Is it normal for an agent to ask the tenant to engage a lawyer for the tenancy agreement?
It is normal when the lawyer prepares or reviews the actual agreement for a genuine fee, and abnormal when the "lawyer" charge is a vague add-on with no named firm, no draft shown, and no itemised scope. The test is whether legal work is actually being done and who benefits.
SPEEDHOME platform records show that the most common tenant dispute on tenancy-agreement costs is a vague "lawyer fee" with no named firm and no itemised quote — the tell is the missing paperwork, not the law itself.
In the Malaysian rental market, the party who prepares the tenancy agreement typically bears the drafting cost, and each side is usually free to get their own legal review if they want it. In the Malaysian market an agent's commission is typically 1–1.25 months' rent under REN/MIEA guidance — a separate "lawyer fee" on top is not part of that scope, and an agent conflating the two is the pattern to watch for. The confusion starts because the word "lawyer" gets used for three very different things: the person who drafts the agreement, the person who stamps it, and the person who gives independent advice. An honest agent will tell you which of these they mean. A vague "you must use my lawyer" demand without a draft, a quote, or a named firm is a warning sign, not a requirement.
Reviewed by: Malaysian legal counsel, Advocate & Solicitor (High Court of Malaya). Last reviewed: 23 June 2026. datePublished: 2026-06-23. dateModified: 2026-06-23. This page covers general legal/process information for Malaysian residential tenancies and is not a substitute for advice on your specific agreement.
The detail: when it is normal and when it is a red flag
The demand is normal where real legal work is being done for a stated fee by a named firm; it is a red flag where the charge is mandatory, unspecified, or routed to a party the agent will not name.
Three legitimate patterns exist in the market. First, the landlord's lawyer drafts the agreement and the landlord pays that drafting cost — common for higher-rent or longer-term tenancies. Second, either party may choose to hire their own lawyer to review the draft before signing; this is optional, not compulsory. Third, the agreement still has to be stamped through LHDN's e-Duti Setem on MyTax, and stamp duty follows the Finance Act 2024 scale of RM1 / RM3 / RM5 / RM7 per RM250 of annual rent by lease duration, payable by the party the agreement assigns it to. None of these requires the tenant to use the agent's chosen lawyer.
The red flags are when an agent insists the tenant must pay a "lawyer fee" but cannot show a draft agreement, will not name the firm or person doing the work, cannot give an itemised quote, or routes the payment to the agent's personal account rather than a law firm's client account. A charge that does not correspond to any document, stamping, or advice is not a legal fee — it is an undisclosed markup, and you are entitled to decline it.
For the actual stamping step and how to do it yourself, see how to stamp a tenancy agreement at LHDN yourself via e-Duti Setem. For what a tenancy agreement should contain before you sign it, see the must-knows about tenancy agreements, and for the wider cost picture, the tenancy agreement charges in Malaysia breakdown.
Who usually pays for what
Drafting cost normally follows whoever instructed the draft; stamp duty follows the agreement; optional legal review is paid by whoever wants it. There is no rule forcing the tenant to pay the agent's unnamed lawyer.
| Cost item | Who usually bears it | Is it compulsory for the tenant? | What to insist on |
|---|---|---|---|
| Drafting the tenancy agreement | The party who instructs the draft (often the landlord) | No — only if the tenant chose to have it drafted | A named law firm, a shown draft, an itemised fee |
| Independent legal review of the draft | Whoever wants the review | No — optional, at either side's discretion | A separate engagement letter with your own lawyer |
| Stamp duty (e-Duti Setem on MyTax) | As assigned by the agreement | Yes — somebody must stamp it; the agreement sets who | The stamped copy retained before move-in |
| Vague "lawyer fee" with no draft or firm named | Should not be paid | No | Decline and ask for the draft and the firm's name |
| Agent's commission for finding the tenant | Typically the landlord | No | A written agreement stating who pays commission |
The one figure you can verify yourself is stamp duty, because it follows a published scale. Specific legal-fee schedules are not fixed by law and vary by firm and matter, so treat any agent who quotes a "standard legal fee" as if it were statutory as unreliable — confirm the actual quote directly with the named firm.
What to ask the agent in writing (copy-paste template)
Send these lines by email or WhatsApp so there is a written record; a refusal to answer in writing is itself a signal. Keeping the request in writing turns a vague verbal demand into something you can show a regulator, the named firm, or the tribunal.
- "Please share the draft tenancy agreement in PDF, the name and law-firm registration of the lawyer preparing it, and an itemised quote on the firm's letterhead."
