Sunday, July 27, 2008

Malaysian Lawyer Scale Fee in Non Contentious Matter

Hi,

I have been asked a lot by the readers who are concern about the legal fee chargeable by lawyer in conducting non-contentious matter. I guest most of the people do not exactly know that in non-contentious matter there is a fix scale fee need to be followed strictly by lawyers. What is non-contentious matter? For example contract, agreement, transfer of property ownership and so on which is non litigation and non dispute matter.

For the sake of public reference, I append bellow the scale fee under the Solicitors' Remuneration Order 2005 (the scale however only cover certain area of practice, other areas of non contentious matter are not fall under the scale fee and fee chargeable will be determine by certain criterion):-


FIRST SCHEDULE

[Paragraph 2(a)]

Sale and Transfer

Consideration or Adjudicated Value

Scale of Fees

For the first RM150,000

1.0% (subject to a minimum fee of RM300)

For the next RM850,000

0.7%

For the next RM2,000,000

0.6%

For the next RM2,000,000

0.5%

For the next RM2,500,000

0.4%

Where the consideration or adjudicated value is in excess of RM7,500,000

Negotiable on the excess (but shall not exceed 0.4% of such excess)


Notwithstanding the above rates, in the case of any transaction governed by the Housing Development (Control and Licensing) Act 1966 [Act 118] or any subsidiary legislation made under that Act, the remuneration of the solicitor having the conduct of and completing the transaction, whether acting for the vendor or the purchaser, shall be-

(a)

RM250, if the consideration is RM45,000 or below;

(b)

75% of the applicable scale fee specified, if the consideration is in excess of RM45,000 but not more than RM100,000;

(c)

70% of the applicable scale fee specified, if the consideration is in excess of RM100,000 but not more than RM500,000; or

(d)

65% of the applicable scale fee specified, if the consideration is in excess of RM500,000.

RULES UNDER THE FIRST SCHEDULE

1. A solicitor shall act only for the vendor/transferor or the purchaser/transferee and the remuneration of the solicitor shall be in accordance with the applicable scale fee specified based on the consideration for, or the adjudicated value of, the transaction.

2. A solicitor acting for the purchaser may also act for his client in the subsequent sale.

3. A solicitor acting for the purchaser may also act for his client in the financing transaction.

4. In a transaction involving a property put up by a solicitor for sale by public auction on behalf of his client-

(a)

if the property is sold-

(i)

the remuneration of the vendor's solicitor for conducting the sale (including drafting and settling conditions of sale) shall be the full scale fee specified based on the sale price of the property;

(ii)

if the same solicitor thereafter acts for the vendor to complete the transaction (including investigating the title, preparing, perusing and completing the instrument of transfer), his additional remuneration shall be 50% of the full scale fee specified based on the sale price of the property;

(iii)

the remuneration of the purchaser's solicitor shall be the full scale fee specified based on the sale price of the property; and

(iv)

where a property held under the same title is divided into lots for convenience of sale and the same purchaser buys several such lots and one transfer is effected in respect of such lots, the remuneration of the solicitor specified in subparagraphs 4(a)(i), (ii) and (iii) shall be based on the aggregate prices of such lots;

(b)

if the property is not sold, the remuneration of the vendor's solicitor (including drafting and settling conditions of sale) shall be-

(i)

50% of the full scale fee specified based on the reserve price;

(ii)

if there is no reserve price, 50% of the full scale fee specified based on the highest bid as certified in writing by the auctioneer; or

(iii)

if there is no reserve price and no bid, in accordance with rule 1 of the Sixth Schedule;

(c)

if the property is not sold at the first attempt but is sold at a subsequent attempt, the remuneration of the vendor's solicitor for the first attempt shall be in accordance with subparagraph 4(b)(i), (ii) or (iii), and for the subsequent successful attempt, the remuneration of the vendor's solicitor shall be the full scale fee based on the sale price of the property; and if the property is not sold after two or more attempts, the remuneration of the vendor's solicitor for the first attempt shall be in accordance with subparagraph 4(b)(i), (ii) or (iii) and for each subsequent unsuccessful attempt, the remuneration of the vendor's solicitor shall be in accordance with rule 1 of the Sixth Schedule; and

(d)

where a property held under the same title is divided into lots for convenience of sale, the remuneration of the vendor's solicitor specified in subparagraph 4(b)(i) and (ii) shall be based on the aggregate of the reserve prices, or if there are no reserve prices, the aggregate of the highest bids as certified in writing by the auctioneer.

5. The scale of fees in this Schedule shall also apply to transfers of charges and leases, based on the consideration for such transfers or the adjudicated value.

6. In addition to any other fees payable to a solicitor under this Order, a solicitor who arranges-

(a)

a sale for a vendor (other than a sale by public auction in which event rule 4 of this Schedule shall apply); or

(b)

a purchase by a purchaser,

and negotiates the price and terms and conditions thereof, shall be entitled to an additional negotiating fee equivalent to the full scale fee specified in this Schedule.

7. The remuneration specified in this Schedule shall be inclusive of all normal and necessary attendances up to the completion of the transaction, including the drawing up of a sale and purchase agreement and the preparation and registration of the instrument of transfer or the deed of assignment where no individual document of title or strata title has been issued.


End.

There are 5 other schedules remaining and you may refer to Malaysian Bar Council official Website at http://www.malaysianbar.org.my/solicitors_remuneration_order_2005/ . If you have any question regarding this schedule please email me or just leave a comment.

Regards,

Kamarul Irzuan Bin Hj Busu Piah

2 comments:

  1. Hi Kamarul, glad to see another M'sia lawyer blog. can we exchange link? Anyway, I have link to you.

    Please also check my another law webaite www.eLawyer.com.my

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  2. sir ...gud day... need ur clarification... i have a case.. an employment case where i was terminated unlawfully... i have paid my counsel rm500 to start of with my case... i was terminated in 2004.. in 2010 on july.. i was awarded wt 41k out of court settlement... my counsel gave me 20k n said 21k would be his fees... so how i do i go about it cos it is ridiculious for him to get so much...

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