If you’re hiring a lawyer in Malaysia, you might be wondering about the costs and whether you can ask for a discount. It’s important to understand why lawyers must stick to the set fees outlined in the Solicitors’ Remuneration Order 2023 (SRO 2023) and why asking for a discount isn’t advisable.
When hiring a lawyer for conveyancing matters in Malaysia, it’s important to know that while the fees are generally fixed by the Solicitors’ Remuneration Order 2023 (SRO 2023), there is a limited scope for discounts. Here’s a simple explanation of why this rule exists and why any discounts must be within specific limits.
What is the SRO 2023?
The SRO 2023 sets out the fees that lawyers must charge for conveyancing services, which include tasks related to property transactions. These fees ensure fairness and consistency for all clients.
Can Lawyers Give Discounts on Conveyancing Fees?
- Limited Discounts Allowed: While the fees for conveyancing matters are fixed, the SRO 2023 allows for a discount of up to 25%. Lawyers can reduce their fees, but the discount cannot exceed this 25% limit.
- Professional Misconduct: If a lawyer gives a discount greater than 25%, it is considered professional misconduct. This breaches the Legal Profession Act 1976 (LPA) and can lead to serious consequences for the lawyer.
- Insurance Coverage: Lawyers have Professional Indemnity Insurance (PII) to protect them if a client makes a claim against them. If a lawyer is found guilty of misconduct by giving an excessive discount, their PII can become void. This means their insurance won’t cover them if a claim arises.
- Fair Treatment for All Clients: The limited discount rule ensures that all clients receive fair and consistent treatment. Discounts greater than 25% can create discrepancies and potential legal issues.
Consequences of Asking for Excessive Discounts
If you ask a lawyer to give a discount greater than 25% on conveyancing fees, several negative outcomes can occur:
- Risk to Lawyer’s Career: The lawyer could face disciplinary actions, including fines or suspension from practicing law.
- Loss of Insurance Coverage: The lawyer’s professional insurance may not cover any claims related to your case if they have given an excessive discount.
- Legal Complications: You might inadvertently become involved in legal issues if the lawyer’s actions are scrutinized.
Why You Shouldn’t Ask for Excessive Discounts
By asking for a discount greater than the allowed 25%, you are putting your lawyer in a difficult and unethical position. They are bound by law to adhere to the SRO 2023, and exceeding the discount limit can lead to severe consequences for both of you.
Conclusion
Conveyancing fees set by the SRO 2023 are designed to be fair and consistent, with a provision for a limited discount of up to 25%. Asking for a discount beyond this limit is against the rules and can risk the professional standing and insurance coverage of your lawyer. Trust in the fixed fee structure and the allowed discount to ensure you receive transparent and equitable legal services.