal fees are paid to your solicitor (lawyer), while agent commissions are paid to the licensed real estate agent or negotiator.
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