- "Please confirm in writing whether the legal fee is compulsory or optional, and which clause of the agreement assigns it to the tenant."
- "Please confirm whether stamp duty is included in that fee or paid separately through LHDN e-Duti Setem on MyTax, and who is named in the agreement as the party liable for stamp duty."
- "Please state the firm's client account name and number for payment; I will not pay any 'legal fee' into a personal account."
- "Please reply within 3 working days; if I do not receive the above, I will proceed to stamp the agreement myself and decline the unspecified charge."
A refusal to put any of the above in writing — or a redirect to "trust me, it's standard" — is the same red flag as no draft and no firm. Stop and verify before paying.
Already paid? Here's what to do
Refund route is written demand first, named firm second, then LHDN and tribunal. If you have already handed over money for a vague "lawyer fee", you still have realistic remedy paths — the diagnosis matters as much as the prevention.
- Written demand for refund. Send a dated email/letter to the agent requesting a full refund within 7 days, citing the absence of a draft, a named firm, and an itemised quote. Keep the original receipt or transfer slip.
- Escalate to the named firm. If a firm was named, write to the firm directly asking whether they received the payment, whether the work was done, and whether they instructed the agent to collect. Most firms will disown an unrecorded collection.
- LHDN complaint route for stamping irregularities. If stamp duty was collected but not actually paid through e-Duti Setem, this is a stamping irregularity — file a complaint with LHDN and request the agreement be re-stamped in your name at the correct scale.
- Tribunal mention. Tenancy-related disputes under RM50,000 can be brought before the Homebuyer Tribunal (or the relevant Small Claims pathway depending on the state). Bring the written demand, the transfer slip, the agent's reply (or silence), and the agreement.
- Bank dispute / police report. If payment was by card or bank transfer and the agent refuses to engage, a formal dispute with your bank is appropriate; for large sums a police report for cheating may also be on the table — get legal advice before going this route.
Acting in writing, in order, gives you a clean paper trail whether the matter ends at refund, LHDN complaint, or tribunal.
Frequently asked questions
Can the agent force me to use their specific lawyer?
No. You can use your own lawyer for review, and the agreement can be drafted by either side's solicitor. An agent who makes a particular lawyer compulsory without showing a draft or naming the firm is not describing a legal requirement.
Who is supposed to pay for drafting the tenancy agreement?
There is no statute fixing this — drafting cost is whatever the parties agree. Market practice is that the party who instructs the draft pays for it (often the landlord), and independent drafting fees for a standard residential tenancy agreement vary by firm and complexity. Many landlords cover drafting as part of letting the unit, so check what your agreement says before agreeing to any charge.
Is the stamp duty the same as the lawyer fee?
No. Stamp duty is a government charge paid through LHDN's e-Duti Setem on MyTax under the Finance Act 2024 scale (RM1 / RM3 / RM5 / RM7 per RM250 of annual rent by lease duration). A lawyer or stamping fee is separate.
What should I do if the agent demands a cash "lawyer fee" to their personal account?
Decline and ask for the draft agreement, the law firm's name, and an itemised quote on the firm's letterhead. A genuine legal fee is paid to a named firm, not to an agent's personal account. LHDN handles stamping complaints, and tenancy-related disputes under RM50,000 can be brought to the Homebuyer Tribunal. If none of that paperwork is produced, treat it as an undisclosed markup.
Do I need a lawyer at all for a standard residential tenancy?
For a straightforward residential tenancy, many tenants sign without independent legal review, but reading the repair, notice, subletting, and deposit clauses carefully is essential — these are the clauses that drive the bulk of deposit disputes at move-out, and reading them yourself is the cheapest risk reduction available. Legal review becomes more worthwhile for long terms, high rent, unusual clauses, or any term you do not fully understand.
How to verify before you pay
Verify the demand by asking for three things: the draft agreement, the named firm, and the itemised quote. A legitimate legal fee produces all three; a markup produces none.
Before handing over any sum labelled "lawyer", request the draft agreement in writing, the name and registration of the firm or conveysancer doing the work, and a written quote broken down by item. Cross-check the stamp duty figure yourself using the e-Duti Setem scale rather than taking a quoted number on trust. Pay only to the firm's client account or through the official LHDN channel, never to an individual's personal account. If you are screening a rental through a managed platform, the agreement, stamping, and cost split are usually standardised up front — browse rentals on SPEEDHOME to compare units where the process and charges are stated before you commit.