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Lawyers' Conveyancing Costs Rules

This reprint of this Statutory Instrument incorporates all amendments, if any, made before25 November 2006 and in force at  1 July 2001.


.........
Legislative Counsel
Dated 25 November 2006


INDEPENDENT STATE OF PAPUA NEW GUINEA.

Chapter 91.

Lawyers' Conveyancing Costs Rules

ARRANGEMENT OF SECTIONS.

Lawyers' Conveyancing Costs Rules

MADE under the Lawyers Act 1986.


Dated                   200 .


  1. INTERPRETATION.

(1) In these Rules, unless the contrary intention appears–

“agreement” means a written agreement, and includes a contract;

“bill of sale” includes a hire-purchase agreement, crop lien and stock mortgage;

“copy” includes a manuscript copy, a copy by a carbon impression machine made engrossment and any other facsimile;

“folio” means 100 words or figures or words and figures, and includes a part of a folio;

“item remuneration” means remuneration prescribed by Schedule 2;

“lease” includes any document by which land is demised for a term or for a periodic tenancy, but does not include a mortgage;

“purchaser” includes a transferee;

“transfer” includes assign, assure, convey grant and exchange;

“vendor” includes a transferor.

(2) For the purposes of these Rules–

(a) a transaction shall be deemed to have been completed or substantially completed notwithstanding that, at the request or with the concurrence of the client the lawyer has not performed some of the work or services usual or necessary to complete the transaction; and

(b) –a fractional part of K200.00. of consideration or rent shall be accounted as K200.00.

  1. CONSIDERATION FOR THE PURPOSES OF THESE RULES.

(1) Unless the contrary intention appears, in determining in accordance with these Rules the remuneration of a lawyer–

(a) when in a particular transaction the consideration is not wholly monetary, the consideration shall be deemed to include the value of any property transferred or given, or agreed to be transferred or given, under the transaction; and

(b) when the transaction is in respect of property or of land under the Land Registration Act 1981, and other land, the consideration shall be apportioned according to the respective values of the property and remuneration may be charged in respect of each transfer or other assurance necessarily prepared; and

(c) where–

(i) the consideration for a transaction is marriage or any other consideration that is not monetary; or

(ii) there is no consideration for a transaction,

the consideration shall be deemed to be the value of the subject property; and

(d) subject to Subsection (2), the consideration for a mortgage or bill of sale shall be deemed to be the sum secured by the document plus any further specified or ascertainable sum agreed to be advanced and secured by the document, but without regard to the amount of any possible but unspecified further advance not ascertainable by the terms of the document; and

(e) on the sale of an equity of redemption, the amount of the principal sum and the interest due under the mortgage shall be deemed to form part of the consideration except when the mortgagee is the purchaser and employs the lawyer who prepared the mortgage, in which case the consideration shall be deemed to be the sale price of the equity.

(2) In a case referred to in Subsection (1)(d), where the document concerned does not secure a specified ascertainable sum item remuneration applies.

  1. SCALE REMUNERATION.

(1) Subject to Subsection (3), the remuneration of a lawyer, in respect of any conveyancing business (including the formation and registration of companies) shall be–

(a) when the transaction has been completed or substantially completed, according to the scale of costs in Schedule 1 so far as applicable; and

(b) for all other business, according to the scale of costs in Schedule 2.

(2) The charges in Schedule 1 include all matters specified in Schedule 2 and attention to all matters usual and necessary to complete the transaction on behalf of the client, but not the obtaining of the consent of the Head of State or of the Minister where necessary.

(3) The remuneration prescribed by Subsection (1) does not include disbursements for–

(a) fees or other charges payable at public offices or to public authorities, or to surveyors, valuers, auctioneers or counsel; or

(b) duty stamps, travelling or hotel expenses, postage other than ordinary postage; or

(c) other out-of-pocket expenses reasonably and properly incurred and paid; or

(d) payments necessarily made to another lawyer employed as agent; or

(e) remuneration for any extra work occasioned by material changes occurring in the course of any business by reason of death, insolvency or otherwise,

which may be charged in addition to the remuneration prescribed by Subsection (1).

