First Schedule SRO 2023: Sale and Transfer Fees for Malaysian Property Transactions

A solicitor acts for a purchaser in a transaction where the consideration is RM10 million. The First Schedule Table A says the fee on the excess exceeding RM7,500,000 is “subject to negotiation on excess but shall not exceed 1% of such excess.”

The question Pn Norhayati Mohamed posed at the CPD talk: can the solicitor charge 0% on that excess?

The answer is less obvious than it looks — and it is one of several First Schedule questions that trip up even experienced conveyancing lawyers. This article walks through the full First Schedule: the scale fees, the rules, and the practical scenarios that test whether you are applying them correctly.

For the broader framework — what the SRO 2023 is, how the six schedules fit together, and the compliance consequences — read the overview first.

What the First Schedule Covers

Order 2(a) of SRO 2023 says: remuneration for sale, purchase, or other forms of conveyance for completing any transaction involving immovable property shall be in accordance with the First Schedule.

This covers the core of conveyancing work — whether you are acting for vendor, purchaser, transferor, or transferee.

But it comes with two important carve-outs:

Order 2(a)(ii) — Where no title was issued when the transaction was first completed, remuneration for having conduct of the subsequent transfer (after title issues) is governed by Rules 2 and 3 of the Sixth Schedule, not the First Schedule.

Order 2(a)(iii) — Where there is no written SPA, or the SPA was not prepared by the solicitor, or the transfer is for love and affection, or for no consideration, or pursuant to a trust instrument, or from an estate to beneficiaries — remuneration is governed by Rule 4 of the Sixth Schedule.

These carve-outs matter. A solicitor who charges the full First Schedule scale fee on a love-and-affection transfer between siblings is overcharging. The correct basis is the Sixth Schedule’s seven-factor “fair and reasonable” test, using the First Schedule as guidance.

Table A — The Scale Fees

Consideration or adjudicated value	Scale fee
First RM500,000	1.25% (minimum RM500)
Next RM7,000,000	1%
Exceeding RM7,500,000	Subject to negotiation but shall not exceed 1%

Discount: Up to 25% on Table A fees only (Order 5). No discount on Table B. This is a change from the previous SRO, which permitted discount on the First Schedule generally. SRO 2023 narrows it to Table A. If your fee calculator does not distinguish between Table A and Table B, it is applying discounts where they are not permitted.

Use the SRO 2023 fee calculator to compute Table A fees instantly.

Purchase Price or Adjudicated Value?

This was Decode 15 at the CPD talk, and it is a question that comes up in almost every sub-sale.

Rule 1 of the First Schedule gives the solicitor discretion to charge the scale fee based on either the consideration (the purchase price in the SPA) or the adjudicated value (the value determined by the stamp office for stamp duty purposes).

Why does this matter? Because the adjudicated value can be higher than the purchase price — the stamp office may assess the market value as exceeding the agreed consideration. In that case, the solicitor has the discretion to base the fee on the higher adjudicated value.

In practice, most solicitors charge based on the purchase price. But the discretion exists, and for transactions where the adjudicated value is significantly higher, it is a legitimate basis for the fee.

Can You Charge 0% on the Excess Above RM7.5 Million?

Back to the opening question. The Table A language says the fee on the excess is “subject to negotiation on excess but shall not exceed 1% of such excess.”

The words “subject to negotiation” imply a range. The ceiling is 1%. But is the floor 0%?

The answer: no — or at least, not straightforwardly. “Subject to negotiation” means the fee is to be agreed between solicitor and client, but it does not mean the solicitor can or should waive the fee entirely. A fee of 0% on a RM2.5 million excess would effectively be a waiver of fees on that portion, which engages the waiver rules under BC Circular 295/2023 — a waiver must be bona fide, full (not partial), and not a device for a discount.

The practical approach: negotiate a rate between the minimum that is fair and reasonable (using the Sixth Schedule Rule 1 factors as a cross-check) and the 1% ceiling.

The Six Rules

Rule 1 — One party only. The solicitor shall only act for one party. But this does not prevent the solicitor from also acting for the same client in related transactions under other schedules — see Rules 2 and 3.

Rule 2 — Subsequent sale. A solicitor acting for a purchaser may also act for the same purchaser in a subsequent sale of the same property. This is a practical rule for clients who buy and flip — the same solicitor can handle both transactions without conflict.

Rule 3 — Financing. A solicitor acting for the purchaser may also act for the purchaser’s financier in the financing transaction. This is the standard arrangement in most Malaysian conveyancing practices — the purchaser’s solicitor handles both the SPA side and the loan documentation under the Third Schedule.

Rule 4 — Transfers of charges and leases. First Schedule fees also apply to transfer of charges and leases. This extends the scale beyond straightforward sale-and-purchase to cover reassignments and lease transfers.

Rule 5 — Negotiating fee (3%). In addition to the standard fee, a solicitor who arranges or procures a sale for a vendor or a purchase for a purchaser, and negotiates the price and terms, may charge an additional negotiating fee of not more than 3% of the consideration.

This rule raises a regulatory question that was discussed at length at the CPD talk: is the solicitor acting as an estate agent in contravention of the Valuers, Appraisers, Estate Agents and Property Managers Act 1981? After discussions with LPPEH (the Board of Valuers, Appraisers, Estate Agents and Property Managers), the Bar Council issued Circular 035/2024 advising members not to be gainfully employed elsewhere while practising, as this may constitute misconduct. The Rule 5 negotiating fee exists — but exercising it puts you in a regulatory grey zone.

Rule 6 — Meaning of “completion”. Remuneration under the First Schedule is conclusive of all normal and necessary attendances up to completion of the transaction, including drawing up the SPA, registration of transfer, or deed of assignment.

When is a transaction “completed”? Per BC Circular 73/2006 (still applicable): completion refers to the time of payment of the balance purchase price and/or taking of legal or vacant possession, or as stated in the agreement. Work done after completion — chasing outstanding conditions, dealing with defects, or handling post-completion disputes — is outside the scope of the First Schedule fee.

Cross-References to Other Schedules

The First Schedule does not operate in isolation. A typical sub-sale transaction may involve:

• First Schedule — the SPA and transfer fee
• Third Schedule — the loan documentation and charge
• Fourth Schedule — discharge of the vendor’s existing charge
• Fifth Schedule — CKHT forms, consent applications, caveats, statutory declarations
• Sixth Schedule — any work that falls outside the first five

Understanding where one schedule ends and another begins is the difference between a correct quotation and a compliance risk. If your firm still produces fee quotations manually, the SRO 2023 fee calculator removes the arithmetic from the equation.

The Rules Referenced in This Article

• Solicitors Remuneration Order 2023 — full text (PDF)
• SRO 2023 hub page — Malaysian Bar
• BC Circular 73/2006 — meaning of “completion of transaction”
• BC Circular 035/2024 — gainful employment while in practice