Usually, yes.

Legal fees are generally separate from stamp duty and other transaction-related costs.

Depending on the transaction, buyers may need to budget for items such as:

  • Sale and Purchase Agreement (SPA) legal fees

  • Loan documentation legal fees

  • MOT stamp duty

  • Loan agreement stamp duty

  • Registration and disbursement fees

  • Other applicable charges

The exact amount depends on the transaction and applicable fee schedules.

Why there are usually two sets of legal fees

Most financed purchases involve two separate pieces of legal work: the purchase itself, and the loan documentation. Each is charged on its own scale.

The SPA legal fee is calculated on the purchase price, following a tiered scale that starts at 1.25% of the first RM500,000 and 1% of the next RM500,000. The loan legal fee uses the same scale but applies it to the loan amount, starting again from the first tier — it is not a continuation of where the SPA fee left off. Fees for higher-value transactions follow further tiers, and above a certain level are negotiable, so ask your solicitor for a quotation rather than assuming a rate.

SST applies to the legal fees

Service tax at 8% is charged on legal services. It does not apply to stamp duty, to the valuation fee, or to disbursements — only to the legal fees themselves.

What the full picture looks like

For a RM500,000 property purchased with a 90% margin of finance, a typical upfront breakdown looks roughly like this:

  • Down payment: RM50,000

  • MOT stamp duty: RM9,000

  • Loan agreement stamp duty: RM2,250

  • SPA legal fee: RM6,250

  • Loan legal fee: RM5,625

  • Valuation fee: approximately RM1,050

  • Disbursements: approximately RM1,500

  • SST on legal fees: RM950

That comes to roughly RM76,625 in total upfront cash, of which about RM26,625 sits on top of the down payment.

This is the figure that catches buyers out. The deposit is a little under two-thirds of what you actually need available at the start, and the remainder is not optional or deferrable.

Costs that may or may not apply to you

  • Valuation fee — usually required for a bank loan, though purchases directly from a developer often carry none

  • MRTA or MLTA mortgage insurance — optional in principle, frequently required in practice by the lender

  • Developer absorption — some new-build purchases come with legal fees or stamp duty absorbed by the developer as part of the package, so check what your offer actually includes

Our Stamp Duty Calculator brings all of these together into a single total upfront cash figure, alongside your estimated monthly instalment.

Please note: the figures above are estimates for planning purposes and are not legal advice. Legal fee scales, SST and disbursements vary by transaction and by firm. Ask your solicitor for a written quotation before committing.