  1. ITEM REMUNERATION.

(1) Subject to Subsection (3), in all cases to which the remuneration prescribed by Schedule 1 applies, a lawyer may, within seven days from the time of undertaking any conveyancing business, elect, by written notice to his client, to charge item remuneration.

(2) On receipt of a notice under Subsection (1), the client may terminate the retainer, and item remuneration applies in respect of services previously rendered by the lawyer.

(3) Notwithstanding Subsection (1) where the consideration does not exceed K2,000.00, an election shall not be made under that subsection except where because of some difficulty or complexity in the transaction the charges prescribed by Schedule 1 would be inadequate.

  1. ADDITIONAL REMUNERATION IN URGENT CASES.

In respect of any business that is required to be, and is, by special exertion, carried through in an exceptionally short space of time, a lawyer may be allowed a proper additional remuneration, in the discretion of the taxing officer, for the special exertion according to the circumstances.

  1. SECURITY FOR COSTS.

A lawyer may accept from his client, and a client may give to his lawyer, security for the amount to become due to the lawyer for business to be transacted by him for the client.

SCHEDULE 1 – SCALE REMUNERATION.

Note No. 34 of 1978 amended the Conveyancing Costs Rules for all conveyancing business undertaken on or after 18 January 1979:–

“The Conveyancing Costs Rules are amended by increasing the cost of each item of fees and costs allowed for in those Rules by 20%.”

The 20% allowed by No. 34 of 1978 has not been added to the following tables.

Sch. 1.1. Memoranda of Transfer..

 

Consideration.
Lawyer for vendor.
Lawyer for purchaser.
K
K
K
Not exceeding 400
8.40
12.24
401-600
10.08
16.80
601-800
13.44
21.84
801-1,000
13.44
23.52
1,001-1,200
15.12
25.20
1,201-1,400
15.12
28.56
1,401-1,600
16.80
31.92
1,601-1,800
16.80
33.60
1,801-2,000
21.84
35.28
2,001-2,400
21.84
40.32
2,401-2,800
23.52
42.00
2,801-3,200
23.52
45.36
3,201-3,600
25.20
50.40
3,601-4,000
28.56
57.12
4,001-4,400
31.92
58.80
4,401-4,800
31.92
63.84
4,801-5,200
33.60
63.84
5,201-5,600
33.60
70.56
5,601-6,000
35.28
75.60
6,001-7,000
40.32
80.64
7,001-8,000
42.00
90.72
8,001-9,000
45.36
92.40
9,001-10,000
48.72
100.80
10,001-12,000
50.40
107.52
12,001-14,000
52.08
112.56
14,001-16,000
57.12
117.60
16,001-18,000
58.80
124.32
18,001-20,000
63.84
129.36
20,001-22,000
67.20
132.72
22,001-24,000
67.20
132.72
24,001-26,000
70.56
137.76
26,001-28,000
70.56
141.12
28,001-30,000
72.24
141.12
30,001-32,000
72.24
146.16
32,001-34,000
72.24
149.52
34,001-36,000
72.24
151.20
36,001-38,000
78.96
156.24
38,001-40,000
78.96
158.00
40,001-42,000
80.64
159.85
42,001-44,000
80.64
161.74
44,001-46,000
84.00
162.36
46,001-48,000
84.00
163.00
48,001-50,000
90.72
164.89
50,001 and upwards
Add K5.60 for everyK4,000 or part of K4,000
Add K5.60 for everyK2,000 or part of K2,000

Sch. 1.2.Memoranda of Transfer.

(Same lawyer acting for both Vendor and Purchaser.)

