Pages

Saturday, May 14, 2011

How to estimate legal fee and stamp duty on property purchase?

When buying a property, we have to take note that there are additional costs that we would have to pay on top of the property price, mainly:

  1. Legal fee (payable to lawyers preparing the S&P and Loan Agreement)
  2. Stamp duty (payable to the government & collected by S&P lawyer on behalf of the government)
The legal fee and stamp duty is payable upon signing each, the S&P agreement and loan agreement. The amount is depending on the value of the purchased property and also the amount of loan required to finance the purchased property.

The estimation of these costs could be made based on the % as stated in the tables below:

1) Legal Fee


Sale & Purchase Agreement
%
First 150K
 1.0
Subsequent up to 1M
 0.7
Subsequent up to 3M
 0.6
Subsequent up to 5M
 0.5
Subsequent up to 7.5M
 0.4


Loan Agreement
%
First 150K
 1.0
Subsequent up to 1M
 0.7
Subsequent up to 3M
 0.6
Subsequent up to 5M
 0.5
Subsequent up to 7.5M
 0.4


Note : 
  • Legal fees to be included 6% of government tax.
2) Stamp Duty

Stamp Duty – S&P Agreement
%
First 100k
 1.0
Subsequent up to 500K
 2.0
Subsequently onwards
 3.0


Stamp Duty – Loan Agreement
%
Loan Amount
 0.5


The information on the tables were dated 28 October 2010 from website: http://malaysiahousingloan.net.


1 comment: