Buying Guide · Stage 3: Signing the SPA

Signing the SPA and Loan Agreement: What Each Lawyer Does and What to Bring

Signing the SPA goes smoothly once you know who represents whom: the developer’s or seller’s lawyer acts for the seller, the bank’s panel lawyer acts for the bank, and only a lawyer you appoint acts for you. The statutory new-property SPA even says each party bears its own solicitor’s costs. This guide covers how the three lawyers divide the work, whether one lawyer can act for you and the bank, what to bring on signing day, what to ask, who pays which fee, and what happens after you sign.

Three lawyers, three clientsLegal fee 1.25% on first RM500kLoan stamp duty 0.5%Loan agreement within ~30 daysVerified 2026-09-20

Ask Louis about this step Jump to contents ↓

Part ofBuying new property Buying subsale property Stage 3 · Signing the SPA

By Louis Koh · 11 years in Malaysian propertyVerified: 2026-09-207 min read📞 +60 10-906 6685

Short answer

Three lawyers can appear when you sign an SPA in Malaysia: the developer’s or seller’s lawyer acts for the seller, the bank’s panel lawyer acts for the bank, and only a lawyer you appoint acts for you. The statutory SPA says each side pays its own, so you carry your fee and the bank’s, charged under SRO 2023 at 1.25% on the first RM500,000 plus 8% SST.

Key numbers at a glance

Developer's / seller's lawyer	Acts for the seller; prepares the statutory SPA
Bank's panel lawyer	Acts for the bank; prepares the loan documents, you pay
Your own lawyer	Optional, but the only one acting for you
Legal fee scale (SRO 2023)	1.25% on the first RM500,000, then 1%, plus 8% SST
Loan agreement stamp duty	0.5% of the loan amount
Where the deposit goes	New: developer's HDA account. Subsale: lawyer's client account
Loan agreement deadline	About 30 days after the SPA (KPKT guidance)
RM500,000 subsale, RM450,000 loan	About RM24,075 in fees and duty, before disbursements

Key points in 30 seconds

The developer’s (or seller’s) lawyer acts for the seller and the bank’s lawyer acts for the bank; if you want someone checking things only for you, appoint your own lawyer, and the statutory SPA says each side pays its own.
Legal fees follow the Solicitors’ Remuneration Order 2023: 1.25% on the first RM500,000 (minimum RM500) and 1% on the next RM7 million, plus 8% SST and disbursements.
Loan agreement stamp duty is 0.5% of the loan; Malaysian first-time buyers of a home up to RM500,000 with an SPA signed in 2026–2027 are fully exempt (as at September 2026).
On a RM500,000 subsale with a RM450,000 loan, a non-first-time buyer pays about RM24,075 in legal fees (with SST) and stamp duty, before disbursements.
The new-property SPA requires a loan application within 30 days of receiving the stamped SPA, and KPKT advises signing the loan agreement within about 30 days of the SPA.

Signing the SPA: who are the lawyers and whom do they act for?

A purchase with a housing loan can involve up to three sets of lawyers. Many buyers assume ‘the lawyer’ is on their side, but each has a different client:

Who does what
Lawyer	Acts for	Main work	Who pays
Developer’s lawyer (new) / seller’s lawyer (subsale)	Developer / seller	Prepares the statutory SPA for new projects; in subsale either side’s lawyer may draft; holds the 5% stakeholder sum at VP (new)	Developer / seller (developers sometimes absorb the buyer’s SPA fee)
Buyer’s lawyer	You	Reviews the SPA, searches the title (subsale), explains terms, handles stamping and transfer, liaises with the bank’s lawyer	You
Bank’s panel lawyer	The bank	Prepares the loan agreement and the charge or deed of assignment, handles disbursement	You (the borrower)

In new launches it is common for only the developer’s lawyer to be present, with no lawyer for the buyer. Clause 33 of the statutory SPA says each party bears its own solicitor’s costs, so when a developer says ‘we pay the SPA legal fees’ it usually means its own lawyer. In subsale, the SPA is usually drafted by the buyer’s or seller’s lawyer and each side more often has its own; see subsale SPA.

