How Much Are the Legal Fees for an LPPSA Home Purchase?

When you buy a home with LPPSA financing, do not ask "how much is the legal fee?" as if there were a single figure. Your transaction usually involves at least two different pieces of legal work: the SPA (Sale and Purchase Agreement) and transfer, and the LPPSA financing documentation.

Both can be handled by the same firm if the scope of appointment allows it. For LPPSA customer financing documentation, the firm handling that workstream must meet LPPSA's registered-lawyer requirements. Even when one firm handles both, the SPA/transfer fee and the financing documentation fee should be shown as separate items.

For a transaction under Scale A of the Solicitors' Remuneration Order 2023 (SRO 2023), the basic scale is 1.25% on the first RM500,000 and 1% on the next RM7,000,000, subject to a minimum fee and the rules for each document. The SRO 2023 calculations in this article apply to transactions in Peninsular Malaysia; Sabah and Sarawak have separate rules on solicitors' remuneration.

The most important point: LPPSA can include the legal fees for the financing documentation in the financing it offers, but the SPA and transfer fees are not part of that financed legal cost.

"The right question is not 'how much is the LPPSA legal fee', but 'how much is the SPA fee, how much is the financing documentation fee, and what else do I need to prepare'. One rough figure often hides two different workstreams," said Akmal Saufi Mohamed Khaled, lawyer and principal of ASCOLAW (Messrs Akmal Saufi & Co).

What does "LPPSA legal fee" actually mean?

The term is often used for three different things:

• the professional fee for the SPA and transfer;

• the professional fee for the LPPSA financing and security documents; and

• other amounts in the quotation, such as service tax, searches, registration fees and disbursements.

How the SPA fee and the financing fee are calculated

SRO 2023 came into force on 15 July 2023. Its First Schedule governs fees for the sale, purchase and transfer of immovable property. Its Third Schedule governs fees for charges, financing agreements and security instruments.

SPA and transfer fee

For a normal transaction under Scale A of the First Schedule, the basic fee is:

LPPSA financing documentation fee

For financing transactions under Scale A of the Third Schedule, the basic scale is also 1.25% on the first RM500,000 and 1% on the next RM7,000,000. The difference is the basis of calculation: the amount secured or financed. If the home costs RM500,000 but the LPPSA financing is RM450,000, the financing documentation fee is calculated on RM450,000, not RM500,000.

Example calculation for a typical subsale

This example shows the basic Scale A fees. It is not a quotation and does not include service tax, disbursements, subsidiary documents, consent or additional work.

Assume a home price of RM500,000 and LPPSA financing of RM450,000.

For law firms registered for service tax, legal services are taxable at the current rate of 8%. In this example, with no discount, 8% of RM11,875 is RM950, so the basic scale fees with service tax come to RM12,825. That still excludes disbursements, registration and additional work.

Do not use this example if your purchase is under the developer (Housing Development Act) scale, involves more than one property or has a different financing structure.

Developer purchases can use a different scale

Where the transaction is governed by the Housing Development (Control and Licensing) Act 1966 or its subsidiary legislation, Scale B of the First Schedule and Scale B of the Third Schedule apply. In general, Scale B is a percentage of the Scale A fee:

SRO 2023 does not allow a discount on Scale B fees. For Scale A of the First and Third Schedules, a discount of up to 25% may be given at the firm's discretion.

Which legal costs can be included in LPPSA financing?

LPPSA's official FAQ draws a clear line. LPPSA can finance the legal fees for preparing the financing documentation only, and include them in the financing amount offered.

The FAQ lists what is not included: SPA fees, transfer costs (Memorandum of Transfer), caveat, stamp duty and statutory declarations. You need to plan to pay those separately.

Financing the LPPSA documentation fee is optional. If you want to apply for it:

1. get a quotation from your lawyer;

2. use LPPSA's prescribed legal fee quotation format; and

3. submit it with your application according to the checklist for your financing type.

Approval of this cost does not mean LPPSA pays your legal fees for free. The approved amount becomes part of your financing and is repaid under your financing terms.

What if the estimate differs from the actual fee?

LPPSA's FAQ covers two situations:

• if the estimate you applied for is lower than the actual legal fee, you must settle the difference first; and

• if the estimate is higher than the actual fee, the difference is treated as an overpayment and returned to you.

Are LPPSA financing documents subject to stamp duty?

According to LPPSA, documents for public-sector housing financing under LPPSA are exempt from stamp duty, but the exemption still has to be endorsed. LPPSA's FAQ refers to dealing with LHDN (the Inland Revenue Board) for endorsement of the stamp duty exemption.

