--- title: "Subsale House Legal Fees & Stamp Duty Schedule Malaysia 2026" description: "Subsale house costs in Malaysia 2026: SPA and loan legal fees (SRO 2023), 8% service tax, MOT and loan stamp duty, first-home exemption and the foreigner rate." datePublished: "2026-07-29" dateModified: "2026-07-29" canonical: "https://www.superhomes.my/resources/buying-subsale-house-legal-fee-stamp-duty-malaysia" --- # Subsale House Legal Fees & Stamp Duty Schedule Malaysia 2026 **Subsale House Legal Fees & Stamp Duty Schedule Malaysia 2026** Buying a RM500,000 subsale house in Malaysia costs about RM25,100 on top of the price in 2026, roughly 5%: RM6,250 SPA legal fee, RM5,625 loan legal fee, RM950 service tax, RM9,000 MOT stamp duty, RM2,250 loan stamp duty and about RM1,050 valuation. A first-time Malaysian buyer at RM500,000 or less pays no stamp duty, cutting that to about RM13,900. When buying a secondary market (subsale) house in Malaysia, the purchase price is only part of the total cash required. Beyond the 10% down payment, buyers must budget roughly **4% to 6% of the price** for transaction costs: **Sale and Purchase Agreement (SPA) legal fees**, **Memorandum of Transfer (MOT) stamp duty**, **loan agreement fees**, **service tax** and **valuation**. Unlike new launch developments (where developers frequently absorb legal and MOT fees), subsale buyers pay scale legal fees prescribed under the **Solicitors' Remuneration Order 2023 (SRO)** and tiered stamp duty under the **Stamp Act 1949** themselves. This guide gives the full schedule, the formulas behind each line, the first-time buyer exemption, the 2026 rate for foreign buyers, and when each payment falls due. --- ## At a Glance: Subsale Property Cost Breakdown (RM500,000 vs RM1,000,000) Below is an itemized breakdown of transactional costs for purchasing a subsale property in Malaysia with a 90% loan: | Transaction Fee Item | Calculation Rate / Scale | RM500,000 House | RM1,000,000 House | | :--- | :--- | :--- | :--- | | **Down Payment (10%)** | 10% of SPA Purchase Price (not a cost, but cash you need) | RM50,000 | RM100,000 | | **SPA Legal Fee** | SRO 2023 scale (1.25% on first RM500k, 1% on next RM7m) | RM6,250 | RM11,250 | | **Loan Agreement Legal Fee** | Same scale on loan amount (90% loan) | RM5,625 | RM10,250 | | **Service Tax on Legal Fees** | 8% of both legal fees | RM950 | RM1,720 | | **MOT Stamp Duty** | Tiered (1% first 100k, 2% to 500k, 3% to 1m, 4% above) | RM9,000 | RM24,000 | | **Loan Stamp Duty (0.5%)** | 0.5% of total loan principal | RM2,250 | RM4,500 | | **Bank Valuation Fee** | Board of Valuers scale (about 0.25% on first RM100k, 0.2% after) | about RM1,050 | about RM2,050 | | **Estimated Total Closing Costs** | Excluding down payment and disbursements | **about RM25,125** (5.0%) | **about RM53,770** (5.4%) | Disbursements (land searches, bankruptcy searches, registration fees, courier and printing) add a few hundred to about RM2,000 depending on the firm and the land office. Legal fees here are Peninsular Malaysia's scale; Sabah and Sarawak set their own. (Sources: Solicitors' Remuneration Order 2023, in force 15 July 2023; Stamp Act 1949, First Schedule items 27(a) and 32(a), 4% tier from 1 July 2019; service tax 8% from 1 March 2024; checked 30 Sep 2026. Valuation scale as summarised from the Board of Valuers, Appraisers, Estate Agents and Property Managers (LPPEH); the Board's fee page was unavailable on 30 Sep 2026, so confirm the quote with your valuer.) --- ## 1. Scale Legal Fee Formula (Solicitors' Remuneration Order) Lawyers handling subsale property transactions in Peninsular Malaysia charge the fee set by the SRO 2023 scale: `Legal fee = 1.25% x first RM500,000 + 1% x next RM7,000,000 (minimum fee RM500)` This is the Solicitors' Remuneration Order 2023 scale, in force since 15 July 2023. Above RM7,500,000 the fee is negotiable but capped at 1% of the excess. The same scale applies to the SPA (First Schedule, Table A) and to the loan agreement (Third Schedule, Table A), so a buyer with a loan pays two scale fees, often to two different law firms. A lawyer may give a discount of up to 25% on these Table A fees. ### Worked Example (RM750,000 Subsale Property) - **First RM500,000 at 1.25%:** RM500,000 x 1.25% = RM6,250. - **Remaining RM250,000 at 1.0%:** RM250,000 x 1.0% = RM2,500. - **Total Basic Legal Fee:** RM6,250 + RM2,500 = **RM8,750**, plus 8% service tax (RM700) = **RM9,450**. Our [legal fees calculator](/tools/legal-fees-calculator) runs this for any price. --- ## 2. MOT Stamp Duty Tiered Schedule (Stamp Act 1949) Stamp duty on the Memorandum of Transfer (Form 14A) or Deed of Assignment is calculated on a progressive scale on the **higher of the price or the market value**: - **First RM100,000:** **1.0%** (max RM1,000) - **RM100,001 to RM500,000:** **2.0%** (max RM8,000) - **RM500,001 to RM1,000,000:** **3.0%** (max RM15,000) - **Above RM1,000,000:** **4.0%** **Foreign buyers:** From 1 January 2026, a transfer of residential property to a non-citizen who is not a permanent resident, or to a foreign company, is charged a flat **8%** of the price or market value, whichever is higher, under the new item 32(ab) inserted by the Finance Act 2025. Most states also set a minimum price of RM1 million or more for foreign purchases, so a realistic example is a RM1,000,000 condo, which attracts RM80,000 of MOT duty for a foreign buyer against RM24,000 for a Malaysian. The flat rate replaced the 4% flat rate that applied in 2024 and 2025. See our [stamp duty guide for foreign buyers](/resources/stamp-duty-foreign-buyers-malaysia-2026). **Loan agreement:** 0.5% of the loan amount (Stamp Act item 27(a)), on every housing loan regardless of price. (Sources: Stamp Act 1949, First Schedule items 27(a), 32(a) and 32(ab); Finance Act 2025 as summarised by Skrine, November 2025; checked 30 Sep 2026.) --- ## 3. First-Time Homebuyer Stamp Duty Exemption First-time Malaysian buyers get a full stamp duty exemption on both the MOT and the loan agreement for a home priced up to RM500,000: - **Who qualifies:** Malaysian citizens (the buyer and any co-buyer) who have never owned a residential property. - **Price limit:** Up to **RM500,000**. Above that there is no partial exemption. - **Deadline:** Budget 2026 extended the exemption to sale and purchase agreements executed by **31 December 2027**. - **Maximum Savings:** **RM11,250** on a RM500,000 home with a 90% loan (RM9,000 MOT plus RM2,250 loan stamp duty). (Source: Budget 2026 announcement, 10 October 2025, extending the first-time buyer exemption to 31 December 2027; checked 30 Sep 2026.) **Valuation fee requirement:** Banks require a valuation report from a registered valuer (registered with the *Lembaga Penilai, Pentaksir, Ejen Harta Tanah dan Pengurus Harta*) to confirm market value before approving the loan. If the valuation is below the agreed price, the bank lends on the lower figure and you fund the gap in cash. --- ## 4. Worked Example: A Median Selangor Subsale Home The median asking price across priced for-sale listings on SuperHomes in Selangor is **RM375,000** (n=177; SuperHomes listings, Sep 2026). Here is what buying at that price costs with a 90% loan: | Item | Not a first-time buyer | First-time buyer | | :--- | :--- | :--- | | Down payment (10%) | RM37,500 | RM37,500 | | SPA legal fee | RM4,688 | RM4,688 | | Loan legal fee (RM337,500 loan) | RM4,219 | RM4,219 | | Service tax on legal fees (8%) | RM713 | RM713 | | MOT stamp duty | RM6,500 | RM0 | | Loan stamp duty | RM1,688 | RM0 | | Valuation (approx.) | RM800 | RM800 | | **Cash needed including down payment** | **about RM56,100** | **about RM47,900** | Browse [Shah Alam property listings](/area/selangor/shah-alam) to see homes around this price. At the other end, the 4% tier matters: in [Bayan Lepas](/area/penang/bayan-lepas), where the median asking price on SuperHomes is RM1,450,000 (n=116; SuperHomes listings, Sep 2026), MOT stamp duty alone is **RM42,000**. --- ## 5. When Each Cost Is Paid | Stage | What you pay | Typical timing | | :--- | :--- | :--- | | Offer / booking | Earnest deposit (usually 2% to 3%, part of the 10%) | On signing the offer letter | | SPA signing | Balance of the 10% down payment; SPA legal fee deposit | Within about 14 days of the offer | | Stamping | MOT and loan agreement stamp duty | Instruments must be stamped within 30 days of execution; your lawyer submits for adjudication through LHDN's e-Duti Setem system | | Completion | Balance of legal fees, disbursements, service tax | Usually within 3 months of the SPA (plus a 1-month extension, with late interest) | Late stamping costs RM50 or 10% of the unpaid duty (whichever is greater) if within three months, and RM100 or 20% after that. From 1 January 2027, instruments transferring property ownership move to stamp duty