Version: CN
The recent revision of the Solicitors’ Remuneration Order 2023 (SRO 2023) has shown an increase in legal fees for conveyancing matters.
For properties priced between RM500,000 and RM5,000,000, the increase in legal fees can go up to 46%, which means that individuals involved in property transactions may experience higher costs for legal services related to conveyancing.
However, it’s crucial to understand that SRO 2023 also includes provisions that allow solicitors to offer discounts on their fees.
Solicitors can provide discounts of up to 25% on the prescribed legal fees for conveyancing services.
This discounting option is essential, as the actual legal fees may not be as expensive as they initially seem.
This can be particularly helpful for individuals concerned about the impact of the fee increase on their property transactions.
Moreover, the legal industry is known for its competitiveness. With the option to offer discounts and attract more clients, some solicitors may surpass the 25% discount mandated by SRO 2023.
They might be willing to negotiate even deeper discounts to win your business.
This competitive nature of the legal industry can work in favour of buyers and sellers of properties, as they have the opportunity to find solicitors who are willing to offer more affordable services.
Given these changes in the legal landscape, if you are planning to buy or sell a property, it is crucial to take proactive steps to manage your legal expenses.
One of the most effective approaches is to shop around and obtain quotes from different solicitors.
By comparing quotes from multiple legal professionals, you can better understand the cost implications and assess the most competitive options available.
Below is a comprehensive table detailing the changes that SRO 2023 brought about:
1. Sales and Transfer
2. Charges, Debentures and other Security Financing Documents
3. Lease
4. Tenancy
5. Discharge of Charge
6. Deed of Reassignment
7. For witnessing execution of a document
| Before 15th July | After 15th July | ||
| First copy | RM50 | First copy | RM100 |
| Each subsequent copy |
RM10 | Each subsequent copy |
RM50 |
8. For witnessing execution of a document and giving an attestation certificate
| Before 15th July | After 15th July | ||
| First copy | RM100 | First copy | RM200 |
| Each subsequent copy |
RM10 | Each subsequent copy |
RM100 |
9. Forms under section 352 until section 364 of the Companies Act 2016 [Act 777]
| Before 15th July | After 15th July |
| RM300 per set | RM500 per set |
10. Real Property Gains Tax Forms (CKHT)
11. Form CP 600 (Income tax registration number form for individual – LHDN
| Before 15th July | After 15th July |
| RM200 | RM500 |
12. Application to State Authority/ Statutory Body for consent to transfer/lease/charge
13. Filing of any other application or form or notification with or to an appropriate authority or any other party
14. Entry of private caveat pursuant to an option to purchase, sale and purchase agreement or financing transaction, including the required statutory declaration
| Before 15th July | After 15th July | ||
| First title | RM200 | First title | RM300 |
| Each subsequent title |
RM50 | Each subsequent title |
RM100 |
15. Withdrawal of private caveat
| Before 15th July | After 15th July | ||
| First title | RM150 | First title | RM200 |
| Each subsequent title |
RM50 | Each subsequent title |
RM100 |
16. Entry of trust caveat, including the required statutory declaration (no changes)
| Before 15th July | After 15th July | ||
| First title | RM500 | First title | RM500 |
| Each subsequent title |
RM100 | Each subsequent title |
RM100 |
17. Statutory declaration
| Before 15th July | After 15th July |
| RM100 per document | RM150 per document |
18. To certify a document
19. Application to Ministry of Economy or similar regulatory bodies
| Before 15th July | After 15th July |
| not less than RM750 per application | not less than RM3,000 per application |
20. Issuing new letter of undertaking by purchaser’s solicitor to the financier or the financier’s solicitor (No changes)
| Before 15th July | After 15th July |
| RM100 per letter | RM100 per letter |
This article written by Tan Jian En.
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Disclaimer: The views expressed are those of the Author and do not necessarily reflect the views of IQI. While the Author endeavours to keep the information up to date and correct, the Author make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the information or related graphics contained herein for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
