PETALING JAYA: A retired judge has expressed his disappointment in a recent amendment to the law which has raised legal fees payable in transactions involving the sale and purchase of properties and related work.
“Protecting conveyancing fees is a blatant abuse of social justice and the free market,” the ex-judge said, adding that most of the work is in “standard form”.
“I do not think the UK or other countries have such a protection policy which provides for a cut of between one and two per cent of purchase price as well as for charge documents,” he said.
The former judge said he fully supported the Malaysia Competition Commission’s (MyCC) objection to the fee hike . He called upon MyCC or other interested individuals to file a case to strike down the protective clause.
On July 17, MyCC said it was concerned by amendments introduced by the Solicitors’ Remuneration Order 2023 (SRO) which increased legal fees payable for conveyancing matters.
MyCC chairman Hishamudin Yunus, himself a retired Court of Appeal judge, said the fee increase was “untimely” given that everyone was presently struggling to cope with the cost of living.
Conveyancing lawyer Junaidi Mohamad took the opposite view, saying the new fee scale prescribed by the SRO was entirely justified.
He said lawyers are duty bound to make sure a sale and purchase transaction proceeds smoothly.
“For most of us who don’t go to court, this is the job we do to make a living,” said Junaidi.
The lawyer said an average transaction can last up to six months and the processes involved are varied and time-consuming.
“(Previously) we used to collect a fee of 1% of the sale price, compared to real estate agents who can ask for up to 3% (from buyers),” he added.
Junaidi said the fee increase will especially benefit small legal firms who are struggling to contain costs and will allow them to hire more staff. - FMT
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