Legal Fees for Buying a House in Malaysia: SPA and Loan Agreement Scale Fees (2026)

In Peninsular Malaysia, the lawyer's fee for a property purchase is set by the Solicitors' Remuneration Order 2023. It's 1.25% of the first RM500,000 and 1% of the next RM7,000,000, charged once on the sale and purchase agreement (SPA) and again on the loan agreement. For a RM450,000 subsale home with a RM405,000 loan, that's RM5,625 for the SPA and RM5,062.50 for the loan before any discount, service tax or disbursements.

This guide shows how the scale works, when the lower developer (Table B) rates apply, how much discount a lawyer can give, and what else appears on the bill. It ends with two worked examples in RM.

Which rules apply

The Solicitors' Remuneration Order 2023 (P.U.(A) 207/2023) took effect on 15 July 2023 and replaced the 2005 Order. Matters that started before that date stay under the old Order. It's made under the Legal Profession Act 1976, so it covers lawyers in Peninsular Malaysia. Sabah and Sarawak have their own rules.

A typical home purchase with a bank loan carries two separate scale fees:

• SPA / transfer fee (First Schedule), based on the purchase price (or the adjudicated value, at the lawyer's discretion)
• Loan agreement / charge fee (Third Schedule), based on the amount financed, including any MRTA or legal fees you roll into the loan

The scale fee (Table A): subsale and most purchases

The same scale applies to the SPA and to the loan documents:

• First RM500,000: 1.25%, with a minimum fee of RM500
• Next RM7,000,000 (RM500,000.01 to RM7,500,000): 1%
• Above RM7,500,000: negotiable, but no more than 1% of the excess

Discount: paragraph 6 of the Order lets a lawyer give a discount of up to 25% on Table A fees, for both the SPA and the loan. At the maximum discount, the RM5,625 SPA fee on a RM450,000 home becomes RM4,218.75. A lawyer can't go lower than that, and no discount at all is allowed on Table B fees.

Table B: buying from a developer

If the purchase falls under the Housing Development (Control and Licensing) Act 1966, which covers most new homes bought direct from a licensed developer, Table B applies instead. It's a percentage of the Table A fee:

• RM50,000 or less: RM500
• Above RM50,000 to RM250,000: 75% of Table A (minimum RM500)
• Above RM250,000 to RM500,000: 70% of Table A
• Above RM500,000 to RM1,000,000: 65% of Table A
• Above RM1,000,000: 50% of Table A

The Third Schedule has a matching Table B for the loan documents on these purchases, using the same percentages applied to the amount financed.

Extra documents: the 10% rule

Some loans need more than one security document. The main (principal) instrument is charged the full scale fee. Each subsidiary instrument is charged 10% of the full scale fee, with a minimum of RM500 and a maximum of RM2,000 per document. Islamic home financing often uses several documents, and the same rule applies, with an exception for Syariah-compliant home financing up to RM500,000, where documents needed only for Syariah compliance count as part of the principal instrument.

For example, on a RM405,000 loan, the principal loan agreement fee is RM5,062.50, and one subsidiary document would add 10% of that, which is RM506.25.

What isn't included in the scale fee

Paragraph 3 of the Order says the scale fee doesn't include:

• Stamp duty (see our property stamp duty guide)
• Registration fees and search fees
• Valuer's fees
• Travel and accommodation
• Other disbursements, which must be itemised on the bill
• Miscellaneous expenses up to RM100

Service tax: if the law firm charges service tax, the rate for taxable services is 8% (Royal Malaysian Customs Department, since 1 March 2024). On a RM5,625 fee, that's RM450.

A few other rules are worth knowing:

• A lawyer who finds the property for you and negotiates the price can charge an extra negotiating fee of up to 3% of the price (First Schedule, rule 5).
• Unpaid bills can carry interest at 8% a year, starting one month after the lawyer asks for payment (paragraph 5).
• When you later settle the loan, the discharge of charge fee is RM400 for the first title (Fourth Schedule). See housing loan early settlement.

Worked example 1: RM450,000 subsale home

Aiman buys a subsale condo for RM450,000 with a 90% loan of RM405,000. It isn't his first home, so no stamp duty exemption applies.

Legal fees at full scale (Table A):

• SPA: 1.25% × RM450,000 = RM5,625
• Loan agreement: 1.25% × RM405,000 = RM5,062.50
• Service tax at 8%, if charged: RM450 + RM405 = RM855
• Total legal fees with SST: RM11,542.50, plus disbursements

With the maximum 25% discount:

• SPA: RM4,218.75 + 8% SST = RM4,556.25
• Loan: RM3,796.88 + 8% SST = RM4,100.63
• Total: RM8,656.88, which is RM2,885.62 less than full scale

Stamp duty (paid on top):

• Transfer (MOT): 1% of the first RM100,000 + 2% of the next RM350,000 = RM1,000 + RM7,000 = RM8,000
• Loan agreement: 0.5% × RM405,000 = RM2,025

At full-scale legal fees, Aiman needs about RM21,567.50 for legal fees, SST and stamp duty, on top of his RM45,000 down payment and before disbursements.

Worked example 2: RM600,000 home from a developer

Mei Ling buys a new terrace house direct from a licensed developer for RM600,000, with a loan of RM540,000. Table B applies to both documents.

• SPA: Table A fee on RM600,000 = RM6,250 + RM1,000 = RM7,250 → 65% = RM4,712.50
• Loan: Table A fee on RM540,000 = RM6,250 + RM400 = RM6,650 → 65% = RM4,322.50
• Service tax at 8%, if charged: RM377 + RM345.80 = RM722.80
• Total legal fees with SST: RM9,757.80, plus disbursements

These are fixed amounts. No discount is allowed on Table B fees. Some developers offer to pay the SPA legal fees as a promotion, so check whether yours does and get it in writing.

Refinancing

A refinance needs a new loan agreement, so the Third Schedule scale applies to the new loan amount. On a RM370,000 refinance, the full-scale fee is RM4,625 (RM3,468.75 at the maximum 25% discount), plus SST, stamp duty and the discharge of the old charge. Our refinancing guide shows how to compare that cost with the interest you save.

Common mistakes

• Budgeting only for the SPA fee. The loan agreement has its own scale fee, often almost as large.
• Expecting a discount on a developer purchase. Table B fees can't be discounted.
• Assuming the quote covers everything. Stamp duty, registration, searches and other disbursements are billed separately.
• Forgetting SST. If the firm charges service tax, it adds 8% to the fee.
• Rolling legal fees into the loan without checking. It raises the amount financed, which increases the loan agreement fee, the 0.5% loan stamp duty and your monthly instalment.

How to check your quote

1. Work out the Table A fee for the price and for the loan amount using the scale above.
2. If you're buying from a developer, apply the Table B percentage instead.
3. For a subsale, check whether the discount takes either fee below 75% of the Table A scale. That isn't allowed.
4. Ask for disbursements and SST to be listed separately.
5. Plug the final loan amount into the housing loan calculator to see your instalment.

For the full list of upfront costs for a first purchase, see buying your first house before 30.