Consideration.
Vendor.
Purchaser.
K
K
K
Not exceeding K400
6.72
13.44
401-600
8.40
15.12
601-800
8.40
16.80
801-1,000
10.08
21.84
1,001-1,200
13.44
23.52
1,201-1,400
13.44
25.20
1,401-1,600
15.12
25.20
1,601-1,800
15.12
28.56
1,801-2,000
16.80
31.92
2,001-2,400
16.80
33.60
2,401-2,800
16.80
35.28
2,801-3,200
16.80
40.32
3,201-3,600
23.52
42.00
3,601-4,000
25.20
45.36
4,001-4,400
25.20
50.40
4,401-4,800
28.56
50.40
4,801-5,200
28.56
52.08
5,201-5,600
28.56
53.92
5,601-6,000
31.92
58.80
6,001-7,000
31.92
65.52
7,001-8,000
35.28
70.56
8,001-9,000
35.28
73.92
9,001-10,000
40.32
75.60
10,001-12,000
42.00
80.64
12,001-14,000
45.36
90.72
14,001-16,000
45.36
92.40
16,001-18,000
48.72
99.12
18,001-20,000
50.40
100.80
20,001-23,000
52.08
107.52
23,001-26,000
52.08
112.56
26,001-29,000
57.12
117.60
29,001-32,000
57.70
124.32
32,001-35,000
58.80
126.00
35,001-38,000
58.80
129.36
38,001-41,000
63.84
132.72
41,001-44,000
63.84
132.72
44,001-47,000
63.84
137.76
47,001-50,000
63.84
141.12
50,001 and upwards
Add K2.75 for everyK2,000 or part of K2,000
Add K4.19 for everyK2,000 or part of K2,000

Sch. 1.3.Bills or Memoranda of Mortgage.

(Other than over Hotel Properties.)

Consideration.
Lawyer for mortgagor.
Lawyer for mortgagee.
Same lawyer for mortgagor and mortgagee.
K
K
K
K
Not exceeding K400
9.71
19.42
27.19
401-600
15.54
27.19
33.02
601-800
17.48
29.13
36.90
801-1,000
17.48
33.02
38.85
1,001-1,200
19.42
36.90
40.79
1,201-1,400
19.42
38.85
46.62
1,401-1,600
25.25
40.79
48.56
1,601-1,800
25.25
46.62
52.44
1,801-2,000
27.19
48.56
56.33
2,001-2,400
27.19
56.33
60.21
2,401-2,800
29.13
58.27
66.04
2,801-3,200
29.13
66.04
67.98
3,201-3,600
33.02
66.04
73.81
3,601-4,000
36.90
73.81
81.58
4,001-4,400
38.85
73.81
87.41
4,401-4,800
38.85
77.70
91.29
4,801-5,200
40.79
81.58
93.24
5,201-5,600
40.79
83.52
97.12
5,601-6,000
46.62
87.41
104.89
6,001-7,000
48.56
97.12
110.72
7,001-8,000
52.44
104.89
116.55
8,001-9,000
56.33
110.72
124.32
9,001-10,000
58.27
116.55
130.14
10,001-12,000
66.04
126.26
143.74
12,001-14,000
73.81
135.97
153.45
14,001-16,000
73.81
143.74
159.28
16,001-18,000
73.81
149.57
168.99
18,001-20,000
77.70
159.28
174.82
20,001-22,000
81.58
168.99
182.59
22,001-24,000
83.52
174.82
190.36
24,001-26,000
87.41
182.59
194.25
26,001-28,000
91.29
190.36
200.07
28,001-30,000
93.25
194.25
209.79
30,001-32,000
97.12
200.07
213.67
32,001-34,000
104.89
209.79
221.44
34,001-36,000
104.89
213.67
229.21
36,001-38,000
106.83
221.44
233.10
38,001-40,000
110.72
229.21
236.98
40,001-42,000
114.60
233.10
244.75
42,001-44,000
116.55
236.98
252.52
44,001-46,000
120.43
244.75
260.29
46,001-48,000
124.32
252.52
268.06
48,001-50,000
126.26
260.29
271.95
50,001 and upwards
Add K6.47 forevery K2,000 orpart of K2,000
Add K6.47 forevery K2,000 orpart of K2,000
Add K4.84 forevery K2,000 orpart of K 2,000

Sch. 1.4.Company Mortgages–(Where there is no Mortgage Debenture.).

The same as bills of mortgage and memoranda of mortgage together with a further sum of–

K4.20 where the mortgage does not exceed
K2,000
K8.40 where the mortgage does not exceed
K4,000
K18.50 where the mortgage exceeds
K6,000

Sch. 1.5.Leases or Agreements for Leases–(Other than Hotel Leases.).