Louis’s tip: ask one direct question before signing: ‘Whom do you act for?’ and ask for the answer by email. If the answer is ‘the developer’ and you have doubts about any term, paying for your own lawyer to review it is money well spent.

Can one lawyer act for me and the bank?

Yes, and it is common. If your lawyer is on your bank’s panel, the same firm can handle your SPA and the bank’s loan documents, which usually makes coordination easier. Banks only let panel firms act on their loan documents, so ask the bank for its panel list before choosing.

Using one lawyer for both buyer and seller (or developer) is a different matter. I always recommend separate lawyers, because the two sides want opposite things on price, completion dates and what happens on default.

What to watch with 'free legal fees'

Since the 2015 amendment, Regulation 8(1A) bars licensed developers from advertising an ‘offer of free legal fees’.
The Bar Council warned in February 2024 that discounts outside what the SRO allows (‘undercutting’) are misconduct, including bulk housing files done for a nominal fee or none.
SRO 2023 allows discounts of up to 25% in certain circumstances, and purchases from developers under the HDA carry lower prescribed fees. Ask for a written quotation.

The costliest mistake on signing day

It is rarely a missed clause. It is money sent to the wrong account. On a RM500,000 home the signing payment is around RM50,000. New-property money must go into the developer’s Housing Development Account and subsale money into the law firm’s client account, both of which are regulated. Pay a personal account instead and you give up that protection: getting it back means a civil suit at your cost.

Ask Louis directly
Send me the lawyer's fee quotation and the draft SPA and I will check the quote for missing items and the contract for wrong dates or unit details.

WhatsApp Louis 📞 +60 10-906 6685

Send me your lawyer's quotation and I will check every line against the SRO 2023 scale for free, with a signing-day document checklist.

What to bring on signing day

Original MyKad; foreign buyers bring their original passport. For joint purchases, every buyer attends or makes other arrangements.
The booking or earnest deposit receipt and the booking form or letter of offer to purchase.
A copy of the bank’s letter of offer, already signed and accepted.
Payment for the rest of the deposit: for new projects to the developer’s Housing Development Account (HDA account), for subsale to the lawyer’s client account. Check the account name matches the contract.
A budget for stamp duty, legal fees and disbursements (the lawyer will quote in advance).
If you will use EPF for the down payment, ask the lawyer for the SPA copies and documents you need (see EPF withdrawal for housing).
If you are overseas, arrange a power of attorney or sign where you are (see power of attorney for property).

Louis’s tip: never transfer to a personal account. New-property money goes to the developer’s HDA account; subsale money goes to the law firm’s client account. If the account name on signing day does not match the contract, stop and ask.

How signing day runs, step by step

A normal signing takes one to two hours. When I accompany clients, it usually goes like this:

Identity and unit details checkedThe lawyer checks your MyKad or passport; you check your name, IC number, address, unit number, area and price. One wrong letter in a name can cause trouble at transfer.
Key terms explainedPayment schedule, delivery or completion date, late compensation, what happens on default and the defect liability period. If anything is unclear, ask on the spot.
Signing and initiallingYou sign the execution pages and initial any amendments or each page. The lawyer signs as witness.
Payment and receiptPay the balance deposit as the lawyer directs and collect an official receipt; the booking fee paid earlier is deducted from the 10%.
Loan documentsIf the bank’s lawyer is ready, the loan agreement can be signed the same day; otherwise book another appointment within the bank’s deadline.
Copies and key datesAsk for a full stamped copy afterwards, and a written list of the next deadlines (loan agreement, progress payments or completion).

Louis’s tip: the most common mistake is reading the contract for the first time at the signing table. Ask the lawyer to email the draft a day or two before, so the appointment is for questions, not first reading.

