Property Transaction Fees Up, Says Bar
The sale and transfer of property valued at RM500,000 and below are now subjected to a 1% conveyancing fee. The revision took effect on Wednesday.
According to the Bar Council, the decision came about with the review of the fee structure in the Solicitors’ Remuneration Order by the council last year.
The revision will see 0.8% conveyancing fee for properties worth more than RM500,000 but below RM1 million.
Previously only properties worth RM150,000 and below were subjected to a 1% fee while those costing above RM150,000 and up to RM1 million were imposed with a 0.7% charge.
But like the old Order, property transactions from licensed housing developers will automatically get between 25% and 35% reduction in fees depending on the value.
This means that for a property worth RM500,000, the new conveyancing fee is RM5,000 but will only come up to RM3,500 following reductions. In the past, the fee was RM2,765.
For a RM1 million property, the fee is RM5,850, up from RM4,842.
According to the association, the sum is calculated by charging the 1% fee on the first RM500,000 before adding the 0.8% fee on the subsequent value. This total is then deducted with the 35% reduction.
Before the revision in March last year, the fee structure had remained the same for the past 11 years.