All costs payable by Lessee.

Annual rental.
Lawyer for lessor.
Lawyer for lessee.
Same lawyer acting for lessor and lessee.
K
K
K
K
Not exceeding K200
14.70
11.76
19.11
201-400
22.05
14.70
24.99
401-600
29.40
20.58
30.87
601-800
36.75
24.99
39.69
801-1,000
44.10
31.00
45.58
1,001-1,200
51.45
35.28
55.86
1,201-1,400
58.80
39.69
58.80
1,401-1,600
66.15
44.10
69.09
1,601-1,800
73.50
49.98
79.38
1,801-2,000
80.85
55.86
83.93
2,001-2,200
86.73
57.33
88.20
2,201-2,400
91.14
61.74
94.08
2,401-2,600
95.55
64.68
98.49
2,601-2,800
101.43
66.15
100.90
2,801-3,000
107.31
72.03
102.78
3,001-3,200
108.78
73.50
113.19
3,201-3,400
116.13
79.38
116.13
3,401-3,600
120.54
80.85
123.48
3,601-3,800
123.48
83.79
127.89
3,801-4,000
130.83
86.73
132.30
4,001 and upwards
Add K2.45 for everyK200 or part of K200
Add K4.90 for everyK600 or part of K600
Add K2.45 for everyK400 or part of K400

Special covenants to be charged for extra.

Where the rent is progressive the charges shall be allowed at the highest rental.

Where a premium is paid, whether for the lease or for goodwill of business carried on in premises, the same shall be treated as rental and averaged over the whole term of the lease.

Sch. 1.6.Bills of Sale.

(Other than Hotel Bills of Sale.)

Consideration.
Lawyer for creditor.
K
K
Not exceeding K200
8.40
201-400
10.50
401-600
13.65
601-800
14.70
801-1,000
15.75
1,001-1,200
17.85
1,201-1,400
19.95
1,401-1,600
21.00
1,601-1,800
22.05
1,801-2,000
25.20
2,001-2,200
26.25
2,201-2,400
28.35
2,401-2,600
30.45
2,601-2,800
31.50
2,801-3,000
32.55
3,001-3,200
35.70
3,201-3,400
36.75
3,401-3,600
39.90
3,601-3,800
40.95
3,801-4,000
42.00
4,001-4,200
44.10
4,201-4,400
46.20
4,401-4,600
47.25
4,601-4,800
49.35
4,801-5,000
51.45
5,001-5,200
52.50
5,201-5,400
56.70
5,401-5,600
56.70
5,601-5,800
57.75
5,801-6,000
59.85
6,001-6,600
61.95
6,601-7,200
63.00
7,201-7,800
65.10
7,801-8,400
67.20
8,401-9,000
68.25
9,001-9,600
70.35
9,601-10,000
72.45
10,001-11,000
73.50
11,001-12,000
76.65
12,001-13,000
77.70
13,001-14,000
77.70
14,001-15,000
80.85
15,001-16,000
82.95
16,001-17,000
82.95
17,001-18,000
86.10
18,001-19,000
86.10
19,001-20,000
88.20
20,001 and upwards
Add K3.50 for every K2,000or part of K2,000
Lawyer for debtor-One half of the above charges.

Sch. 1.7.Contracts of Sale of Freehold or Leasehold Land.

Contract to be prepared by Vendor. Each party pays his own costs in absence of special agreement.

