Thank you very very much for helping me clarify my doubts....

You are most welcome.

I was told that the legal fees for SPA and LA is free (borne by developer). But then since the project is still under construction, so by the time it's completed and ready for title transfer, it could be 3 years later. At this point, I know we need to pay MOT already but do we need to pay for legal fees again? And some agent even said we need to pay legal fees but capped at 25% if used back same lawyer as per SPA. Any comment?

Yes. You need to pay the solicitors to prepare the Memorandum of Transfer form (Form 14A) during the perfection of transfer.

The legal fees is capped at 25% of your total legal fees payable (based on your purchase price) which is excluding the disbursements etc.

Thanks, but where is this cap being mentioned? I tried to dig it but couldn't find it.. must it be the same lawyer then only can enjoy the 25% cap?

Search for the provision under the schedules attached to the Solicitors Remuneration Order (SRO).

Yes, you need to go back to the same firm of solicitors who attended to your Sale and Purchase Agreement to be entitled to this rate. If you elect another firm of solicitors then the legal fees will be at 50%.

Thanks Bro. Found it under Schedule 6 (paragraph 2f) of SRO ady.

Hi sifus here, as my dad is buying a new property, I wish to clarify some legal costs. Property details are as below:-


http://www.propwall.my/classifieds/1441435...tab=classifieds



The negotiated sub-sale price is 1.1 million, loan amount is say 980k. Property type is leasehold and strata, currently rented out.

Since it is a major purchase, I wish to ask about the legal fees involved. Appreciate if any lawyer sifu here can advise:-


1. How much is the legal fees for SPA & Stamp Duty? Payable when?
2. How much is the MOT stamp duty fees? Payable when?
3. Any other SPA related charges or stamp duty not mentioned above?
4. How much is the legal fees for Loan Agreement & stamp duty? Payable when?
5. Any other Loan Agreement charges not mentioned above?


Basically, I am trying to work out the total purchase cost (in addition to the 10% down payment) and to help my dad plan his cashflow (as we are selling some smaller props to raise money for this major purchase, hence cash flow timing is important). We are an average family where every cent counts, hope you can help me.

Thanks a lot!

1. How much is the legal fees for SPA & Stamp Duty? Payable when?
- the legal fees ONLY costs RM8,050.00, please take note that this is excluding caveat forms and disbursements.
- stamp duty for the Sale and Purchase Agreement is only RM10.00 per copy.

2. How much is the MOT stamp duty fees? Payable when?
- stamp duty itself will costs RM27,000.00

3. Any other SPA related charges or stamp duty not mentioned above?
- depending on the firms, disbursement charges varies but shouldn't be more than RM1,000.00 with GST.

4. How much is the legal fees for Loan Agreement & stamp duty? Payable when?
- legal fees ONLY costs RM7,310.00 (vary depending on the type of loan and documents involved)
- stamp duty itself will costs RM4,900.00
- usually payable upon execution of the loan agreements but can be dragged until before your loan solicitors send their advise for the disbursement of the loan
-you may want to take note of the differential sum payable too.

5. Any other Loan Agreement charges not mentioned above?
- you need to verify this with the solicitors because every firm is different in respect of their billings.

Basically, I am trying to work out the total purchase cost (in addition to the 10% down payment) and to help my dad plan his cashflow (as we are selling some smaller props to raise money for this major purchase, hence cash flow timing is important). We are an average family where every cent counts, hope you can help me.

- my word of advise, if your dad can only afford to buy a new property by selling off other properties and by selling these properties, the timing must be right then your dad is not in the position to invest in a new property with such high value especially when you mentioned "every cent counts" in your family

- if at all there is any delay in between these transactions (which will definitely occur), your dad could easily be stuck in between with nothing but unsubstantiated financial obligations.

- "flipping properties" aren't meant for people with commitment.

This post has been edited by shaniandras2787: Jun 7 2016, 06:18 PM

I have a scenario for first time house buyer.

