Let more people do conveyancing to cut costs
It is not possible to buy a double storey link houses in most parts of the Klang valley or in major towns and cities unless one is willing to cough up quite a bit.
For a link house costing RM 600,00, the stamp duty and legal fees come to RM 18,500 ( RM 15,000 in stamp duty and RM 3,500 in legal fees.)
For a property costing up to RM 100,000 and 0.5 per cent for properties costing from RM 100,000 to RM 1.5 million.
There is hardly any difference in the legal work and effort involved ( including documentation in standard forms for the sale and purchase agreement, and memorandum of transfer) for the purchase of a RM 100,000 house, for which the legal fees ( excluding stamp duty) are RM 1,000 and for RM 1.5 million house, the legal fees come up to RM 7,500.
In Britain Australia and New Zealand, the legal fees for house buyers have been reduced by allowing licensed conveyancers, besides lawyers, to do legal work for house buyers.
By allowing more people to provide conveyancing ( land transactions) services, legal fees for house buyers are reduced.
M.G. KL
NST (09-Feb-2010)
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