Consideration.
Lawyer for vendor.
Lawyer for purchaser.
K
K
K
Not exceeding K400
13.44
8.40
401-1,000
21.84
15.12
1,001-2,000
28.56
16.80
2,001-3,000
33.60
23.52
3,001-4,000
40.32
25.20
4,001-5,000
45.36
28.56
5,001-7,000
50.40
31.92
7,001-9,000
57.12
33.60
9,001-11,000
63.84
35.28
11,001-13,000
67.20
40.32
13,001-15,000
72.24
42.00
15,001-17,000
78.96
45.36
17,001-19,000
84.00
48.72
19,001-21,000
90.72
50.40
21,001-23,000
95.76
52.08
23,001-25,000
100.80
57.12
25,001-27,000
107.52
58.80
27,001-29,000
112.56
63.84
29,001-31,000
117.60
65.52
31,001-33,000
124.32
67.20
33,001-35,000
129.36
70.56
35,001-37,000
132.72
73.92
37,001-39,000
137.76
75.60
39,001-41,000
146.16
78.96
41,001-43,000
151.20
80.64
43,001-45,000
157.92
84.00
45,001-47,000
164.64
90.72
47,001-49,000
168.00
90.72
49,001-51,000
173.04
92.40
51,001-53,000
181.44
95.76
53,001-55,000
184.80
99.12
55,001-57,000
191.52
99.20
57,001-59,000
198.24
104.16
59,001-61,000
201.60
107.52
61,001-63,000
204.96
109.20
63,001-65,000
213.36
112.56
65,001-67,000
218.40
115.92
67,001-69,000
225.12
117.60
69,001-71,000
231.84
122.64
71,001 and upwards
Add K5.60 per K2,000or part of K2,000
Add K2.80 per K2,000or part of K2,000

Sch. 1.8.Contracts of Sale of Freehold or Leasehold Land.

(Lawyer acting for both Vendor and Purchaser.)

Consideration.
Vendor.
Purchaser.
K
K
K
Not exceeding K400
13.44
6.72
401-1,000
16.80
13.44
1,001-2,000
23.52
13.44
2,001-3,000
28.48
16.80
3,001-4,000
33.60
21.76
4,001-5,000
40.32
23.52
5,001-7,000
43.68
25.20
7,001-9,000
48.72
26.88
9,001-11,000
50.40
28.48
11,001-13,000
52.08
31.92
13,001-15,000
58.80
33.60
15,001-17,000
63.84
33.60
17,001-19,000
67.20
35.28
19,001-21,000
70.56
35.28
21,001-23,000
72.24
40.32
*Note

25,001-27,000
82.32
43.68
27,001-29,000
84.00
45.36
29,001-31,000
90.72
48.72
31,001-33,000
92.40
50.40
33,001-35,000
95.76
50.40
35,001-37,000
100.80
52.08
37,001-39,000
102.48
52.08
39,001-41,000
107.52
57.12
41,001-43,000
110.88
58.80
43,001-45,000
115.92
60.48
45,001-47,000
116.00
63.84
47,001-49,000
122.64
65.52
49,001-51,000
124.32
67.20
51,001-53,000
129.36
67.20
53,001-55,000
132.72
68.88
55,001-57,000
136.08
70.56
57,001-59,000
137.76
73.92
59,001-61,000
144.48
75.60
61,001-63,000
149.52
77.28
63,001-65,000
151.20
78.96
65,001-67,000
156.24
80.64
67,001-69,000
159.60
84.00
69,001-71,000
164.64
84.00
71,001 and upwards
Add K5 60 per K2,000or part of K2,000
Add K2.80 per K2,000or part of K2,000

Sch. 1.9.Deeds of Extension, Release of Mortgages, Renewal of Registration or Release of Bills of Sale, Stock Mortgages and Liens on Crops.

 

Consideration
Lawyer for mortgagor.
Lawyer for mortgagee.
Same lawyer acting for mortgagor and mortgagee.
K
K
K
K
Not exceeding K400
12.60
6.30
18.90
401-1,000
14.15
7.85
21.27
1,001-2,000
15.75
12.60
23.55
2,001-10,000
22.05
12.60
33.05
10,001-20,000
28.35
14.15
42.50
20,001-40,000
31.50
15.75
47.25
40,001 and upwards
37.80
20.45
56.70

Sch. 1.10.Records of Marriage.

 
K
One deed and less than three
12.60
Three deeds and less than six
15.75
Six deeds and over
An additional charge in accordancewith the work involved.

Sch. 1.11.Records of Death.

 
K
One deed and less than three
14.15
Three deeds and less than six
15.75
Six deeds and over
An additional charge in accordancewith the work involved.

Sch. 1.12.Production of Titles.

