🏠 Property transactions can’t do without lawyers
In Malaysia, many clients engage lawyers to draft and process documents 📄 when buying or selling property, arranging loans, or transferring ownership.
At this point, the most common question is: “Can legal fees be discounted?”
⚖️ Lawyer fees are governed by law: SRO 2023
Under the Solicitors’ Remuneration Order 2023 (SRO 2023), lawyers handling property-related matters—such as sale and purchase agreements, loan documentation, and transfer deeds—must follow the prescribed legal fee scale.
The purpose of this system is to:
✔️ Ensure fair and transparent fees
✔️ Prevent unhealthy competition among lawyers
✔️ Maintain the professional standard of legal services
✅ How much discount is allowed?
SRO 2023 clearly states:
👉 Lawyers may offer up to a 25% discount on the prescribed fees.
This means that if the lawyer agrees, clients can legally enjoy a fee reduction of up to 25%.
❌ More than 25% discount? The consequences are serious!
If a lawyer offers more than a 25% discount to attract clients, this directly breaches the Legal Profession Act 1976 (LPA 1976).
This carries 3 major risks:
1️⃣ Disciplinary action – The lawyer may face fines, suspension, or revocation of their practising certificate ⚠️.
2️⃣ Loss of PII coverage – If the fee breach is deemed improper, the lawyer’s Professional Indemnity Insurance (PII) may be invalidated, leaving no coverage for client claims.
3️⃣ Client implications – If a client knowingly requests an illegal discount, they may be summoned in future disputes or investigations, and the validity of the documents may be affected.
📌 Why is there a fee floor?
Property transactions usually involve large sums and complex procedures, requiring lawyers to carefully review documents and safeguard client interests 🏡.
If fees are slashed excessively, lawyers may have to compromise service quality, ultimately harming the client.
💡 Summary: You can negotiate, but stay legal!
✅ Lawyers can offer up to a 25% discount—this is the legal limit.
✅ Anything beyond that is illegal and far riskier than the money saved!
✅ If in doubt, request a written quotation or letter of appointment from your lawyer to understand the calculation clearly.
📝 Our recommendation
There’s nothing wrong with negotiating fees, but it’s more important to choose a professional, law-abiding, and responsible lawyer to safeguard your transaction .
📞 If you need property legal services, want to understand legal fees, or require a professional quotation, feel free to contact us 👩⚖️👨⚖️!
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