Malaysia Real Estate

[august]

Hi All,

I have just received the quotation for Loan agreement & SAP agreement from the same lawyer. I really "terkejut" with the amount. It is so expensive!! This is my first time buying house, so really need advise from those with experience, especially Noor713.


Property details:
Condo with master title located at PJ - Completed property. Buying from owner.
Purchase price: RM280K
Loan amount: RM252K

Quotation for Loan agreement
Legal fee: RM3022.11
Stamping: RM1450
Registration at High count: RM100

Disbursement:
Land search: RM100
Statutory search: RM30
Q.A Search: RM30
Affirmation: RM20
Purchase of document: RM100

Others:
Miscellaneous –RM100
Transportation – RM150

Total amount: RM5102.11

Quotation for S&P Agreement
Legal fees: RM3150.70
Stamping: RM4680

Disbursement:
Land search: RM100
Q.A Search: RM30
Affirmation: RM50

Others:
Miscellaneous –RM150
Transportation – RM150

Total amount: RM8310.70

So,the total amount I need to pay for S&P agreement and Loan agreement are RM13,412.81. Please advise. Thanks a lot

[sonata]

the price should be about that.

i got a property for rm 170K++ recently and had to pay a total of rm 8K ++ for all/

[Noor713]

Hi august!

You quotations on fees & disbs for S&P and loan docs are basically correct except a couple of minor items which have been slightly overcharged such as:

Registration at High Court - it should be only RM45.00
Land search - it should be RM90.00
Miscellaneous - should be RM50.00 only.

Cheers!

[august]

Hi Noor173 & Sonata,

Thanks for your reply. I have called the lawyer & manage to reduce the Loan agreement to RM3800 & SAP agreement to RM6900. So, total need to pay = RM10,700.

[sonata]

at least u managed to reduce it


my one cannot even reduce...

[pocalypse]

[august]

talk to the lawyer directly instead of talk to their assistant. i think some lawyer can give discount on their legal fees. Before ask for discount, just do some research first, because some the lawyer may overcharge. If you know the "market rate", ask them to explain why overcharge.

[nj922]

[mainsna]

Hi,

I am a newbie in this forum.

FYI, I've been preparing legal firm's bill of costs since three years ago. I think I can shed some light into this matter since it was raised by one of the forummers.

Starting from 1st January, 2006, there is a slight increase on legal fees under the amended Solicitors' Remuneration Order 2005. As such, u cannot compare bills prepared by lawyers between last year and this year. Lawyers are entitled to charge legal fee as professional fee and the rest is disbursement to Inland Revenue, Land Office and etc.

For a property value RM280,000 under a sale and purchase, the new scale, for the legal fee is RM2,410. However, if there is a need for lawyer to prepare RPGT form on behalf of client, client will also be charged additional RM200 for buyer or RM300 for seller, where applicable.

Sorry if I may say that I cannot comprehend how the lawyer in August's case, can charge her legal fee amounting to RM3,150.70 which I find it a bit off the chart.

Under the loan documentation, the same scale apply but for each extra loan document there will be a charge of 10% from the scale or minium RM200.

One more thing, for every land search made at any selangor or kl land office is only RM30 only for every title, there is no RM100 la unless they are being made couple of times, which I believe the frequency necessary is only two for normal case.

Anyway, feel free to comment my reply.

Thank you.

Regards,

Mainsna

[Banzai]

[Noor713]

They can try to rip you off from disbursements (except stamp duties) but they cant on your legal fees.

Anyway, it also depends on your purchase price.

Cheers!

[Banzai]

[s3ng]

Master Noor713,
I need your help. can you shed some light on this?

i want to purchase a house. I wondering how much i need to paid my legal fees


Property details:
Double storey with individual title (i not sure) located at Puchong - Completed property. Buying from owner.
Purchase price: RM160K
Loan amount: RM144K

below...my own calculation (might be wrong)

*Valuation fees: i assume RM300
*Legal fees: RM1,300 (1% for first RM100,000/-, 5% for subsequent amount - am i rite?)
*Stamp Duty: RM800/- (0.5% of loan amount - am i rite?)
*Disbursement: arounnd RM1,000/- (Title & bankruptcy search, discharge, private caveat, etc.)

Total: 3400 (so i need to prepare around RM 3400 for my legal fees - Loan agreement ?)


Most of the times, S & P Agreement is borne by seller/buyer?
if bourne by buyer, that mean i need to prepare another RM 3400 for my legal fees rite?

so total will be RM 6800???
correct me if i wrong......

[Noor713]

Hi s3ng!

I need to know if there is an individual title available for this property. It makes quite a difference in fees & disbursements without a title.

Cheers!

[mainsna]

Dear s3ng,

Just to my 2 cents comment.

Your assumption on the legal fee scale is incorrect. Now, the first 150k is 1%, the next 850k is 0.7% and so on, therefore, your legal fee for a property value of 160k is RM1,070 not inclusive others ie. RPGT etc.

As for stamp duty relating to purchase, the scale is not the same like the loan stamp duty scale. The first 100k is 1% and so on. I assume your stamp duty for purchase is RM2,200.

As for disbursement, there is huge difference between whether there is title or no title?

Ok. i think that is enought for now.

Thank you.

Mainsna.

[Noor713]

Of course there is a difference in legal fees & disbursements with or without title.

With title, you need to lodge a private caveat - additional fees & disbursements!

For the loan, if there is an existing loan, need another Private Caveat to redeem the property.

Yes..it does make a difference, mate!

Cheers!

[Banzai]

[s3ng]

[mainsna]

The lodgment of private caveat in today's legal practise, I believe depend on circumstances of each case ,

For cash purchaser - yes, the purchaser's lawyer will lodge a private caveat to protect the purchaser

For property with outstanding loan on the part of the seller - yes, to enable for the release of the redemption sum (initial loan disbursement) to the seller's bank to complete the redemption process

The rest of the case, in theory the lawyer will recommend entering private caveat to protect buyer's interest, but practically, I think it is just a waste of money and the client end up paying higher legal fee..

Just my 2 cents opinion .

Regards,

Mainsna

[Noor713]

Extra fees & disbursements maybe, but I'd rather have my client's rights and interest protected. Thats what we're for, right??

Cheers!

[Noor713]

Hi mainsna!

One more thing - u mean u only lodge a private caveat for the purchaser if he is a CASH purchaser?? What about those who are taking loans? No caveats? Oh dear...... ..thats not a good procedure AT ALL.

Cheers!

[Noor713]

Hi s3ng!

You are the buyer, purchase price is RM160K, with individual title, subsale.

Legal fees:

S&P RM1,920.00
MOT 192.00
Entry of Private Caveat 250.00
Withdrawal of Caveat 200.00
CKHT 2 200.00
Service Tax: 5% 138.10

Stamp Duty on Transfer 2,200.00
Disbursements 1,000.00

Total : RM6,100.10

Cheers!

[s3ng]

thanks heaps!

noor713, u r a star!

[mercuri]

[s3ng]