Malaysia – The Solicitors’ Remuneration Order 2023.

By virtue of s 113 of the Legal Profession Act 1976, the Solicitors’ Costs Committee, chaired by the Chief Judge of Malaya passed the Solicitors’ Remuneration Order 2023 on 4 July 2023, effective 15 July 2023. The order provides for increased rates of the scale fees for conveyancing matters in Peninsular Malaysia. This article highlights the rate stipulated in the 2023 Order.

First Schedule – Sale and Transfer

Table A

1. For the first RM500,000: 1.25% (subject to a minimum of RM500)
2. For the next RM7,000,000: 1%
3. Exceeding RM7,500,000: Subject to negotiation on the excess but shall not exceed 1% of such excess

Table B

In the case of transaction governed by the Housing Development (Control and Licensing) Act 1966 [Act 118] or any subsidiary legislation made under that Act, the remuneration of the solicitor having the conduct of and completing the transaction, whether acting for the vendor or the purchaser, shall be as follows:

1. RM500, if the consideration is RM50,000 or less
2. 75% of the applicable scale fee specified in Table A, if the consideration is exceeding RM50,000 but not exceeding RM250,000
3. 70% of the applicable scale fee specified in Table A, if the consideration is exceeding RM250,000 but not exceeding RM500,000
4. 65% of the applicable scale fee specified in Table A, if the consideration is exceeding RM500,000 but not exceeding RM1,000,000
5. 60% of the applicable scale fee specified in Table A, if  exceeding RM1,000,000

Second Schedule – Lease and Tenancy

Lease

1. RM10,000 or less: 60% of the monthly rent (subject to a minimum of RM1,000)
2. Exceeding RM10,000: A minimum of 30% of the monthly rent but shall not exceed 50% of the monthly rent

Tenancy

1. RM10,000 or less: 30% of the monthly rent (subject to a minimum of RM500)
2. Exceeding RM10,000: A minimum of 15% of the monthly rent but shall not exceed 25% of the monthly rent

Third Schedule – Charges, Debentures, and other Security or Financing Documents

Table A

1. For the first RM500,000: 1.25% (subject to a minimum of RM500)
2. For the next RM7,000,000: 1%
3. Exceeding RM7,500,000: Subject to negotiation on the excess but shall not exceed 1% of such excess 
4. For the principal instrument: Full scale fee specified above
5. For each subsidiary instrument for the purposes of subsection 4(3) of the Stamp Act 1949 [Act 378]:  10% of the full scale fee specified above (subject to a minimum fee of RM500 and a maximum fee of RM2,000)

Table B

In the case of transaction governed by the Housing Development (Control and Licensing) Act 1966 [Act 118] or any subsidiary legislation made under that Act, the remuneration of the solicitor having the conduct of and completing the transaction, whether acting for the vendor or the purchaser, shall be as follows:

1. RM50,000 or less: RM500
2. Exceeding RM50,000 but not exceeding RM250,000: 75% applicable scale fee specified in Table A (subject to a minimum of RM500)
3. Exceeding RM250,000 but not exceeding RM500,000: 70% applicable scale fee specified in Table A
4. Exceeding RM500,000 but not exceeding RM1,000,000: 65% applicable scale fee specified in Table A
5. Exceeding RM1,000,000: 50% applicable scale fee specified in Table A
6. For each subsidiary instrument for the purposes of subsection 4(3) of the Stamp Act 1949: 10% applicable scale fee specified (subject to a minimum fee of RM500 and a maximum fee of RM2,000)

Fourth Schedule – Discharge of Charge and Deed of Reassignment

Discharge of Charge

1. RM400 for first title
2. RM100 for the additional title in the same instrument

Deed of Reassignment

1. RM500 for the first property
2. RM100 for each property in the same deed
3. Additional fee of RM200 if the deed of reassignment includes a revocation of power of attorney