How signing differs for new and subsale property

Signing arrangements compared
Item	New property (developer)	Subsale
Contract	Statutory Schedule G/H/I/J; terms cannot be freely changed	Drafted by the lawyers; terms are negotiable
Deposit	10% on signing (less booking fee)	Usually 10% in total: 2%–3% earnest deposit, then 7%–8% on signing
Where the money goes	Developer’s Housing Development Account (HDA account)	Lawyer’s client account, held as stakeholder
Lawyers	Often only the developer’s lawyer; buyer may appoint one	Usually one for each side
What follows	Progress payments until handover	3-month completion, plus a 1-month extension
Title checks	Project is usually developed on a master title	Buyer’s lawyer searches title, charges, caveats and restrictions

For the full subsale route see making an offer on a subsale property and subsale SPA; for new launches see booking fee for new property.

Eight questions to ask your lawyer before signing

Whom do you act for, and do you also act for the bank?
Is this a Schedule G, H, I or J SPA, or a non-statutory contract (subsale or commercial)? See Schedule G and H SPA explained.
When is the delivery or completion deadline, and how is late compensation or interest calculated?
What is due at each stage, and by when? See progressive payment schedule.
Do I qualify for the first-home stamp duty exemption, and what proof is needed?
What is the full quotation for fees, SST and disbursements, and is any discount within the SRO?
What happens if my loan is rejected or approved for less than I need?
(Subsale) Is there a restriction in interest, charge or caveat on the title, and is state consent needed? See subsale due diligence.

Who pays what? Legal fees and stamp duty worked example

Main costs for a RM500,000 subsale with a RM450,000 loan (90%), Malaysian buyer, not a first-time buyer (rules as at September 2026; Budget 2027 is expected in early October):

RM500,000 subsale: signing costs before disbursements
Item	Calculation	Amount
SPA legal fee (SRO 2023)	RM500,000 x 1.25%	RM6,250
SST on SPA fee	RM6,250 x 8%	RM500
Loan documents legal fee	RM450,000 x 1.25%	RM5,625
SST on loan fee	RM5,625 x 8%	RM450
MOT stamp duty	1% on first RM100k + 2% on next RM400k	RM9,000
Loan agreement stamp duty	RM450,000 x 0.5%	RM2,250
Total		RM24,075

If you qualify for the first-home exemption (citizen, never owned a home, price up to RM500,000, SPA signed between 1 January 2026 and 31 December 2027), the MOT and loan stamp duty fall away and the total drops to RM12,825 plus disbursements. Foreign buyers pay a flat 8% MOT stamp duty on residential property from 2026. For new projects, developers often absorb some legal fees, and HDA purchases carry lower prescribed fees. The SPA itself only attracts fixed duty of RM10 per copy. For the full method see stamp duty and legal fees or use the buying-costs calculator.

What happens after signing the SPA?

SPA stampedYour lawyer sends the SPA for stamping (fixed duty) and gives you a stamped copy.
Loan applied for or confirmedThe new-property SPA requires you to apply within 30 days of receiving the stamped SPA; if you already hold the letter of offer, this is just a hand-over to the bank’s lawyer.
Loan agreement signedKPKT’s homebuyer guide advises signing within about 30 days of the SPA (subject to the bank’s deadline). Where no title has been issued yet, the bank normally takes a deed of assignment as security.
New property: progress paymentsEach bill comes with an architect’s certificate and is payable within 30 days until handover; see progressive payment schedule.
Subsale: completion periodUsually 3 months plus a 1-month extension with late interest, during which redemption, state consent and transfer are handled; see subsale transfer process.
Transfer and charge perfectedThe deal is only complete once the MOT and charge are registered at the land office; see caveats and perfection.

Singaporean and other foreign buyers add state consent and levy steps; see the guide for Singaporean buyers and foreigner paperwork and costs.

Frequently asked questions

Do I need my own lawyer when buying a new property in Malaysia?