self-assessment, where the payer declares and pays the duty and LHDN audits later. (Sources: Stamp Act 1949 s.47A as amended from 1 January 2025; LHDN stamp duty self-assessment system (STSDS) phase 2, 1 January 2027; checked 30 Sep 2026.) --- ## 6. Who Pays What: Buyer vs Seller | Cost | Buyer | Seller | | :--- | :--- | :--- | | SPA legal fee (own lawyer) | Yes | Yes, if separately represented | | MOT and loan stamp duty | Yes | No | | Loan legal fee and valuation | Yes | No | | Agent commission | Only if the buyer appointed the agent | Usually, up to 3% under the Board of Valuers' scale | | RPGT and retention sum | Buyer retains 3% (7% for a foreign seller) of the price and remits it to LHDN | Seller bears the RPGT | | Loan redemption and discharge (Form 16N) | No | Yes | Our [SPA agreement guide](/resources/spa-agreement-malaysia) explains how the SPA allocates these, and the [RPGT rates guide](/resources/rpgt-rates-malaysia) covers the seller's tax side. --- ## Common Mistakes When Budgeting for a Subsale Purchase 1. **Forgetting service tax.** The 8% on legal fees is on top of the scale fee. 2. **Using the price, not the valuation.** Stamp duty is charged on the higher of price or market value, and the loan is based on the lower of price or bank valuation. 3. **Assuming the first-time exemption is partial above RM500,000.** It isn't; at RM500,001 you pay full duty. 4. **Budgeting only 3%.** With two legal fees, service tax, stamp duty and valuation, 5% is the safer planning figure on a financed purchase. 5. **Foreign buyers using the Malaysian tiers.** Since 1 January 2026 it is a flat 8% on residential property. --- ## Frequently Asked Questions (FAQ) ### Q: How much does it cost to buy a subsale house in Malaysia? Budget about 5% of the price on top of the 10% down payment if you take a 90% loan. On a RM500,000 home that is about RM25,100: RM11,875 in SPA and loan legal fees, RM950 service tax, RM11,250 in stamp duty and about RM1,050 for valuation. First-time buyers at RM500,000 or less save the RM11,250 stamp duty. ### Q: How much is the lawyer fee for buying a house in Malaysia? Under the Solicitors' Remuneration Order 2023, the SPA legal fee is 1.25% of the first RM500,000 and 1% of the next RM7 million, with a RM500 minimum, plus 8% service tax. On a RM500,000 house that is RM6,250 plus RM500 tax. The loan agreement is charged separately on the same scale. ### Q: Can I negotiate lower legal fees with my conveyancing lawyer? Yes, within limits. The SRO 2023 allows a solicitor to give a discount of up to 25% on the scale fee for sale and transfer and for loan documentation under Table A. Disbursements and service tax are not discountable. ### Q: When is MOT stamp duty payable during a subsale purchase? Stamp duty must be paid within 30 days of the MOT being executed, which your lawyer arranges through LHDN's e-Duti Setem system, usually around the time the balance purchase price is paid. Late stamping costs RM50 or 10% of the duty within three months, and RM100 or 20% after. ### Q: How much is the valuation fee for a house in Malaysia? Valuation fees follow a scale set by the Board of Valuers, roughly 0.25% of the first RM100,000 and about 0.2% of the balance, so about RM1,050 on a RM500,000 home and about RM2,050 on RM1,000,000. Many banks absorb or refund it under promotional packages, so ask before paying. ### Q: Do first-time buyers pay stamp duty on a subsale house? Not if the price is RM500,000 or less, the buyer and any co-buyer are Malaysian citizens who have never owned a home, and the SPA is signed by 31 December 2027. The exemption covers both the MOT and the loan agreement, saving up to RM11,250. ### Q: Does the seller pay any legal fees during a subsale transaction? Yes. The seller pays their own lawyer for the SPA and for redeeming the existing loan and discharging the bank's charge (Form 16N), handles the RPGT return, and usually pays the agent's commission. --- ## Related Resources - **Stamp Duty Calculator:** Read our [Stamp Duty Calculator Malaysia 2026](/tools/stamp-duty-calculator). - **SPA Agreement Guide:** Explore [SPA Sale and Purchase Agreement Malaysia](/resources/spa-agreement-malaysia). - **First Buyer Schemes:** Learn about [First Time Buyer Schemes Malaysia](/resources/first-time-buyer-schemes-malaysia-2026). - **Stamp Duty in Depth:** See [Stamp Duty Malaysia 2026](/resources/stamp-duty-malaysia-2026).