Subsale Conveyancing Lawyer for Buyers
We act for the buyer in a subsale purchase: reviewing and preparing the sale and purchase agreement, stamp duty, transfer of title, and coordination with the bank until the title is registered in your name.
For a subsale property at RM500,000 with a 90% loan, the buyer's legal fees are approximately RM6,250 for the sale and purchase agreement and RM5,625 for the loan documentation, both under the Solicitors Remuneration Order 2023, before 8% service tax. Transfer stamp duty is RM9,000. The full process normally takes three to four months from the date the sale and purchase agreement is signed.
A subsale purchase means you are buying from an existing owner rather than from a developer. It involves a title that already exists, and with it the history of the property itself: who owns it, whether it is charged, whether a third party has an interest in it, and whether there are restrictions that prevent a transfer.
The role of the buyer’s lawyer is to make sure you receive the property clean, and that your name is actually registered as the owner at the end of it.
Why a buyer needs their own lawyer
In most bank-financed purchases the bank appoints solicitors from its panel to prepare the loan documents. Those solicitors act for the bank, not for you. Their job is to make sure the bank’s interest is secured by the charge.
The sale and purchase agreement between you and the seller is a separate document. It determines when the deposit is paid, what happens if the loan is not approved, who bears outstanding taxes, and how long the seller has to deliver vacant possession. That is the document that protects you.
If the firm you choose is on your bank’s panel, both matters can be handled by the same firm. That makes coordination easier and reduces the delays that come from two firms waiting on each other.
What is checked before you sign
An official land search is the first step, and it should be done before the sale and purchase agreement is signed, not after. The search shows the registered proprietor, the tenure, the restriction in interest if any, charges, and caveats.
Several things come up regularly and affect the matter: the property is still registered in the name of someone who has died and the estate has not been administered, the individual title has not issued although the building was completed years ago, or there is a restriction requiring State Authority consent before the transfer can be registered. Each one adds time, and some add cost.
Deposit and stakeholder money
The deposit is normally 10% of the purchase price, less any earnest deposit already paid to the estate agent. It should be held as stakeholder money by the solicitors and released only when the conditions in the agreement are satisfied.
If the seller presses for the deposit to be released before those conditions are met, that is something to discuss with your lawyer before you agree.
Estimated fees by property price
The table below shows an estimate for a purchase with a bank loan at 90% margin, property in Selangor, citizen buyer. Legal fees are calculated under Solicitors Remuneration Order 2023, in force from 15 July 2023.
| Property price | Legal fees | Stamp duty | Estimated total |
|---|---|---|---|
| RM250,000 | RM6,413 | RM5,125 | RM13,538 |
| RM500,000 | RM12,825 | RM11,250 | RM26,075 |
| RM750,000 | RM18,090 | RM19,875 | RM39,965 |
| RM1,000,000 | RM23,220 | RM28,500 | RM53,720 |
| RM1,500,000 | RM33,480 | RM50,750 | RM86,230 |
What your lawyer handles
- Conducting an official land search to check the state of the title before you are bound by any agreement
- Checking whether the property carries a caveat, an undischarged charge, or a restriction in interest that has to be resolved
- Preparing or reviewing the sale and purchase agreement, including payment terms, the completion period, and what happens if either side defaults
- Ensuring the deposit is held as stakeholder money rather than released to the seller before conditions are met
- Attending to stamping of the agreement and the transfer instrument with the Inland Revenue Board
- Coordinating with the seller's solicitors and your financing bank for settlement of the balance purchase price
- Presenting the transfer at the land office and monitoring registration through to completion
- Delivering the title registered in your name, or to the bank where the property is charged
Timeline
Documents you need to prepare
- Copy of the identity card of the buyer and spouse if buying jointly
- Copy of the title, or the original sale and purchase agreement if the property is still under the developer master title
- Letter of offer from the bank, if the purchase is financed
- Proof of any earnest deposit paid to the estate agent
- EPF Account 2 statement if you intend to make a withdrawal for the purchase
- Salary slips or proof of income, for the bank
Costs people often overlook
- Official land search and bankruptcy search on the seller, usually a few hundred ringgit
- Land office registration fee for the transfer, for example RM400 in Selangor, and RM100 for registration of the charge
- Service tax of 8% on legal fees, in force since 1 March 2024
- Loan agreement stamp duty at 0.5% of the loan amount
- Quit rent and assessment to be apportioned between seller and buyer at the date of handover
- A separate legal fee for the loan documentation, calculated on the loan amount rather than the property price
When to stop and get advice first
- The agent asks you to sign a booking form with an earnest deposit before any land search has been done
- The title is still in the name of a previous owner, or of a deceased person whose estate has not been administered
- The property carries a restriction in interest requiring State Authority consent before the transfer can be registered
- The seller presses for the deposit to be released directly rather than held as stakeholder money
- There is a caveat lodged by a third party over the property
- The seller's outstanding loan is higher than the agreed sale price
Frequently asked questions
Can I use my own lawyer even though the bank has appointed one?
Yes. The bank's solicitors handle the loan documentation for the bank, while your solicitors handle the sale and purchase agreement and the transfer for you. These are different roles. If our firm is on your bank's panel, both can be handled together.
How much deposit do I need?
Normally 10% of the purchase price, less any earnest deposit already paid to the agent. This is held as stakeholder money by the solicitors until the conditions in the agreement are met.
How long does a subsale take?
Usually three to four months from the date the sale and purchase agreement is signed. It can take longer if the property requires State Authority consent, or if the individual title has not yet issued.
What happens if my loan is not approved?
A properly drafted sale and purchase agreement deals with failure to obtain financing. The consequences depend on the terms agreed, including whether the deposit is refundable. This is one reason the agreement should be reviewed before signing.
Who pays the transfer stamp duty?
The buyer. It is calculated on the scale in the Stamp Act 1949, starting at 1% for the first RM100,000.
I am a first-time buyer, do I qualify for a stamp duty exemption?
There is an exemption for first-time buyers subject to a price cap and conditions in force at the time. We check your eligibility early because it makes a large difference to the total cost.
Can I use EPF Account 2 for this purchase?
An EPF withdrawal for a house purchase is a separate process handled with EPF. We can prepare the supporting documents, but approval is at EPF's discretion.
What is the difference between the buyer's and the seller's lawyer?
The buyer's lawyer checks the title, makes sure the buyer receives the property free of encumbrances, and handles registration of the transfer. The seller's lawyer deals with discharging the existing charge and real property gains tax compliance.
Are conveyancing fees negotiable?
Conveyancing fees are set by statute under the Solicitors Remuneration Order 2023. They are not fees set by the firm.
When do I get the keys?
On the completion date, when the balance purchase price has been settled in full. This normally happens at the same time as the bank releases the loan.
Ready to start your property matter?
An initial consultation with no obligation. Tell us about your matter and we will explain what is involved and what it is likely to cost.
No. 4, Jalan Setia Impian U13/3D, Setia Impian 3, Seksyen U13, Setia Alam, 40170 Shah Alam, Selangor
014-9723468 · 014-4004293 · Monday to Friday, 9:00am to 6:00pm