The exemption does not mean every document in your purchase is duty-free. The SPA, the transfer and other documents must be assessed separately under the Stamp Act 1949 and any exemption that currently applies to you. Do not rely on an old promotion or campaign.

Why two purchases at the same price can have different legal fees

• The financing amount differs. The financing fee is based on the amount financed.

• One is a subsale, the other a developer purchase. Scale A and Scale B can produce different fees.

• The title status differs. If individual or strata title has been issued, the security is usually a registered charge. If not, an assignment and supporting documents may be used.

• Consent or restrictions in interest. A leasehold title or a title with restrictions may need a consent application and authority fees.

• The number of documents or securities. Joint borrowers, guarantors or third-party charges can mean extra work and fees.

• The seller's existing loan. If the subsale home is still charged to the seller's bank, redemption and discharge must be coordinated.

• Perfection after title is issued. If the purchase happens before individual or strata title is issued, a future perfection of transfer or charge may be a separate matter.

Legal fees, disbursements and third-party payments

SRO 2023 states that the scheduled fees do not include items such as registration fees, stamp duty, search fees, extracts of records, reasonable expenses and the cost of additional work. A transparent quotation should separate:

• the professional fee for the SPA and transfer;

• the professional fee for the LPPSA financing documentation;

• service tax, if applicable;

• title and other searches;

• registration fees for the transfer and charge;

• consent or authority fees;

• disbursements; and

• additional work not covered by the usual scope.

What to confirm in the quotation

• Does the quotation cover the SPA, the LPPSA documentation or both?

• What price and financing amount were used?

• Is the fee calculated under Scale A or Scale B of SRO 2023?

• Is service tax shown separately?

• Which disbursements and registration fees are included?

• Is consent, redemption or any additional document needed?

• Is a future perfection of transfer or charge included?

• How much can be applied for as the LPPSA financing documentation cost?

• How much do you need to pay yourself?

• What could cause the quotation to change?

Can the lawyer quote before LPPSA approval?

Yes, if there is enough information about the transaction. If the final financing amount or legal structure changes, the quotation may need to be adjusted. Tell the firm whether the financing amount is proposed or already approved.

How ASCOLAW can help

ASCOLAW, operated by Messrs Akmal Saufi & Co, can identify the legal scopes you need and prepare a quotation based on the actual property and financing structure, subject to conflict checks and acceptance of the matter. Messrs Akmal Saufi & Co is listed in LPPSA's Registered Lawyers directory. The firm can review the approval letter, prepare the financing documentation and the charge or assignment, liaise with LPPSA and the other parties, and manage the process towards release of the financing.

Want a legal fee quotation for your LPPSA home? Fill in the ASCOLAW enquiry form below with the purchase price, the proposed or approved LPPSA financing amount, the property address, a copy of the title if available, whether the seller has an existing loan, and whether you need the SPA, the LPPSA financing documentation or both.

Frequently asked questions

Does LPPSA pay all the legal fees for buying a home?

No. LPPSA can only include the legal costs of the financing documentation in the financing, subject to your application and approval. SPA and transfer fees are not included.

Can I pay the LPPSA documentation fee myself?

Yes. LPPSA's FAQ states that financing the legal fees is an option for the applicant.

Is the LPPSA documentation fee calculated on the house price?

No. The financing fee is calculated on the amount secured or financed. The SPA fee uses the price or value of the transaction under SRO 2023.

Are LPPSA financing documents exempt from stamp duty?

According to LPPSA, public-sector housing financing documents under LPPSA are exempt, but the lawyer must obtain the exemption endorsement from LHDN's stamp office.

Can a lawyer give a discount?

SRO 2023 allows a discount of up to 25% on Scale A of the First and Third Schedules, at the firm's discretion. No discount is allowed on Scale B.

If one firm handles both the SPA and LPPSA, is there only one fee?

No. One firm can coordinate both, but the SPA/transfer work and the financing documentation are two separate scopes, each calculated on its own basis.

This article is general information only and is not a quotation or legal or financial advice for a particular transaction. The discussion of SRO 2023 applies to transactions in Peninsular Malaysia; Sabah and Sarawak have separate rules on solicitors' remuneration. SRO rules, tax rates, LPPSA procedures, exemptions and transaction facts can change, so check the current documents and rules before deciding.

Related guides

• Legal Fees for Buying and Selling a House in Malaysia (2026 Guide)

• Housing Loan & Loan Agreement Legal Fees in Malaysia

• Conveyancing Lawyer in Malaysia: What They Do, Fees & How to Appoint One

• Perfection of Transfer