1.Introduction : Letter of Demand Cost in Malaysia
If you are dealing with unpaid debts, rental arrears, breach of agreement, or a defaulting party, issuing a Letter of Demand (LOD) is often the first and most important legal step. One of the most common questions clients ask is:
“How much does a lawyer’s Letter of Demand cost in Malaysia?”
This article explains the typical legal fees, what affects the cost, and why engaging a lawyer is often more effective than sending a self-written demand letter.
1.What Is a Lawyer’s Letter of Demand (LOD)?
A Letter of Demand is a formal legal notice issued by a lawyer demanding that the recipient comply with specific obligations,usually payment, vacant possession, or rectification of breach within a stipulated time.
In Malaysia, an LOD is commonly used for:
Unpaid debts or friendly loans
Rental arrears and tenant defaults
Breach of contract
Failure to return money or property
Although not mandatory in all cases, an LOD is strongly recommended before commencing legal action
2.Typical Lawyer’s Letter of Demand Cost in Malaysia
There is no fixed statutory fee for LOD.Letter of Demand Cost in Malaysia vary depending on several factors.
That said, most law firms charge within the following range:
Estimated Letter of Demand Cost in Malaysia
RM850 – RM1,500 for a standard Letter of Demand
More complex cases may cost more
This usually includes:
Reviewing facts and documents
Drafting a legally sound demand letter
Issuing the LOD on the firm’s letterhead
Serving the LOD (email / post / courier)
3. Factors That Affect the Cost of an LOD
1️⃣ Complexity of the Case
Simple unpaid invoices cost less than cases involving:
Multiple defaults
Disputed facts
Tenancy termination
No written agreements
The more legal analysis required, the higher the fee.
2️⃣ Amount in Dispute
While LOD fees are generally fixed, lawyers often consider:
Size of the claim
Commercial impact
Risk exposure
A RM10,000 claim and a RM300,000 claim may not attract the same drafting effort.
3️⃣ Type of Matter
Different matters require different legal emphasis:
Debt recovery LOD
Tenancy & eviction-related LOD
Friendly loan disputes
Corporate breaches
Each has different legal risks and drafting requirements.
4️⃣ Urgency
Urgent or same-day drafting may attract additional fees, especially where immediate legal action is anticipated.
4. Is a Cheaper LOD Always Better?
Not necessarily.
A poorly drafted or aggressive LOD can:
Weaken your legal position
Contain legally incorrect threats
Be ignored without consequence
Create issues if the matter proceeds to court
Courts often scrutinise the tone and content of a Letter of Demand, especially when it becomes part of the litigation record.
5. Can I Write My Own Letter of Demand to Save Cost?
Yes but it comes with risks.
Risks of Self-Written LODs
Incorrect legal wording
No proper timeline or demand structure
Weak enforcement impact
Easier for the recipient to ignore
In practice, lawyer-issued LODs are taken far more seriously, especially by companies, landlords, tenants, and debtors who understand legal consequences.
6.What Happens After the Letter of Demand Is Issued?
Once the LOD is served:
The recipient may pay or comply
Request time or negotiation
Ignore the letter
If the LOD is ignored, the lawyer can then advise on:
Filing a court action
Recovery of possession
Eviction proceedings
Further legal remedies
A properly drafted LOD places you in a stronger position for the next step.
Why Engage a Lawyer for a Letter of Demand?
A Letter of Demand (LOD) issued by a lawyer is far more than a reminder for payment or compliance. It is a formal legal instrument that signals seriousness, protects your position, and prepares the ground for further legal action if necessary.
A lawyer’s Letter of Demand:
🔹 Carries Legal Authority
An LOD issued by a law firm immediately communicates that the matter is being handled professionally and that legal consequences may follow if the demand is ignored. In disputes involving unpaid rent, breach of a tenancy agreement, or failure to vacate premises, this authority often compels the recipient to respond promptly.
🔹 Protects Your Legal Rights
A properly drafted LOD ensures that your rights under the contract and the law are clearly asserted. This is especially important in landlord–tenant situations, where incorrect wording or premature threats may later prejudice your position in a landlord and tenant dispute.
🔹 Preserves Evidence and Records
A lawyer’s LOD creates a clear documentary trail showing that:
A breach has occurred
The defaulting party was notified
Reasonable time was given to remedy the breach
This documentation is crucial if the matter escalates to court proceedings or enforcement action.
🔹 Sets the Foundation for Court Proceedings
In many tenancy and commercial disputes, courts expect parties to first attempt resolution before litigation. A lawyer-issued LOD demonstrates that you have acted reasonably and followed proper legal steps, strengthening your case should legal proceedings become unavoidable.
🔹 Increases the Likelihood of Early Settlement
Most importantly, a professionally drafted LOD significantly increases the chances of settlement without litigation. Clear legal demands, supported by contractual and statutory references, often motivate the opposing party to comply—saving you time, legal costs, and unnecessary stress.
FAQs
Is a Letter of Demand compulsory in Malaysia?
A Letter of Demand is not legally compulsory in every case in Malaysia. However, it is widely regarded as a best practice before commencing legal proceedings.
In many civil matters such as debt recovery, rental arrears, breach of agreement, or friendly loan disputes issuing a Letter of Demand serves several important purposes. It formally notifies the recipient of the alleged breach, provides an opportunity to resolve the matter amicably, and helps demonstrate to the court that reasonable steps were taken prior to litigation.
That said, the necessity and suitability of issuing a Letter of Demand may vary depending on the nature of the dispute, contractual terms, and surrounding circumstances. Parties are encouraged to seek legal advice to determine whether a Letter of Demand is appropriate for their specific situation.
How long should I give the recipient to respond to a Letter of Demand?
There is no fixed statutory timeframe prescribed under Malaysian law for responding to a Letter of Demand. In practice, a response period of 7 to 14 days is commonly adopted and generally considered reasonable.
The appropriate timeframe may depend on several factors, including:
The complexity of the matter
The amount claimed
The urgency of the situation
Any contractual provisions between the parties
Allowing a reasonable response period helps ensure fairness and may be taken into consideration should the matter later proceed to court. What constitutes a “reasonable” timeframe ultimately depends on the facts of each case.
Can one Letter of Demand be sufficient to resolve a dispute?
Yes, in many instances, a single properly drafted Letter of Demand is sufficient to resolve a dispute without further legal action.
A professionally prepared Letter of Demand clearly sets out the legal basis of the claim, the consequences of non-compliance, and the steps that may follow if the matter remains unresolved. This often prompts the recipient to respond, negotiate, or settle the matter promptly.
However, outcomes may vary depending on the recipient’s conduct and the merits of the case. In some situations, further legal steps may be required if the Letter of Demand is ignored or disputed.
How Our Firm Can Help
At The Law Chambers of Gurvin, we regularly assist clients with:
Debt recovery Letters of Demand
Tenant default and rental arrears LODs
Friendly loan disputes
Breach of agreement matters
Each Letter of Demand is professionally drafted, legally sound, and tailored to your specific situation.
👉 If you need a Letter of Demand drafted by a lawyer, contact us to discuss your case and fees transparently.