SRO Part 2

Rules under 3rd Schedule

*Page331ofLPA

Islamic Banking / Islamic Financing Loan

Inrespectofthepreparationofsecuritydocumentsand/oragreementsforbusinessasdefinedinthe
IslamicBankingAct1983
The scale fee specified for the principal Example:
instrument ordocumentshallbebasedonthe
principal amount provided or financed by the PPA: RM765,000 x 0.7% + 450= RM5805
financier (subject to a minimum fee of
RM300/);
The fee for each of the subsidiary or other
instrument preparedinrelationtothefinancing PSA: RM5805 x 10% = RM580.50
transaction (made according to the Syariah
principles),tosecure therepaymentofmonies
provided or financed, shall be 10% of the
applicablescalefee,subjecttoaminimumfee
ofRM200/andamaximumfeeofRM1,000/
foreachsubsidiaryorotherinstrument.
Facility RM90,000

Preparation. Of Banks Property Sale Agreement @ 1% =

RM900/-
Deed of Assignment (Property w/o IDT) @10% of above scale fee =
90/-
Banks Property Purchase Agreement @ 10% of facility scale fee =
90/-

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 Fourth Schedule [Paragraph 2(d)]
*Page332ofLPA

Discharge of Charge & Deed of Reassignment

DischargeofCharge
FirstTitle RM300/
Eachadditionaltitleinthesameinstrument RM50/

DeedofReassignment
Firstproperty RM300.
Eachadditionalpropertyinthesamedeed RM50/
IftheDeedofReassignmentincludesaRevocationofPowerofAttorney,anadditionalfeeof
RM100/shallbepayabletothesolicitor.

Rules under the Fourth Schedule

1.ThescalefeesinthisScheduleshallbepayableonlytothesolicitorhavingtheconductofand
completingthetransaction.

2.InacasewhereaDischargeofchargeoradeedofreassignmentis

(a) prepared by the financier's/chargee's solicitor and the signature of the attorney for
the financier/chargee is attested by the said solicitor, and the instrument is thereafter
forwarded to the borrower's/chargor's solicitor to complete the transaction, the
remuneration of the financier's/chargee's solicitor and of the borrower's/chargor's
solicitor shall each be 50% of the applicable scale fee in this Schedule; or

(b) prepared by the borrower's/chargor's solicitor and the instrument is forwarded to

the financier's/chargee's solicitor for attestation of the signature of the attorney for the
financier/chargee only, the solicitor for the financier/chargee may only charge a fee for
attestation as specified in the Fifth Schedule, and the remuneration of the
borrower's/chargor's solicitor shall be RM300/-.

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 Fifth Schedule [Paragraph 2(e)]
*Page333ofLPA

Preparing, Filing or Witnessing Miscellaneous Documents

(a) Forwitnessingexecutionofadocument RM50/forfirst
RM10/foreachsubsequentcopy

(b) For witnessing execution of a document RM100/forfirst

andgivinganattestationcertificate. RM10/foreachsubsequentcopy

(c) Forms under sections 108113 of the RM300/perset

CompaniesAct1965[Act125]

(d) Real Property Gains Tax form 1 RM300/perform

(CKHT1)

(e) RealPropertyGainsTaxform2 RM200/perform

(CKHT2)

(f) ApplicationtoStateAuthority/Statutory
Bodyfor consent to
transfer/lease/charge
(i) for properties where the RM200/perapplication
considerationortheloansum,asthecase
maybe,isRM45,000/orbelow
(ii) for properties where the RM300/peraplication
considerationortheloansum,asthecase
maybe,isinexcessofRM45,000/

(g) Filing of any other form with an RM100/perform

appropriateauthority

(h) Entryofcaveat pursuanttoanoptionto RM200/forthefirsttitle

purchase,saleandpurchaseagreementor RM50/foreachsubsequenttitle
loantransaction

(i) WithdrawalofCaveat RM150/forthefirsttitle

RM50/foreachsubsequenttitle

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 Rules under the Fifth Schedule
*Page334

1.Asolicitorisnotentitledtowitnessingorattestationfee

a)inacasewherehehasprepared,settledorapprovedthedocumentconcernedandheisbeing
remuneratedaccordingtothisOrder;or
(b)inacasewhereheactsforonepartyinatransactionandwitnessesoratteststhesignatureof
anotherpartyforwhomheisnotacting.