It is not a legal requirement, but the developer’s lawyer acts for the developer. Clause 33 of the statutory SPA says each party bears its own solicitor’s costs. The terms are prescribed, yet unit details, side letters and supplementary agreements can still cause problems, so a review by your own lawyer is worthwhile when in doubt.

Can my lawyer also act for the bank?

Yes, as long as the lawyer is on the lending bank’s panel. Many buyers use one firm this way because it makes coordination simpler. Ask the bank for its panel list before appointing anyone, and get a written quotation covering both the SPA and the loan documents.

How are legal fees calculated for an SPA in Malaysia?

Under the Solicitors’ Remuneration Order 2023, in force since 15 July 2023: 1.25% on the first RM500,000 (minimum RM500) and 1% on the next RM7 million. The SPA and the loan documents are charged separately, plus 8% SST and disbursements. Discounts of up to 25% are allowed in certain circumstances.

What should I bring when signing the SPA?

Your original MyKad or passport, the booking or deposit receipt, the booking form or offer letter, a copy of the bank’s letter of offer and the payment for the balance deposit. Pay new-property money to the developer’s HDA account and subsale money to the lawyer’s client account, after checking the account name.

How soon after the SPA must I sign the loan agreement?

KPKT’s homebuyer guide advises signing the loan agreement within about 30 days of the SPA, subject to the deadline in the bank’s letter of offer. The new-property SPA also requires a loan application within 30 days of receiving the stamped SPA, so it is best to have the letter of offer before you sign.

Is 'free legal fees' from a developer really free?

Usually it means the developer pays its own lawyer to prepare the SPA, and that lawyer acts for the developer. Since 2015 developers may not advertise free legal fees, and the Bar Council has warned that discounts outside the SRO are misconduct. Ask for a written breakdown of which fees are paid by whom.

Sources & verification

Verified: 2026-09-20. This guide is general information, not legal, tax or financial advice. Rules and rates change — confirm in writing with your lawyer, bank or the relevant authority before you sign.

Stage 3

More in this stage

Stamp Duty Malaysia 2026 and Legal Fees: How to Calculate (with Examples)Stamp duty Malaysia 2026: MOT rates 1%–4%, 0.5% on loans, 8% for foreigners, first homes to RM500k exempt, plus SRO 2023 legal fees and worked examples.Schedule H SPA, Plus G, I and J: The New Property SPA in Malaysia ExplainedSchedule H SPA Malaysia explained with G, I and J: 24/36-month delivery, LAD at 10% a year, 24-month DLP, strata title with VP, plus a pre-signing checklist.Progressive Payment Schedule Malaysia: Every Stage, and the Interest You PayProgressive payment schedule in Malaysia: 10% on signing, 17.5% at VP, 5% held by the lawyer. Each Schedule H stage and a worked interest example.Subsale SPA in Malaysia: 3+1 Month Completion, Differential Sum & Key ClausesA subsale SPA in Malaysia usually means a 10% deposit and 3+1 months to complete, with late interest often 8%. Worked examples, key clauses and default rules.Power of Attorney for Property Transactions in Malaysia: Signing from OverseasUsing a power of attorney for Malaysia property? It must be stamped and registered at the High Court and can be signed abroad before a notary. 6 safety tips.

← PreviousProgressive Payment Schedule Malaysia: Every Stage, and the Interest You Pay Next →Subsale SPA in Malaysia: 3+1 Month Completion, Differential Sum & Key Clauses

Louis Koh

11 years in Malaysian property · Johor Bahru & Kuala Lumpur · English & 中文

I help local buyers and cross-border buyers from Singapore with new and subsale property. Every figure in these guides is sourced; when a rule changes, I update the page and date it.

💬 Contact Louis

Stuck on this step? Ask me directly

Send me your situation — new or subsale, budget, state, and where you are in the process — and I will tell you what to do next and what to watch for.