High Legal Fees and Costs Mar Joy of Owning PPR Units

I read a report on page M4 of the The Star on 15th January 2010 that says High Legal Fees and Costs Mar Joy of Owning PPR Units.

First of all, I would agree that PPR units is meant for lower income group in the country. I suppose that those units shall be units of houses that is below the RM100,000.00 or even at a price as low as a couple of ten thousands. Let us presumed that it is within the range of RM25,000.00 to RM100,000.00. Basing on the the range of price above the Legal Fees on Sale and Purchase Agreement shall not be more than RM1,000.00 as provided by the Solicitors' Remuneration Order 2006. However, if the property is governed by the Housing Development (Control and Licensing) Act 1966 [Act 118] the Solicitors Remuneration Order 2006 also provides that the following shall apply:-

a) RM250, if the consideration is RM45,000 or below;
b) 75% of the applicable scale fee specified, if the consideration is in excess of RM45,000.00 but not more than RM100,000.00;
c) 70% of the applicable scale fee specified, if the consideration is in excess of RM100,000.00 but not more than RM500,000.00; or
d) 65% of applicable scale fee specified, if the consideration is in excess of RM500,000.00

If it is a sale and purchase that is not governed by the Act 118, the scale fee shall be as follows:-

First RM150,000.00 the fees to be charged shall be 1% (subject to minimum of RM300)
For the next RM850,000.00, the fees to be charged shall be 0.7%
For the next RM2,000,000.00, the fees to be charged shall be 0.6%
For the next RM2,000,000.00, the fees to be charged shall be 0.5%
For the next RM2,500,000.00, the fees to be charged shall be 0.4%
Where the consideration or the adjudicated value is in excess of RM7,500,000.00, the fees to be charged shallnegotiable on the excess (but shall not exceed 0.4% of such excess)

Based on the above it is actually very clear, whether the legal fees charged on the PPR units are excessive or otherwise. It is easily escertaineable by the leaders who brought the issue through the press. Do some calculation you will know. The leaders will definately have friend who is lawyer. If he does not have one(amazingly), bring the matter to BAR Council, the question will be answered. Why do they HAVE TO bring the issue through the press. What is their mitive? Publicity or Politise the issue?

It is said that upon execution of the Sale and Purchase Agreement, the purchasers has to pay a sum of RM5,582.00 shall be referred to the Bar Council for clarification. One shall also look into the invioce properly. What are the charges meant for?

I am of the opinion that making a sweeping statement and put the blame on the High Legal Fees will not solve the issue. I personally had an experience with this issue when a real case of overcharged was brought to me, it was settled without any press conference or press release.