KUALA LUMPUR: The Bar Council's "no discount" ruling to lawyers handling property transaction will compel both house buyers and developers to pay more, the Real Estate and Housing Developers' Association Malaysia (Rehda) said.

Rehda president Datuk Jeffrey Ng said the association advocated market-driven fees instead of an inflexible prescribed scale.

He said operation of fixed scale fees would tend to profit the more established lawyers and discriminate against small and medium-sized legal firms.

"Furthermore, lawyers operate on varying costs and overheads, which should be allowed to be reflected in the fees they charge," he added.

The Solicitors' Remuneration Order 1991 (SRO), which came into force yesterday, which restricts solicitor from giving discounts to house buyers, is being enforced by the Bar Council.

Ng said that under the current system, the majority of primary housing transactions fell under the purview of the Housing Development (Control & Licensing) Act 1996, which prescribed a standard Sale and Purchase Agreement (SPA).

The SPA did not provide any room for variation except for the particulars of the transacted property.

"Solicitors handle the same document repeatedly and the degree of repetitive work brings about savings in terms of time and effort. Such savings should be shared with the house buyer," he said.

"When discounts are allowed, developers have been able to absorb these (legal) fees as an incentive and added service to house buyers, particularly when there are economies of scale for larger projects.

"If scale fees are imposed, consumersand developers will end up paying more," he said.

Ng challenged the Bar Council's concern about a deterioration of professional services when discounts were given.

"It does not hold water because they sanction discounts for properties costing RM100,000 and below - unless the Bar Council is suggesting that such house buyers are accorded substandard professional services," he added.

He said Rehda maintained its stance the solicitors should be at liberty to provide discounts as in the case of court lawyers, and that the fees charged should be a reflection of the solicitor.

The association believed a ceiling on the fees charged by lawyers was are more viable and equitable alternative to consumers.

"Rehda hopes the Bar Council will seriously reassess the impact of this rule and adopt a market given approach for the well being of consumers and members of the legal fraternity," he said.