Fifth Schedule – Preparing, filing or witnessing miscellaneous documents

1. Witnessing execution of a document – RM100 for first copy and RM50 for each subsequent copy 
2. Witnessing execution of a document and giving an attestation certificate – RM200 for first copy and RM100 for each subsequent copy
3. Forms under section 352 until section 364 of the Companies Act 2016 [Act 777] (new)/sections 108-113 of Companies Act 1965 [Act 125] (old) – RM500/set
4. Real Property Gains Tax Forms (CKHT Forms)
   • Form CKHT 1A – RM500
   • Form CKHT 1A (for each additional party) – Not less than RM300
   • Form CKHT 2A – Not less than RM400
   • Form CKHT 2A (for each additional party) – Not less than RM300
   • Form CKHT 3 – Not less than RM200 
   • Form CKHT 3 (for each additional party) – Not less than RM200
   • Form CKHT 502 (for each vendor) – Not less than RM250
5. Form CP 600 (Income tax registration number form for individual – LHDN) – RM500
6. Application to State Authority/ Statutory Body for consent to transfer/lease/charge
   • RM100,000 or less: RM200/application 
   • Exceeding RM100,000 but not exceeding RM1,000,000: RM500/application
   • Exceeding RM1,000,000: RM3,000/ application (subject to RM500 only for each application for consent to charge only)
7. Filing of any other form with an appropriate authority
   • Notice of sale or transfer under section 160 of the Local Government Act 1976 [Act 171] or to any other party: RM100/form or notification
   • Change of name of registered proprietor under section 378 of the National Land Code [Act 828], including the required statutory declaration: RM300/application
   • Change of address of registered proprietor under section 379 of the National Land Code: RM300/application 
   • Application for registration of personal representatives under section 346 of the National Land Code: Subject to the provisions of rule 1 of the Sixth Schedule, but not less than RM500 for first title and RM200 for each subsequent title
   • Application for registration of a statutory vesting order granted under section 415 of the National Land Code: Subject to the provisions of rule 1 of the Sixth Schedule, but not less than RM500 for first title and RM200 for each subsequent title
   • Application to the Estate Land Board under section 214A of the National Land Code: Subject to the provisions of rule 1 of the Sixth Schedule, but not less than RM3,000/application
   • Application to Ministry of Economy or similar regulatory bodies: Subject to the provisions of rule 1 of the Sixth Schedule, but not less than RM3,000/ application 
8. Entry of private caveat pursuant to an option to purchase, sale and purchase agreement or financing transaction, including the required statutory declaration – RM300 for first title and RM100 for each subsequent title
9. Withdrawal of private caveat – RM200 for first title and RM100 for each subsequent title 
10. Entry of trust caveat, including the required statutory declaration – RM500 for first title and RM100 for each subsequent title
11. Statutory declaration – RM150/document
12. To certify a document – Not exceeding RM100 for first certification and not exceeding RM50 for each subsequent certification of same document
13. Issuing new letter of undertaking by purchaser’s solicitor to the financier or the financier’s solicitor – RM100/letter

Sixth Schedule

1. A solicitor had conduct of a transaction where no individual document of title or strata title had been issued when the transaction was first completed, a fair and reasonable remuneration for the solicitor drawing up and completing the subsequent instrument of transfer or charge – maximum of 25% of the applicable scale fee specified in the First Schedule or the Third Schedule, subject to the specified minimum fee
2. A solicitor has conduct of any transaction after the issuance of the individual document of title or strata title but he did not have conduct of the transaction when it was completed before the issuance of the individual document of title or strata title, a fair and reasonable remuneration for the solicitor drawing up and completing the subsequent instrument of transfer or charge – maximum of 50% of the applicable scale fee specified in the First Schedule or the Third Schedule, subject to the specified minimum fee.

In conclusion, the majority of the remuneration involved in the conveyancing field have increased after the passage of Solicitors’ Remuneration Order 2023. The 2023 Order marks a positive step forward in supporting the legal profession and fostering a conducive environment for law firms to thrive, contributing to the continued delivery of efficient and effective legal services for clients in Peninsular Malaysia.