KUALA LUMPUR: The recent hike in conveyancing legal fees will lead to an overall rise in the cost of purchasing a house, according to the Real Estate and Housing Developers' Association Malaysia (Rehda).
Rehda president Datuk NK Tong said the higher fees will result in buyers having to bear the increased cost of purchasing a house, which has already been affected by other issues such as rising construction materials prices and high development costs.
"The average citizens, who are still grappling with the aftermath of Covid-19, will undoubtedly feel the impact of the increase in legal fees. At this time, industry players should strive to find ways to reduce the cost of purchasing a house in order to fulfill the housing agenda proposed by the government.
"Rehda will continue its duty to provide quality and affordable homes within the appropriate timeframe for the progress of the country and its people," he told Berita Harian.
The Malaysia Competition Commission (MyCC) previously opposed the increase in convenyancing legal fees involving property transfers while the people were still struggling with the rising cost of living.
MyCC chairman Datuk Seri Mohd Hishamudin Yunus said the action by the Bar Council contradicts competition principles, even though Section 13 of the Competition Act 2010 exempts amendment orders from using the said act.
"This increase is not the first as the Bar Council previously raised legal fees for property transfers through the Solicitors' Remuneration Order (Amendment) 2017. MyCC has also taken proactive measures to address issues related to fixed fees through professional bodies since 2013," he said.
The action by the Bar Council is also seen as contradictory to the government's efforts to assist the people in owning their own homes.
Government initiatives such as the Memorandum of Transfer and stamp duty exemptions or discounts, Real Property Gains Tax exemptions, and the Housing Loan Guarantee Scheme aim to reduce the impact of rising living costs on target groups, in addition to promoting the housing industry.