How Much Is Lawyer Fees When Buying A House In Malaysia? – Legal Fees Malaysia 2020

One day, I was having a conversation with our associate lawyer.

What interesting in the conversation was, she mentioned that some client was unaware that they were required to pay two types of legal fees when buying a house.

On that note, I think it’s quite essential for me to highlight it here. When purchasing a house and taking a home loan in Malaysia, you are required to pay two legal fees.

Let me elaborate.

Purchaser And Seller

Okay, let start from the beginning.

When you buy a house from someone, you are a Purchaser, and someone who is selling their home is a Seller.

Sale And Purchase Agreement 

A seller will sell his/her house to you, a purchaser.

To make the purchase official or legally binding in the eye of the law, you need to hire a lawyer to prepare an agreement called Sale and Purchase Agreement; some will call in short SPA or SNP. Either way, it the same thing.

The lawyer that prepares the SPA, we called SPA lawyer. So, your SPA lawyer will charge legal fees for the preparation of the  Sale and Purchase Agreement.

Sale And Purchase Agreement Legal Fees Malaysia

The legal fees for SPA agreement will be about 3-4% of the purchase price. It includes professional legal fees, disbursement fees, and stamp duty.

For example,

The Purchase Price is RM500,000.

So, 3% x RM500,000 = RM15,000

And, 4% x RM500,000 = RM20,000

In this case, the total cost is in the range of RM15,000 to RM20,000.

For the SPA legal fees cost, you’ll need to make a payment during the signing of the SPA.

If you’re not going to apply for a home loan, then this is the only cost.

legal fees malaysia

Loan Agreement

However, most of us will need a home loan to support our house purchased. Therefore, when you apply for a home loan, you’re required to enter another agreement called Loan Agreement.

This agreement will be between you, The Borrower, and Bank, The Lender.

Loan Agreement Legal Fees Malaysia

A bank lawyer requires to prepare the Loan Agreement and complete the Loan Agreement by making sure all the necessary steps have taken before the bank release any money to the Seller.

Therefore, there is another Legal Fee for this, and we called it Loan Agreement Legal Fees.

Loan Agreement Legal Fees are about 2-3% from the Loan Amount. It includes a professional legal fee, disbursement fee, and stamp duty.

For example,

Loan Amount is RM450,000,

So, 2% x RM450,000 = RM9,000

And, 3% x RM450,000 = RM13,500

In this case, the total cost is in the range of RM9,000 to RM13,500.

The best part is this Loan Agreement Legal Fee is allowed to be financed with your loan. 

Though the Loan Agreement Legal Fees is allowed to be financed, some banks will only allow for maximum finance of 90% included Loan Agreement Legal Fees and Valuation Fee.

However, there are still a few banks that allow for financing exceed 90% like Maybank and CIMB Bank.


When purchasing a house, there are two legal fees involved.

a. Sale and Purchase Agreement – Between Seller and Purchaser

b. Loan Agreement – Between Borrower and Bank

Sumber : Malaysia Housing Loan

Jika anda sedang mencari untuk Beli atau Sewa / Jual Hartanah, kami mempunyai mereka untuk anda di Malaysia.

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