Everyone would like to buy a property, either for ownstay or for an investment. However, do you know that on top of the property price, you have to pay a substantial amount of money for legal or lawyer fees and stamp duty?
Legal fees is payable to the appointed lawyer who will prepare Sale & Purchase Agreement between purchaser and vendor. On other hand, Stamp Duty which also known as Memorandum Of Transfer (MOT) is payable to the government & collected by Lawyer on behalf of the government.
Below is the details on how to calculate Legal Fees & Stamp Duty or else you may use onlineLegal Fees & Stamp Duty calculator.
1. Legal or Lawyer Fees.
| Purchase Price (RM) | Fees (% from purchase price) | Legal Fees |
|---|---|---|
| First 150k | 1% (minimum RM300) | RM300 – RM1,500 |
| Next 850k | 0.70% | RM1,501 – RM7,450 |
| Next 2M | 0.60% | RM7,451 – RM19,450 |
| Next 2M | 0.50% | RM19451 – RM29450 |
| Next 2.5M | 0.40% | RM29,451 – RM39,450 |
| Exceed 7.5M | Negotiable (maximum 0.40%) | from RM39,450 |
On top of that, there are 5% government tax and approximately between RM500 to RM1,000 disbursement cost.
Disbursement cost covers the following,
- Stamping of SPA (RM10 per copy x 4)
- Bankruptcy/ Winding up search
- Company search (if applicable)
- Land search (before preparation of the SPA & prior to the filing of the Form 14A at the Land Office)
- Registration of Transfer at Land Office
- Affirmation on the Statutory Declaration to request for the 50% waiver on the stamp duty on the transfer/ on the assignment.
- Stamping on the Statutory Declaration to request for the 50% waiver on the stamp duty on the transfer/ on the assignment
- Transportation
- Printing/ Facsimile/ Telephone/ Photocopy charges
- Miscellaneous charges
2. Stamp Duty or Memorandum Of Transfer (MOT)
| Purchase Price (RM) | Fees (% from purchase price) | Stamp Duty |
|---|---|---|
| First 100k | 1% | RM0 – RM1,000 |
| Next 400k | 2% | RM1,001 – RM9,000 |
| Exceed 500k | 3% | from RM9,000 |
Alternatively, you may use online Legal Fees & Stamp Duty calculator to calculate automatically.
Source : http://1-million-dollar-blog.com/how-to-calculate-legal-fees-stamp-duty-when-buying-a-property/
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