SRAO 2017 and Changes to Property-Related Legal Fees
|Amount Secured or Financed||Scale of Fees|
|For the first RM500,000||1%|
|Next RM2 million||0.7%|
|Next RM2 million||0.6%|
|Next RM2.5 million||0.5%|
Where the adjudicated amount exceeds RM7.5 million, the excess can be negotiated. As an example, under the old SRO 2005 scale, the fees chargeable for the S&P of a RM1.5 million property would be RM10,450.00, while the fees under the new SRAO 2017 scale would be RM12,500.00. Under the SRO 2005, the fees chargeable for transactions governed by the Housing Development (Control and Licensing) Act 1966 (essentially, the purchase of property from developers) were at a lower rate of about 65 – 75% of the full scale fees, depending on the purchase consideration.
The SRAO 2017 also replaced the previous Third Schedule of the SRO 2005 by introducing a new fees scale for charges, debentures, and other security or financing documents. The SRAO 2017 maintained the reduced percentage for fees chargeable for transactions governed by the Housing Development (Control and Licensing) Act 1966 with some changes made to the purchase consideration and loan thresholds.