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.

Thinking Of Buying Your 1st Home?

Few things to note for beginners;

• Know your budget, then ask yourself - is it for investment or stay?
• Think about the criteria - what type of property, at which location and at what price range?
• Know the market - search on internet on property for sale (focus on your criterias)..the website that always at the top of my mind is http://www.iproperty.com.my/.
• Match your criteria against the market price range and your budget. You may adjust your criteria (upward/downward) at this stage to suit your budget.
• View your potential property - contact the agent/ negotiator on the property advertisement for viewing arrangement or let your preferred NEGOTIATOR do the arrangement for you.
• Finally, decide on the property you want to buy..

You could maintain relationship with some property agent/NEGOTIATOR, who could assist you in looking for the property that would suit your criteria. A good negotiator could recommend properties for your viewing and provide additional information to you regarding the property. I myself is one of the NEGOTIATOR that you might want to consider. However, the area i'm covering is limited to Subang Jaya, USJ, Putra Heights, Sunway and Shah Alam.

Last but not least, after decision is made, there are more procedures, which you need to follow before you can get the title as the owner of the property. Perhaps, i can share with you in my future posting. Stay in touch!