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Solicitors Remuneration Order 2005

Preamble

In exercise of the powers conferred by subsection 113(3) of the Legal Profession Act 1976 [Act 166], the Solicitors Cost Committee makes the following order:

Order 1: Citation and commencement

  1. This order may be cited as the Solicitors’ Remuneration Order 2006.
  2. This Order comes into operation on 1 January 2006.

Order 2: Remuneration

The remuneration of a solicitor in respect of non-contentious business shall be-

  1. in respect of sales, purchases or other forms of conveyances for completing any transaction involving immovable properties-
    1. the remuneration of the solicitor having the conduct of the transaction whether acting for the vendor, purchaser, transferor or transferee shall be in accordance with the First Schedule;
    2. in the case of any transaction where no individual document of title or strata title had been issued when the transaction was first completed, the remuneration of the solicitor having the conduct of drawing up and completing the subsequent instrument of transfer shall be in accordance with rule 2 or 3 of the Sixth Schedule, as the case may be; and
    3. in the case of any transaction where there is no written sale and purchase agreement, or where the sale and purchase agreement is not prepared by the solicitor and the solicitor is not required to explain or advise the client on the terms and conditions of the agreement, or where a transfer is effected in consideration of love and affection or for no consideration or pursuant to a declaration of trust or other similar instrument, the remuneration of the solicitor having the conduct of drawing up and completing the instrument of transfer shall be in accordance with rule 4 of the Sixth Schedule;
  2. in respect of tenancies or leases, agreements for tenancies or leases and agreements reserving rent, the remuneration of the solicitor having the conduct of and completing the transaction shall be in accordance with the Second Schedule;
  3. in respect of charges or mortgages, agreements for charges or mortgages, agreements for financing under the Islamic banking business as defined in the Islamic Banking Act 1983 [Act 276], debentures by way of a fixed or floating charge, and other instruments executed by way of security-
    1. the remuneration of the solicitor having the conduct of and completing the transaction whether for the financier, chargee, borrower or chargor shall be in accordance with the Third Schedule; and
    2. in the case of any transaction where no individual document of title or strata title had been issued when the transaction referred in subparagraph (i) was first completed, the remuneration of the solicitor having the conduct of drawing up and completing the subsequent instrument of charge shall be in accordance with rule 2 or 3 of the Sixth Schedule, as the case may be;
  4. in respect of discharges of charges or deeds of reassignment pertaining to charged or assigned properties, the remuneration of the solicitor having the conduct of and completing the transaction shall be in accordance with the Fourth Schedule;
  5. in respect of preparing, filing or witnessing of miscellaneous documents, the remuneration of the solicitor having the conduct of such matters shall be in accordance with the Fifth Schedule; and
  6. in respect of non-contentious work for which there are no provision made to regulate the remuneration of a solicitor by means of a scale or fixed fee, the remuneration of the solicitor shall be in accordance with rule 1 of the Sixth Schedule and in respect of non-contentious work which is not completed, the remuneration of the solicitor shall be in accordance with rule 5 of the Sixth Schedule.

Order 3: Composition of remuneration

  1. The remuneration specified in the Schedules shall not include any of the following:
    1. fees payable on the registration of documents requiring registration;
    2. stamp duties or fees;
    3. counsel’s fees, auctioneer’s or valuer’s fees;
    4. travelling or accommodation expenses;
    5. fees paid on searches;
    6. costs of extracts from any register or record;
    7. other disbursements reasonably and properly paid and incurred (which shall be itemized in any bill of costs rendered by the solicitor to the client);
    8. the cost of any extra work;
    9. fees relating to any business of a contentious nature;
    10. fees relating to any proceeding in any court; and
    11. miscellaneous expenses not exceeding RM50.
  2. Notwithstanding subparagraph (1), the remuneration specified in the Schedules shall include-
    1. allowances for the time of the solicitor and his clerk and all usual and necessary attendances; and
    2. charges for normal copying and stationary.

Order 4: Special exertion

In respect of any non-contentious business which is required to be carried through by special exertion in an exceptionally short space of time, a solicitor may charge additional remuneration for the special exertion according to the circumstances.

Order 5: Interests

A solicitor may charge interest at eight per centum per annum on his disbursements and fees, whether fixed by scale or otherwise, from the expiration of one month from a demand made on the client and in cases where the same are payable by an infant or out of a fund not presently available, such demand may be made on the parent, guardian, trustee or other person liable.

Order 6: No Discount

There shall be no discount on fees specified in this Order.

Order 7: No acting for more than one party

  1. In any transaction referred to in the First, Second, Third and Fourth Schedules, a solicitor shall not act for more than one party in a particular transaction.
  2. Notwithstanding subparagraph (1), a solicitor may, where there is no conflict of interest, prepare, file or witness the miscellaneous documents specified in the Fifth Schedule for another party to the transaction.

Order 8: Revocation

The Solicitors' Remuneration Order 1991 [P.U. (A) 475/1991] is revoked.

Order 9: Saving Provision

Notwithstanding the coming into operation of this Order, any non-contentious business commenced before the coming into force of this Order shall be governed by the provisions of the Solicitors’ Remuneration Order 1991.




SCHEDULES