Glossary

A Administrator A person empowered by a court to handle the property of the deceased owner with no will.
Advertising A purchased slot in any form of media used to evoke interest in a property that is up for sale or rent.
Agency Fee The fee that the landlord pays to the agent once transactions are closed and the buyer signs the Sale and Purchase Agreement/Tenancy Agreement.
Anchor Tenant A tenant whose main purpose is to attract other tenants to the property.
Apartment A residential space that occupies a part of a building with basic features such as a swimming pool and security. There are fewer facilities in an apartment than in a condominium.
Appraisal Opinion of property value obtained from real estate professionals.
Valuation Formal evaluation of a property conducted by trained and qualified valuers.
Appreciation Increase in value of a property over the time.
B Base Lending Rate (BLR) The minimum rate that banks are allowed to charge for any kind of loan based on a calculation that includes various cost of funds. Please refer here to find the current Base Lending Rates for each bank.
Bungalow A large detached house one to three storeys tall, that can be designed and customised if one buys a ready bungalow lot.
C Capital Gain The profit sum earned by selling a property.
Capital Appreciation Increase in the value of property due to changes in the market or variation in demand and supply.
Caveat A legal warning given to a person who claims an unregistered interest in the property
Certificate of Fitness (CF) A certificate indicating that the property is safe for human occupation
Commercial Property Property used for commercial / business purposes such as office building, retail store, shopping mall, hotel, etc.
Condominium A residential building, the units of which are individually owned, while the common spaces and facilities such as jogging tracks, swimming pools and barbecue pits are owned collectively by the residents.
D Deed A legal document used to transfer the ownership rights of the property from seller to buyer.
Defects Liability Period (DLP) A period within which any defects identified in the property must be repaired by a contractor/developer.
Developer A company that coordinates property building process including architecture, engineering, financing and constructing.
Disbursement Fees Various types of fees related to financing documents
Disposable Income Income remaining after deduction of taxes and social security charges, available to be spent or saved as one wishes.
F Right of First Refusal (RFR) An agreement that gives a specific buyer the right to buy or lease a property before it’s sold to any other buyer.
Freehold A type of ownership in which possession is held for infinite duration unless the property is sold.
Flipper Flippers buy a property for gaining profit by resaling it. Those are usually the properties with the highest capital appreciation / gain in the shortest amount of time. The duration could be from a month to a few years.
G Gated and Guarded Community Communities which have controlled access with security at the entrances and proper fencing around the living premises.
Guarded Residence The communities have people guarding them though not neccesarily have a a proper perimeter fencing around them.
Gross Development Value (GDV) GDV is a figure obtained by calculating the value possible out of the sale of all the units within that proposed development.
Gross Income The figure before the taxes are deducted from the salary.
K Keeper Properties that is hold for many years with the intention of making profit from rentals return higher than 6% are usually high-rise developments such as apartments and condominiums
L Leasehold Land that belongs to the government and is returnable after the expiry of the lease period (99 years), after expires the government can take back the land or lease it further.
Letter of Offer A contract stating the terms of the housing loan package between the borrower(s) and the bank.
Loan Tenure Is a contract given by the bank upon accepting and granting the loan. It explains in detail the terms of the loans which is offered to the borrower.
Lock-In Period The period of time for which the loan is sanctioned to the borrower . By the last date of this tenure the borrower must pay the last equated monthly installment.
M Malay Reserved Land Land that belongs exclusively to the malay natives and can not be sold to any of the other races of Malaysian nationality or foreigners
Margin of Financing (MOF) The amount of money provided by a financial institution based on the market value or purchase price of the house, whichever is lower.
Mortgage Reducing Term Assurance (MRTA) Reduces the tenure of the loan and calculated to meet the outstanding loan amount.
My First Home Scheme (MFHS) Also known as Skim Rumah Pertamaku (SRP), announced in the budget of 2011 it is a scheme that allows the youngsters get 100% loan from the financial instituions when purchasing their first house or residential property
Malaysia My Second Home (MM2H) MM2H is a international residency scheme run by the government of Malaysia, which lets the foreign residents stay in the country with a visa validity of upto 10 years.
N Net Worth The vaue of person’s assets minus liabilities
O Off the Plan A purchase of property from the buyers after having only seen the plan
Overdraft Facility An amount of credit granted based on a fix limit. Provides flexibility of repaying the loan anytime. The interest charged is generally higher than the term loan.
Offer Price The buying price at which the prospective buyer is currently willing to purchase or rent the property.
Open Listing A type of listing agreement in which more than one real estate agent may be employed to sell the property. The owner pays a commission only to the agent who finds the buyer.
P Prepayment Paying all or some part of a loan before its maturity period
Prepayment Penalty The penalty is based on a percentage of the remaining mortgage balance or a certain number of months’ worth of interest.
Prinicpal The base amount borrowed from financial instituitions excluding the interest and other surcharges
Property Refers to the landed properties (like house, apartment,condominium) and land (like bungalow lots)
R Refinancing The penalty is based on a percentage of the remaining mortgage balance or a certain number of months’ worth of interest.
S Sale and Purchase Agreement (SPA) A legal contract that obligates a buyer to buy and a seller to sell a property.
Security The property/valuables given to the financial institution when borrowing the loan. The borrower bears the risk of loosing that property if the loan is not paid back.
T Term Loan A monthly instalment that does not change but each instalment has interest
Title A legal document that establishes the rights of ownership on a property
Tenancy Agreement A legal document containing details about the rental terms
V Vacant Possesion Ownership of an unoccupied property, where the previous owner or tenant has emptied the property.
Vendor The seller of a property
Y Yield The interest earned by an investor on an investment, stated as a percentage of the amount invested.
Z Zero Entry A loan package where borrowers do not have to pay for certain charges such as legal fees, stamp duty and disbursement charges.