Property Glossary Malaysia 2026

The developer's legal handover of the completed, vacant unit to the buyer — keys and access granted, ready to occupy. Starts the Defect Liability Period.

The legally binding contract governing a property sale — price, payment schedule, handover date and penalties. Signed within 3 months of booking for new launches.

The legal document that transfers the property title from seller to buyer at the land office. Stamp duty (1%–4% sliding scale) is paid on the MOT.

Tax on the profit when you sell a property. The rate depends on how long you held it — higher in the early years, lower or zero after 5+ years.

Issued by the project architect/engineer to certify the building is complete and safe to occupy. A valid CCC must be in place before Vacant Possession.

The 24-month window after VP during which the developer must repair any defects in workmanship or materials free of charge.

Compensation the developer must pay for late delivery of vacant possession — 10% per annum of the purchase price, calculated daily for the delay period.

The percentage of the property price a bank will lend. First and second home loans are typically up to 90% LTV; the third onwards is capped at 70%.

The share of your monthly income committed to debt repayments. Banks generally approve home loans when total DSR stays roughly within 60%–70%.

Life insurance that settles your outstanding home loan if you pass away. The coverage reduces as the loan balance falls; usually a one-time premium.

Like MRTA but the coverage stays level and often includes cash value — more flexible and portable, typically with higher premiums.

The law protecting buyers of new residential developments in Malaysia — it mandates the standard SPA, the 24-month DLP and LAD for late delivery.

Price per square foot — the standard way to compare property value. Calculated as the price divided by the built-up area in square feet.

The total floor area of a unit measured from the outer walls, including balconies and internal walls. Used to calculate PSF.

Ownership with no time limit — you own the land indefinitely. Generally commands a premium and easier financing than leasehold.

Ownership for a fixed term (commonly 99 years) after which the land reverts to the state unless renewed. Transfers need state consent.

The individual ownership title for a unit in a subdivided building (condos, apartments), covering the unit plus a share of common property.

The single title covering an entire development before individual/strata titles are issued. Buyers transact under it until subdivision completes.

Units reserved for Bumiputera buyers, often with a 5%–10% discount mandated by state policy. Release-to-market rules vary by state.

An annual land tax paid to the state government, based on land size and category.

A local-council tax on the property's annual rental value, billed twice a year for services like rubbish collection and street lighting.

Monthly charges for stratified properties — the maintenance fee covers running costs; the sinking fund builds reserves for major future repairs.

For under-construction property, the bank releases loan payments to the developer in stages tied to construction milestones, per Schedule III of the SPA.

A deposit (often RM1,000–RM5,000) that reserves a new-launch unit while your loan is processed. Deducted from the 10% downpayment on SPA signing.

A government campaign offering stamp-duty exemptions and developer discounts during designated periods to boost home ownership.

The fee paid to a real estate agent — capped at 3% of the sale price (regulated by LPPEH), plus 8% SST. Paid by the seller, or the developer for new launches; buyers pay nothing.