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 PUTRAJAYA, Tues: The Solicitors Costs Committee headed by the Chief Judge of
Malaya, Tan Sri Dato' Siti Norma Binti Yaakob this morning discussed the
Real Estate and Housing Developers Association's objection to the no-discount
rule.
Present were Zabariah Binti Mohd Yusof, the Registrar of the
High Court, Pretam Singh representing the Attorney General, and Ragunath Kesavan,
Roger Tan and Tony Woon representing the Bar Council.
The meeting was called after REHDA had made representations
to the government that:
• the no-discount rule is against
competition and is not in line with the current market;
• the no-discount rule restricts solicitors'
professional skills;
• the discount of 25% provided for under the
Legal Profession Act is for sale prices which do not exceed RM100,000; and
• the Solicitors Remuneration Order and the
no-discount rule have increased costs to the purchasers.
It was resolved that the Committee would meet with
REHDA to hear its views in a meeting to be fixed, probably in January 2007.
Meanwhile, Tan, who is also the Chairman of the SRO
Enforcement Committee said in the recent months of October and November 2006, various teams
from the Enforcement Committee had visited a firm in
Selangor and 2 firms in Kuala Lumpur, in order to verify information contained
in their returns.
Arising out of complaints received, Tan said the firm in Selangor was earlier required to
file an additional return for a two-month period, which involved a total of 448
transactions.
For one of the firms in Kuala Lumpur, the team members who visited the firm
conducted checking on the 42 transactions as reported in the firm’s return for a
two-week period. As for the other Kuala Lumpur firm, the firm had filed a
return for a two-week period and an additional return for a four-month period,
which involved a total of 30 transactions.
Tan added that the partners of all these firms had extended their full cooperation to the
respective visiting teams.
Tan also said the
Enforcement Committee would continue to make visits to legal firms in Kuala Lumpur and other States, whenever necessary,
to ensure members' compliance with the SRO 2005 and the no-discount rule.
As regards the suit filed by lawyer Abdul Razak bin Hashim
to, inter alia, nullify the Solicitors Remuneration (Enforcement) Rules
2004, Tan said the High Court has fixed the matter for hearing on 20 November
next year.
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Circular No 110/2012: Seminar on Introduction to ICC Arbitration: An Insight into the 2012 ICC Rules
The Real Estate and Housing Develolpers' Association (REDHA) has made a representation against the no-discount rule.
Is the association aware that some of its members have driven down legal fees, thereby causing the institution of the rule per se?
Is the association also aware that real estate agents charge more than 2 per cent for their services in getting buyers and sellers together for a deal? Against that 2 per cent or more charge, can they justify their representation?