 
K
For production of title deeds at the office of a lawyer, the Public Curator or the Titles Office
6.30
For each additional title deed after the fourth
1.50

Sch. 1.13.Transfer of Brands.

 
K
First transfer
9.45
Each succeeding transfer
6.30

Sch. 1.14.Mortgages of Life Policies: Assignments by Way of Mortgage.

Where mortgage of life policy constitutes the principal security, the scale shall be the same as the mortgagor’s costs in connection with a bill of mortgage. Where mortgage of life policy constitutes the collateral security–see Collateral Securities (Item 17).

Sch. 1.15.Assignment of Leases.

The charges to be the same as provided for lawyer’s costs in the case of a memorandum of transfer.

Sch. 1.16.Sub-Mortgages of Transfers of Mortgages.

General Itemized Scale.

Sch. 1.17.Collateral Securities.

For the principal security full scale costs shall be charged.For collateral securities–

(a) for the first collateral security, 50% of the original security with a minimum charge of K9.45

(b) for the second and all further collateral securities, 20% of the principal security with a minimum of K9.45.

Copying contemporaneous documents for inclusion in securities–scale charge for engrossing.

SCHEDULE 2 – AMENDMENT OF CONVEYANCING COSTS RULES..

Note No. 34 of 1978 amended the Conveyancing Costs Rules for all conveyancing business undertaken on or after 18 January 1979:–

“The Conveyancing Costs Rules are amended by increasing the cost of each item of fees and costs allowed for in those Rules by 20%.”

The 20% allowed by No. 34 of 1978 has not been added to the following items.

ITEM REMUNERATION.

 

1.
Instructions.

For deeds, wills and other documents not otherwise specified in this Schedule-Such fee as, having regard to the skill, responsibility care and labour required, the number and length of the papers to be perused, the quantity and complexity of the facts to be considered, and other circumstances the case, is fair and reasonable.

For declarations-K2.25 or such allowance as is fair and reasonable.
2.
Drawing.



K

Deeds, wills and documents of like importance, per folio
0.85

Abstract of title, per sheet of 6 folios
75

Requisitions on title
75


Or not to exceed
90

Answers to requisitions
75


Or not to exceed
90

Where a document is printed, per folio or printed matter
0.26

Other documents, per folio
0.62
3.
Engrossing and Copies.


K

Engrossing, per folio
0.26

Fair copies, per folio
0.26

Fair copies, if attested, per folio
0.25

Carbon copies, per folio
0.10

Third or additional copy
0.07

Fair copy abstract of title, per sheet of 6 folios
66

Where a document is printed, per folio of printed matter
0.07
4.
Perusals, Productions and Examining.

Perusing deeds, wills, abstracts of title and documents of like importance, per folio
0.42

Perusing other documents, per folio
0.21

Examining abstract with deeds, etc.
75


Or per hour
00

Producing deeds for that purpose
15


Or per hour
00

Examining engrossment with drafts, per folio
0.21
5.
Attendances.

To stamp or register any instrument for each necessary attendance at the Stamp Office or Registry
15

To deliver documents to another lawyer or to counsel (after brief or case delivered)
0.90

On counsel to deliver case or brief
70

On counsel in conference
75


Or per hour
00

Searching
75


Or per hour
00


On completion of matter
70


Or per hour
00

Any other ordinary attendance
75


Or per hour
00

On telephone
50
6.
Letters.

For any letter making an appointment or asking a person to call, or forwarding a document without comment, or to the like effect
20

For circular letters after the first
0.55

Other ordinary letter
50


Or according to circumstances-Such fee as, having regard to the skill, responsibility care and labour required, the number and length of any papers to be perused, the quantity and complexity of the facts to be considered and the other circumstances of the case, is fair and reasonable.
7.
Miscellaneous.

Where any services are necessarily and properly performed for which no specific allowance is provided in this Schedule, such an allowance may be made as is for the time being allowed under the Schedule to the Costs Rules of the National Court in respect of a similar service, or if no similar service is mentioned in those Rules, then such allowance may be made as is just and reasonable.

Office of Legislative Counsel, PNG

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