Need some consultations regarding SPA & Loan Documents legal fees.

My lawyer just gave me a call and told me to pay for the remaining balance, that i understand. What I don't understand is, is there such thing as another payment for loan documents for bank's panel ?

My situation is my lawyer fees is for example 19k, so during the whole process to the point of signing SPA, we separately paid 3 times of payment, 1st payment is made to my lawyer's account, 2nd and 3rd payment were made to UOB's account. Which initially we thought these 3 payments is included in the 19k lawyer legal fees, but it turns out that it's not, so the separate charge fees for loan legal fees and disbursement is 10k, anyone can advice on this ?

My only question is, is there such thing as a separate fees charged for legal loan documents and disbursement ? For those who ask me to ask the bank or my own lawyer ( duh ), I don't understand even after my lawyer explained to me as this part of the 10k payment for loan documents were not mentioned anywhere throughout the process, nor did the bank mention anything.

SPA & Loan agreement are 2 separate Contracts . Hence, you need to pay separate fees.

SPA , between you & seller

Loan agreement , between you & financer.

There's so many fees / payment in buying a property.

To answer the question shortly yes, there is legal fees that has to be paid for SPA and legal fees for the loan.

Here are the major milestone payments (larger sums) when buying a 2nd hand house:
1. Remaining of the 10% loan to lawyer account. (Depending on how much % DP)
2. 3% stamp duty for the property.
3. Lawyer fees for the SPA
4. Lawyer fees for the loan

Understood, so simply put, there is 2 lawyers that I have to make payment to. The first payment which includes stamp duty / SPA / every bit of documents, is paid to my lawyer. The second payments which includes the same, every bit of documents, loan documents process etc, is paid to the bank's lawyer, would that be correct ?

TS, if you not aware of this fees , most likely you will missed out the Title Transfer cost when the Land Title or Strata Title is out. Be ready for this cost coming your way.

Yes. You need to pay for the 2 separate Documents. Sometimes it can be a same legal firm processing these 2 Documents.

Yes. And it follows house market price ?

Transaction price stated inside the SPA.

But what if after few years, strata title was yet to be issued. So it stil follows the price in SPA ?

On the paper procedure, they will use SPA price (so far for my cases). I personally haven”t kena the market price but I do heard got such cases. If kena higher market price , it can be both good & bad thing.

Good thing - your property price has went up significantly.

Bad thing - you need to pay more up front on the Strata Perfection & the rate is higher.

Oh ok. Great thanks for sharing!

SPA price or JPPH valuation, whichever is higher.

This post has been edited by mini orchard: Jan 18 2022, 07:45 PM

Your max fees for SnP and LA legal fees, MOT, Stamp Duty and all disbursements are about 5% of purchase price

Yes, that part I understand. But what makes this all so confusing is the result of both parties ( my lawyer and bank's lawyer ). Basically, only ONE lawyer is needed to do all the process, which includes SPA & Loan document. But for my lawyer, her company doesn't not meet the requirement to represent us to process loan documents etc, so she only handles SPA for us, but she did not mention this to us, nor did the bank lawyer. So as a result of my lawyer is unable to represent us to process loan documents, the bank took into themselves to do it for us ( quite obviously ) so now ended up we have to pay 2 side, but the amount of money would still more or less be the same.

So now as a result, after signing SPA and everything, she comes to me and tell me to pay her her SPA legal fees, that's where the confusion comes in. But it's all cleared now.

This post has been edited by Sotsotzaii: Jan 18 2022, 08:00 PM

Lawyers are vultures. My lawyer asked me to pay 100% of lawyer fees even at the time of signing of S&P even though I only received 10% of the selling price.

It this legal?

Most lawyers I dealt with request for partial payment (50%) upon sign SnP and the balance when full payment of purchase price or it can be deducted from the purchase price, whichever seller prefers.

Hi bro, can I know roughly how much the cost for this would be and this cost is paid to whom ? If you need details about the property, it's 600k double storey semi-d.

1st 100k = 1%
100,001-500k = 2%
500,001 - 600k = 3%

It should be around 12k. Your SPA lawyer will collect it from you.

Dont think How many lawyers. Just rmb these:-

SPA : buyer & seller - legal fees + stamp duty + disb

Loan : buyer & bank - legal fees + Stamp duty + disb

The reason is simple, dealing with different documents altogether extra Work Done. Unless you Cash buyer can Save on Loan part EXCEPT stamp duty

Hello,

Would like to know. I am engaging with a law firm to get quotation for my house purchasing processes. Based on the quotation, I think the firm quoted me the process related to the SPA, because the major chunks included in the quotation are the likes of Drafting, Vetting & Preparing Sale & Purchase Agreement & Stamp Duty / Ad Valorem (subject to LHDN Valuation). These two charges are as per the house's agreed value with seller.

My question is, can I ask them to include the legal fees for loan agreement as well? Or its normally being included in the loan or covered by the financier?

For info, the house that I am buying is priced at RM670k. And the firm quoted my ~RM23.5k.