Malaysia Property Glossary A–Z: Plain-English Definitions of Every Term You Will Encounter

Malaysian property comes with a lot of jargon. Here's a plain-English A–Z — each term links to a full guide where there is one.

A

• AIP (Approval in Principle) — a bank's preliminary indication that you qualify for a loan amount, subject to documents. See home loan & DSR.
• Assessment (cukai pintu) — local-council tax on a property, billed twice a year.
• Auction property — a property sold by bank or court auction, often below market. See how to buy auction property.

B

• Bumi lot / Bumiputera discount — units reserved for Bumiputera buyers, usually at a state-mandated discount. See Bumi lot explained.

C

• CCRIS / CTOS — your credit reports; banks check them for loan approval.
• Co-broking — two agents splitting a deal to widen reach. See what co-broking is.

D

• DSR (Debt Service Ratio) — the share of net income taken by debt repayments; it caps how much you can borrow. See home loan & DSR.
• Down payment — the cash portion of the price (usually 10%). See the true cost of buying.

F

• Freehold — ownership in perpetuity. See freehold vs leasehold.

L

• LACA — Loan Agreement cum Assignment, used in bank auctions for properties without an individual title.
• Leasehold — ownership for a fixed term (commonly 99 years). See freehold vs leasehold.

M

• Margin of finance — the percentage of the price a bank will lend (up to ~90% for a first home). See home loan & DSR.
• Master title — the developer's overarching title before strata/individual titles are issued. See title types explained.
• MOT (Memorandum of Transfer) — the instrument that transfers ownership; stamp duty is charged on it. See the true cost of buying.
• MRTA / MLTA — mortgage insurance options. See MRTA vs MLTA.

R

• RPGT (Real Property Gains Tax) — tax on the profit when you sell. See RPGT Malaysia.
• REN / REA / PEA — real estate negotiator / agent / probationary agent. See REN vs REA.

S

• SPA (Sale & Purchase Agreement) — the main contract to buy/sell a property.
• Strata title — title for a parcel in a subdivided building, under the Strata Titles Act 1985. See title types explained.

T

• Tenancy agreement — the rental contract; must be stamped. See tenancy agreement.

V

• Vacant possession — handover of an empty property; not always guaranteed at auction.

Definitions are general and rules change — follow the linked guides for the current detail, and confirm specifics with your lawyer or banker.

New to property? Start with the first-time home buyer guide or, if you're selling, how to sell a house.