15 Property Jargons You Need to Know!

14th, April 2023

First-time Buyer

A first-time buyer is someone who is buying a house for the first time and has never owned any part or all of a property before. These buyers can often receive financial assistance or participate in initiatives designed to help them buy their first property.

Bank Valuation

A bank valuation is a property valuation carried about by banks to determine the value of property. This valuation is an important consideration in home loan offers from banks.

Base Rate

The Base Rate (BR) is now the standard reference rate for banks to determine interest rates for their products, including home loans. It considers the cost of lending money to banks and the minimum interest rate set by Bank Negara Malaysia. Before 2015, it is known as Base Lending Rate (BLR).

Bumi Lot

A Bumi lot is a type of land that is one of the four primary categories of land available for sale in Malaysia. Properties built on Bumi lots can only be sold or leased to Bumiputera citizens. It is possible to apply for a property to be released from these restrictions, but this is often a difficult process.

Common Property

Common property refers to shared areas or facilities within a stratified property, such as a condominium development. These spaces are not owned by any single individual, but rather encompass shared property features such as elevators, parks, gyms, gardens, etc.


Conveyancing is the legal process of transferring ownership of a property from one owner to another. This includes all the necessary steps involved in the sale of a property, from the initial offer to the final exchange of ownership. In simpler terms, conveyancing is the process of selling a property and transferring ownership to the buyer.


A covenant is a condition or agreement that is recorded in the property deed, such as a sales and purchase agreement (SPA), which requires the property owner to follow specific conditions. This could include limitations on when and how the property can be sold.

CTOS Score

A CTOS score is a credit rating determined by the CTOS credit rating agency. It is often used by financial institutions to evaluate the creditworthiness of a borrower, such as someone applying for a home loan.

Debt Service Ratio (DSR)

A Debt Service Ratio (DSR) is a calculation that banks use to determine a borrower's ability to make debt payments. It takes into account the borrower's monthly net income and fixed debts to evaluate their financial situation. Banks use DSR to determine the amount of home loan a borrower can repay.

Defect Liability Period

The Defect Liability Period is a warranty period that starts after a buyer purchases a newly developed property. During this period, the developer is responsible for repairing any defects due to poor construction or not meeting promised standards. The Defect Liability Period lasts for 24 months for individual title properties and 36 months for strata title properties.

Down Payment

Down payment is a lump sum payment made upfront to the seller during the purchase of a property. The minimum payment is 10% of the total purchase price. Buyers can pay more than this figure, and the first part of it may be paid as a 2% earnest deposit

Earnest Deposit

An earnest deposit is a non-refundable payment of typically 1%-2% of the total purchase price made on the purchase of a property to demonstrate the buyer's intention to purchase the property. 

Joint Ownership

Joint ownership is where two or more individuals are named as co-owners on the title of a property.

Legal fees

Legal fees are mandatory payments to legal professionals for legal assistance in the purchase or sale of property, and are legislated by law.

Loan agreement

The Loan Agreement is a formal agreement between a financial institution or bank (lender) and the homebuyer (lendee), which outlines the conditions and terms of a loan. It includes details such as the loan amount, repayment conditions, loan term, and the names of individuals responsible for making payments.

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