Buy Rent

Legal Fees for Loan Agreement

THIRD SCHEDULE

[Paragraph 2(c)]

Charges, Debentures and other Security or Financing Documents

Amount secured or financed 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 amount secured or financed is in excess of RM7,500,000 Negotiable on the excess (but shall not exceed 0.4% of such excess)
For the principal instrument Full scale fee
For each subsidiary instrument within the meaning of subsection 4(3) of the Stamp Act 1949 [Act 398] 10% of scale fee (subject to a minimum fee of RM200 and a maximum fee of RM1,000)

Notwithstanding the above rates, in the case of any transaction governed by the Housing Development (Control and Licensing) Act 1966 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 financier/chargee or the borrower/chargor, shall be-

 

(a)

RM250, if the consideration as well as the loan sum is RM45,000 or below;

 

(b)

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

 

(c)

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

 

(d)

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

RULES UNDER THE THIRD SCHEDULE

1. A solicitor shall act only for the financier/chargee or the borrower/chargor and the remuneration of the solicitor shall be in accordance with the applicable scale fee specified based on the secured or financed amount.

2. Where additional facilities are granted on the security of any existing charge or debenture or other security document, which is being stamped additionally to cover such facilities, the remuneration of the solicitor shall be in accordance with the applicable scale fee specified based on the amount of the additional facilities.

3. In respect of the preparation of security documents and/or agreements for Islamic banking business as defined in the Islamic Banking Act 1983-
  (a) the scale fee specified for the principal instrument or document shall be based on the principal amount provided or financed by the financier (subject to a minimum fee of RM300); and
  (b) the fee for each of the subsidiary or other instrument prepared in relation to the financing transaction (made according to the Syariah principles), to secure the repayment of monies provided or financed, shall be 10% of the applicable scale fee, subject to a minimum fee of RM200 and a maximum fee of RM1,000 for each subsidiary or other instrument.

Source: - http://www.malaysianbar.org.my/solicitors_remuneration_order_2005/third_schedule.html