Key Learnings - Lawyers Lesson 2
Hiring lawyers comes with a cost :). As such, to assist new home buyers who have just purchase, or those who are planning to buy their first dream home in Malaysia, I’ll be listing a list of Legal Fees to be aware of.
Lesson 2 - Lawyer Fees
The fee structure listed below is applicable on to home buyers who fits the following criteria
- Bought/Purchase a home which is still under developer master title
- Obtained a loan facility from any Bank
For homebuyers who fulfilled the above criteria, do note that you would have to be prepared to fund the following lawyer Fees.
- Lesson 2.1 - Sales and Purchase Agreement (SnP)
SnP is an agreement between you (the homebuyer) and the developer. It serves to protect the interest of both paarties in the event of a dispute and the clauses in the document is safeguarded and dictated by Malaysian Law.
During the SnP, the developer may impose on the buyer several other “Agreements” for eg The Deed of Mutual Covenant. In brief the Deed Of Mutual Covenant is used to protect the rights of each and every individual household within the gated community as well as the right for the developer to run the maintenance and upkeeping of the facilities within the said property within a certain period of time upon completion.
Legal fees for SnP is dependent on the Purchase price of your Dream home. Basically you should be able to estimate your lawyer fees based on the following
- First RM100000 - 1%
- Next RM100000 - RM4.9 million - 0.5%
- RM4.9million - RM10million - 0.25%
- Above RM10million - Negotiable.
SO typically for a property costing RM300000, do expect to fork out at least RM2000 in professional fees alone for SnP.
There are several other Miscellanous fees attached tot he whole SnP billl as well for eg Travelling, Stamping, Photocopying, Miscelllanous (yupz there’s a space for Miscellanous) and Searches (Bankcruptcy, Title). These miscellanous fees could easily add another RM300-400 in your final bill.
Thats all for today. Check back to my blog daily for the next writeup on the Loan Documentation Lawyer Fees.
Tags: Lawyer fees, Legal Fees, Malaysia, Home, Property, Properties
hi,
i saw your blog accidentally.
And found out that the property u bought is the same as us…
so we will be neighbor in future
what stage r u in now ?
we have sign our S&P and loan agreement.
Now waiting for bank to send back the signed loan agreement back to lawyer for stamping.
we receive letter from developer our unit has reach 85% completion. nice
hi Bee!
Oh wow! that’s great!
:D WOw! hi neighbour! ahahahaha
That’s cute! nice to hear from you. We have never expected to get to know neighbours through our blog. This is really cool! Hope to be able to meet up one day. I guess we would, won’t we?
For us, we have signed our S&P and loan agreement too. And the bank has taken the first drawdown, meaning, we have to start servicing our loan! Oh my…
How bout you? what’s the status now?
REally happy for you! Your house is already 85% complete, meaning yours must be the first few units I guess. Is it the three-storey ones or the double-storey ones?
I guess you must be pretty excited. I am! hahahahaa
Anyway, nice to hear from you. Do drop by always yah, we have major updates and revamp coming up soon. Feel free to recommend this site to your friends and family members if you find it useful, thanks!
Hope to hear from you again, till then, take care!
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