Siti is first time house buyer.
Ali is not first time house buyer.

Siti wanted to buy a house of less than 500K
Siti name will appear in SPA, without Ali
Siti and Ali joined name to apply bank loan

Bank say MOT should get 50% discount
Solicitor say MOT should get 40% because loan is under 2 names

Which side is correct? 40% or 50% discount?

Yes, the bank is correct in advising that the stamp duty payable by Siti on the Memorandum of Transfer is entitled to 50% waiver.

For the stamp duty payable on the principal loan agreement however, it will only be 25% of the total stamp duty payable since only Siti's half share will be entitled for the waiver and not Ali's.

I do not know where the lawyer got the equation of 40%.

allow me to borrow and continue the thread for stamp duty discount please.

my scenario is, house under 500K:
1. SPA - 2 names (both 1st time buyer)
2. Loan - 1 name

can you help me to understand during MOT, lawyer need to help apply from stamp office both name to get 50% discount in 25% sharing each?
and for Loan doc stamp duty, do i entitle 25% or 50%?

Are you purchasing a property directly from the developer or through a sub-sale transaction?

arrh... sorry i miss that info, it's direct from developer, lawyer also developer lawyer.

if that's the case then your solicitors who will be attending to your perfection later on will need to submit the stamp duty remission during the adjudication of the Memorandum of Transfer.

to simplify things, the full stamp duty payable for the Memorandum of Transfer and the principal Facilities Agreement will be halved.

MOT not so soon as project still under con.

but for loan doc stamp, lawyer already issue the invoice and i don't see the 50% discount. when i ask, they said need to pay full first then wait for stamping office rebate only can get back, and since only 1 name under loan for a 2 name spa, only entitle for 25% discount.

True. The individual document of title will be issued simultaneously at the time you take vacant possession of the Property. This is in line with the new Strata Management Act.

It's not strange that your solicitor is asking you to pay in full because they are afraid to request the additional sum from you in the event the remission is not granted because every client is superbly sensitive when requested additional payments from them so i understand why your solicitor is do that.

However, I don't think so the reason given by your solicitor is the accurate one. The stamp duty remission statutory declaration (application) is submitted simultaneously with the adjudication of the principal Facilities Agreement which means, during payment, the solicitor will already know how much is due and payable. There is no need to pay the full stamp duty to the stamping authority and then request for the rebate and wait for their reversion.

If what you are conferring here about the percentage is true then your solicitor is wrong in the calculation.

The stamp duty payable on the Memorandum of Transfer and Facilities Agreement is separate and the remission is enforceable in personam. If there is only 1 borrower and that borrower is entitled to apply for the remission then it will be 50% and not 25%. It will only be 25% if there are 2 borrowers and only one person is entitled to apply for the remission.

Either way, if you don't feel comfortable with paying them up front then tell your solicitor that you will settle the stamp duty payable only upon the the assessment notice has been extracted. Ask them to show you the stamp duty payable printed on the assessment notice first before you pay them.

you sir are very well verse, may i know what's your profession?

i wish i can convey those message to the solicitor as clearly as how you put it here. furthermore they usually just send their clerk or assistant to call and deal with me.

i will ask them more about the % on stemp duty exemption.
thanks a bunch!

Hi Sifus,

My new property is almost completed by end of this year and I was told by my friend that I need to pay for the MOT.

However, when I called my agent and he said that I don't have to pay for the MOT as the developer do not apply for it and the S&P is already under my name.

Can someone please advice is this is possible/valid ?

If it is so, not applying for the MOT is it will affect my future transaction like selling off the property ?

I am still new in property purchasing and would like to get some guidance from the knowledgeable.

if you don't pay for your MOT, your title will not be under your name and will be under the master title, when you want to tell ur property later in the future when ur developer might not be here due to bankruptcy or gone edi, you'll have problem selling it.