SPA Legal Fees in Malaysia: Complete Guide for Property Buyers (2026)

Purchasing a property in Malaysia involves more than just the purchase price. Legal fees under the Sale and Purchase Agreement (SPA) represent a significant portion of transaction costs that buyers must budget for. Governed by the Solicitors' Remuneration Order 2023, these fees are calculated on a sliding scale based on the property's purchase price. Understanding how these fees are structured helps buyers plan their finances and avoid unexpected expenses during the conveyancing process.

What Is the Solicitors' Remuneration Order?

The Solicitors' Remuneration Order (SRO) is issued under the Legal Profession Act 1976 and sets out the minimum and maximum fees a lawyer may charge for handling a sale and purchase of property in Peninsular Malaysia. The current SRO 2023 replaced the 2005 version and updated the fee scales to reflect changes in property values. All law firms in Johor Bahru and throughout Peninsular Malaysia must comply with these prescribed scales. Charging below the minimum is professional misconduct, while exceeding the maximum is equally prohibited unless special circumstances apply and are approved by the Bar Council.

SPA Legal Fee Scale for Property Purchases

Under the SRO 2023, the legal fees for preparing and completing a Sale and Purchase Agreement for a property purchase are calculated as follows:

• First RM500,000: 1.0% of the purchase price (minimum fee of RM1,500 applies)
• RM500,001 to RM1,000,000: 0.8% on this portion
• RM1,000,001 to RM5,000,000: 0.6% on this portion
• RM5,000,001 to RM15,000,000: 0.5% on this portion
• Above RM15,000,000: 0.25% on this portion (negotiable)

For example, on a property purchased for RM800,000 in Johor Bahru, the legal fee would be calculated as follows: RM500,000 at 1.0% equals RM5,000, plus RM300,000 at 0.8% equals RM2,400, giving a total legal fee of RM7,400. It is important to note that this fee covers only the SPA documentation and the conveyancing process, not the loan agreement.

Additional Legal Costs Beyond the SPA Fee

Property buyers in Malaysia should anticipate several additional costs beyond the basic SPA legal fee. The loan agreement legal fee is calculated on a separate scale under the SRO, typically at 1.0% on the first RM500,000 of the loan amount, 0.8% on the next RM500,000, and so on. Stamp duty on the transfer of property ownership (Memorandum of Transfer or Form 14A) is imposed under the Stamp Act 1949 and varies based on the property value. For the first RM100,000 the rate is 1%, RM100,001 to RM500,000 at 2%, RM500,001 to RM1,000,000 at 3%, and above RM1,000,000 at 4%. First-time home buyers may be eligible for stamp duty exemptions on properties below RM500,000 under government incentive schemes.

Other disbursement costs include search fees for land searches at the Land Office, registration fees for the transfer and charge, fees for obtaining the bankruptcy search, company searches (if the vendor is a company) and the cost of certified copies of title documents. These disbursements typically range from RM500 to RM2,000 depending on the complexity of the transaction and the state in which the property is located.

Who Pays the Legal Fees?

In a standard sub-sale transaction in Malaysia, each party bears its own legal fees. The purchaser pays for the SPA preparation and the loan agreement, while the vendor pays for the preparation of the transfer documentation. However, in new project launches by developers, the developer typically covers the SPA legal fees as part of the purchase package, although buyers remain responsible for the loan agreement fees. It is essential to clarify the fee arrangement before engaging a lawyer, particularly in developer transactions where the developer's panel lawyer may be appointed.

Can You Negotiate Legal Fees?

The SRO prescribes minimum and maximum fee scales, meaning lawyers cannot charge below the prescribed minimum. However, within the range, there may be some room for adjustment based on the complexity and volume of work involved. If a particular transaction involves unusual complexity, such as foreign buyer restrictions, joint venture arrangements or cross-border elements, a lawyer may apply to the Bar Council for permission to charge above the maximum scale. For straightforward residential conveyancing in Johor Bahru, most firms charge at or near the minimum prescribed rate.

Timeline for SPA Completion

The standard timeline for completing a SPA in Malaysia is three to six months from the date of execution. This includes obtaining the state authority's consent (if applicable), settling the outstanding loan on the property, executing the transfer and registering the new owner's name on the title. Delays can occur if there are issues with the title, unpaid quit rent or assessment, or if the financier takes longer than expected to release the redemption statement. Engaging an experienced conveyancing lawyer from Messrs S K Song ensures that the process runs efficiently and that your interests are protected throughout.

Why Engage Messrs S K Song for Your Property Purchase

The conveyancing team at Messrs S K Song has extensive experience handling residential and commercial property transactions in Johor Bahru. We provide transparent fee quotations upfront, guide buyers through every stage of the SPA process and ensure that all legal requirements are met within the prescribed timelines. Whether you are a first-time home buyer or a seasoned investor, our team is equipped to handle transactions of any complexity, including those involving foreign purchasers, bumi-lot transfers and strata-title properties.