Solicitors' Remuneration Order 2023: Legal Fees

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Short answer: property legal fees in Malaysia are set by the Solicitors' Remuneration Order 2023 [P.U.(A) 207/2023], in force since 15 July 2023. But "set by law" does not mean fixed to the ringgit. A discount of up to 25% is permitted on some schedules and none at all on others, and knowing which you are in is worth real money.

The Discount Rule

Paragraph 6, in terms:

"(1) A solicitor may give a discount of up to twenty five percent on the fee specified in Table A of the First Schedule and Table A of the Third Schedule. (2) No discount may be given on the fee specified in Table B of the First Schedule, the Second Schedule, Table B of the Third Schedule, the Fourth Schedule, the Fifth Schedule and the Sixth Schedule."

In plain terms:

You are doing Schedule Discount?
Buying sub-sale First Schedule, Table A Up to 25%
Taking financing on a sub-sale Third Schedule, Table A Up to 25%
Buying from a developer (HDA) First Schedule, Table B None
Financing a developer purchase Third Schedule, Table B None
Tenancy or lease Second Schedule None

So on a sub-sale there is a genuine 25% to ask about. On a developer purchase, comparing quotes is a waste of time — the scale is the scale, and a firm quoting below it is in breach.

Undercutting is not a minor matter for the solicitor: it breaches Rule 52 of the Legal Profession (Practice and Etiquette) Rules 1978, which is misconduct under section 94(3)(d) of the Legal Profession Act 1976, exposing them under section 94(2) to being struck off or suspended for up to five years.

The Scales

Sale and transfer — First Schedule, Table A

Portion of price Fee
First RM500,000 1.25% (minimum RM500)
Next RM7,000,000 1%
Above RM7,500,000 Negotiable, not exceeding 1% of the excess

On an RM500,000 sub-sale: RM6,250 before any discount. With the full 25% permitted discount: RM4,687.50.

Developer purchases — First Schedule, Table B

Expressed as a percentage of the Table A fee:

Price Table B fee
RM50,000 or less Flat RM500
RM50,001 to RM250,000 75% of Table A (min RM500)
RM250,001 to RM500,000 70% of Table A
RM500,001 to RM1,000,000 65% of Table A
Above RM1,000,000 50% of Table A

Which means a developer purchase is often cheaper on the base fee than a sub-sale — even before the sub-sale's permitted discount. At RM1.5 million, Table B is half of Table A.

Financing documents — Third Schedule

"Charges, Debentures and other Security or Financing Documents". Table A carries the same numerical scale as the First Schedule, applied to the amount secured or financed rather than the purchase price. Table B mirrors the same tiering for HDA transactions.

Subsidiary instruments are 10% of the full scale fee, with a minimum of RM500 and a maximum of RM2,000.

Note that the financing fee is charged separately from the sale and transfer fee. On an RM500,000 purchase with RM450,000 financing you are paying two scale fees, not one.

Tenancy and lease — Second Schedule

A schedule people frequently look for in the wrong place. This is the Second Schedule, not the Third.

Monthly rent ≤ RM10,000 Monthly rent > RM10,000
Lease 60% of one month's rent (min RM1,000) Between 30% and 50% of one month's rent
Tenancy 30% of one month's rent (min RM500) Between 15% and 25% of one month's rent

On a RM2,000/month tenancy, the fee is RM600. But the minimum is RM500, so on a RM1,200/month tenancy the fee is RM500 rather than RM360.

And no discount is permitted here at all.

One thing to be careful about when citing this: the Order distinguishes lease from tenancy only by heading and by monthly rent. It contains no three-year threshold. The three-year line between a lease and a tenancy comes from the National Land Code, not from the SRO — do not attribute it to this Order.

What the Fee Covers

Paragraph 6 of the First Schedule provides that the remuneration includes all usual and necessary attendances up to completion of the transaction, including preparing the sale and purchase agreement and preparing and registering the instrument of transfer or deed of assignment where no individual or strata title has been issued.

Disbursements are separate and are not part of the scale: stamp duty, land office registration fees, title searches, bankruptcy searches, and courier costs. When comparing quotes, check whether disbursements are being estimated or omitted, because that is where two "same fee" quotes stop matching.

Acting for Both Sides

Paragraph 7(1) prohibits a solicitor from charging one party where the solicitor also acts for the other party in the same transaction. Paragraph 7(2) allows an exception where there is no conflict of interest and the solicitor has prepared, filed or witnessed documents in the Fourth and Fifth Schedules for the other party.

Still Current

The SRO 2023 revoked the 2005 Order, with a saving for non-contentious business commenced before it took effect.

Checking the official subsidiary legislation register from 2023 through July 2026 for instruments mentioning "Solicitors" or "Remuneration": the SRO 2023 is listed as the principal order, and the only later related instrument is P.U.(A) 47/2024, the Solicitors' Remuneration (Enforcement) (Amendment) Rules 2024 of 16 February 2024, which amends the enforcement and complaints rules rather than the fee schedules. No amendment order to the fee scales exists for 2024, 2025 or 2026.

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