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Legal Issues
Legal issues are complex procedures of paper work signing. Of course you have to understand every aspect before you put down your signature. There are a few things you should keep in mind:
- You should make your payment to developers through your own solicitor or lawful owner as he/she will protect your interests.
- You must read and fully understand the terms and conditions stated in the Sale and Purchase Agreement. Consult your solicitor if you want to amend anything before you sign the Sale and Purchase Agreement.
- Your solicitor should be fully responsible for the purchase of your house, and do not share the same solicitor with the seller, as a conflict of interest may occur.
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| Things that your solicitor should get: |
- Photocopies of purchaser's and seller's addresses, telephone numbers, and etc for identification.
- Original copy of Sale and Purchase Agreement.
- Deed of Assignment.
- Search on the master title of the house to assure that the seller is the rightful owner.
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Lawyer Fees:Effective from January 1, 1992 (Renewed in 2006), legal fees are standardized by the Solicitors’ Remuneration Order 1991/2006(renewed in 2006). There are two types of calculation for legal fees:
First Schedule (Sale and Transfer):Lawyer fees are determined by value of the house in the Sale and Purchase Agreement.
Effective from January 1, 1992 (Renewed in 2006), legal fees are standardized by the Solicitors’ Remuneration Order 1991/2006(renewed in 2006). There are two types of calculation for legal fees:
First Schedule (Sale and Transfer):Lawyer fees are determined by value of the house in the Sale and Purchase Agreement.
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House Value
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Buyer
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Seller
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1st RM150,000.00
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1% of House Value (Minimum RM300)
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1% of House Value (Minimum RM300)
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Next RM850,000
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0.7% of House Value
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0.7% of House Value
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For the next RM 2,000,000
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0.6% of House Value
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0.6% of House Value
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Fourth Schedule (Charges, Debentures and Security Loan Documents)
Lawyer fees are determined by the loan amount for the above documentation.
| Loan Amount |
Legal Fees to buyer
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1st RM150,000.00
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1% of the Loan Amount (Minimum RM300 per transaction)
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Next RM850,000
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0.7% of Loan Amount
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For the next RM2milliom
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0.6% of Loan Amount
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** Fees subject to 5% government tax.
Stamp Duty
There are two types of Stamp Duties:
1) Stamp Duty on Loan Amount
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Loan Amount (RM’000)
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50
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100
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150
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200
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250
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300
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Stamp Duty (RM)
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250
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500
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750
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1000
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1250
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1500
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2) Progressive Present Stamp Duty on Transfer of House Title
| House Value |
Stamp Duty Payable
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1st RM100,000
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1%
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Next RM400,000
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2%
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Next RM1.5 million
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3%
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Thereafter
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