2. If the witnessing or attesting solicitor is asked to explain or advise on the contents of any
documentnotpreparedbyhim,heshallbeentitledtoremunerationinaccordancewithrule1ofthe
SixthSchedule.

SuitbyAbdulRazakbinHashimvBarMalaysia
AnybreachoftheSROwillamounttoamisconductforwhichdisciplinaryactionmayfollow.

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 Tutorial Questions
Question3(HidayasGroup)
GLHboughtapropertyLot123HSD456,DaerahMelakaTengahfromORPforRM850,000/
ORPhadchargedthepropertytoChargeeBank.ThereisanoutstandingsumofRM250,000/.GLH
hasobtainedahousingloanofRM765,000/fromPopularBankBhd.(PBB).Alllegalfeesareto
bebornebyGLH.ORPisnotrepresented.
YouarerequiredtopreparetheBillsforyourprofessionalchargesanddisbursementsfor:

a. thetransfer

b. discharge

c. charge

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a)SimpleformulaForanypropertyworthRM150000/t0RM1mthefollowingsimpleformula
maybeusedforcomputingthescalefee:
legal fee = price x 0.7% +RM450/ |1,500 x 0.7 = 1,050. 1,500 1050 = 450|
100

Particulars Charges 6%GST Total

Professionalcharges RM6400
RM850,000
(purchase price) x
0.7%+RM450
=RM6400 RMxx
CKHT2 RMxx
Entry and
withdrawal of
privatecaveat

Disbursement
a)Titlesearch RMxx RMxx
b) Bankruptcy and RMxx RMxx
windingupsearch
c) Registration fee RMxx RMxx
for entry of private
caveat RMxx RMxx
d) Registration fee
for withdrawal of
privatecaveat RMxx RMxx
e) Stamp duty on
SPA(5sets) RMxx RMxx
f) Stamp duty on RMxx RMxx
MOT RMxx RMxx
g)BorangI
h)Miscellaneous

RMxx

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b)Discharge

Particulars Charges 6%GST Total

Dischargeofcharge RM300 RM300

Disbursement
a) Stamping of RMxx RMxx
dischargeofcharge
b) Registration fees RMxx RMxx
for discharge of
charge RM50 RM50
c)Miscellaneous

RMxx

c)Charge

Particulars Charges 6%GST Total

Facility agreement (loan RM5805 RM5805
charges x 0.7% +
RM450)
Entry and withdrawal of RMxx RMxx
privatecaveat
Disbursement
a)Search
Titlesearch RMxx RMxx
Bankruptcy RMxx RMxx
search/company
windingup
b)Stampingon RMxx RMxx
Facilityagreement RMxx RMxx
Charge/Annexure

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Question 5 (Tutorial 7)
Based on the facts in Q.3, calculate the legal fees for costs and disbursement under an Islamic
Financing Loan, (i) with title, (ii) without title.
Based on 3rd & 4th schedule of Solicitors Remuneration Order 2005

Islamic Loan:
PPA: RM765,000 x 0.7% + 450= RM5805
PSA: RM5805 x 10% = RM580.50
Charge / Deed of Assignment = RM5805 x 10% = RM 580.50
Discharge and Deed of Receipt and Reassignments = RM300
Developer statutory discount: 35% of 5805 = RM2031.75
RM5805 2031.75= RM 3773.25

Disbursement:
1. Stamping on
Property Sale Agreement RMxx
Property Purchase Agreement RMxx
Charge/Annexure RMxx
3 copies of PSA RMxx
2. Search(es) Land Search
Official Assignee RMxx
Registration fee charge/annexure RMxx
Entry private caveat RMxx
Withdrawal private caveat RMxx
3. Affirmation of Statutory Declaration RMxx
4. Purchase Agreement RMxx
5. Miscellaneous RMxx

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