The words and acronyms you will hear from developers, lawyers and bankers, explained in plain English. Where there is an article that goes deeper, the term links to it.
Buying and contracts
Booking fee A deposit paid to reserve a unit before the SPA is signed, often 2–3% of the price. Can you get it back? SPA Sale and Purchase Agreement: the contract between buyer and seller (or developer). New launch A property bought from the developer, usually before or during construction. Subsale A property bought from an existing owner. What to watch out for Stakeholder sum Part of the price held by a lawyer until certain conditions are met, such as the end of the defect period. VP (vacant possession) When the developer hands you the keys and the unit is ready to move into. LAD Liquidated ascertained damages: compensation the developer owes you for late delivery. How to claim DLP Defect liability period: usually 24 months after VP, when the developer must fix defects. After the DLP CCC Certificate of Completion and Compliance: confirms the building is complete and fit to occupy.
Titles and tenure
Freehold Ownership with no time limit. Freehold vs leasehold Leasehold Ownership for a fixed term from the state, usually 99 years. Master title The single title for the whole piece of land before individual unit titles are issued. Strata title The individual title for a unit in a condo or apartment building. Individual title The title for a landed property such as a terrace house. MOT Memorandum of Transfer: the document that transfers the title to the buyer. Malay reserve land / Bumiputera lot Land or units reserved for Malays or Bumiputera buyers; foreigners cannot buy them. State consent Approval from the state that non-citizens (and some others) need before the title can be transferred to them.
Costs and taxes
Stamp duty Tax on the transfer document and on the loan agreement. Foreigners pay a flat 8% on residential property from 2026. SRO Solicitors’ Remuneration Order: the official scale for lawyers’ fees. Legal fees explained Quit rent Yearly charge paid to the state land office. Read more Assessment tax Charge paid to the local council, usually twice a year. Maintenance fee and sinking fund Monthly charges in strata properties for upkeep and for future major repairs. RPGT Real property gains tax on the profit when you sell.
Loans
Margin of finance The share of the price the bank will lend, such as 70%. For foreigners DSR Debt service ratio: the share of your income going to debt repayments. DSR explained Flexi / semi-flexi loan Loans that let you pay extra and, for full flexi, withdraw it again. Paying early MRTA / MLTA Mortgage reducing term assurance and mortgage level term assurance: insurance that pays off the loan if the borrower dies or is disabled.
Estates and ownership
Probate Court confirmation that a will is valid and the executor can act. Letters of administration Court appointment of an administrator when there is no will. No will? Tenancy in common How co-owners hold property in Malaysia: each has a separate share. Joint names
Johor and cross-border
CIQ Customs, Immigration and Quarantine: the border checkpoint complex, such as at the JB end of the Causeway. RTS Link The rail shuttle between Bukit Chagar in JB and Woodlands North in Singapore. Read more JS-SEZ The Johor–Singapore Special Economic Zone. Explained MM2H Malaysia My Second Home: a long-term visa programme. MM2H in 2026 REN / REA Registered real estate negotiator / registered estate agent. Check them on the LPPEH register.
General information only. By Jason Lim (REN 84424, IQI Realty Sdn. Bhd. E (1) 1584/6).
Video
Watch Jason explain this From the Smart Asset with Jason YouTube channel.
Two property bills you may not know
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