| CHARGOR |
The
owner of the property who agreed to charge the
property to the lender as security for repayment
of the loan, usually the
borrower. |
| COLLATERAL SECURITY |
Additional or supporting security given
in addition to the principal
security. |
| COMBINATION LOANS |
Combination of different types of loan
under the same banner to form one loan, ie term
loan and overdraft. Also known as split
loans. |
| COMPLETION |
Completion of a Sale and Purchase
Agreement where against the payment by the
purchaser of the purchase price, the vendor
shall deliver vacant possession of the
property. |
| CONSTRUCTION LOANS |
Specifically granted for the purpose of
constructing a building. |
| CONVEYANCE |
The
legal process for the transferal of ownership of
a property, by way of Transfer (for a property
with title) or Assignment (for a property
without title). |
| CREDIT LIMIT |
Maximum amount a borrower can use from
his loan account at any one
time. |
| DAILY RESTS |
Interest calculated on a daily basis on
the outstanding balance of the account at the
end of each and every day. |
| DEFAULT RATE |
The
rate of interest chargeable in the event of
default by the borrower of his
loan. |
| DEVELOPER’S SALE |
A
property sale between a developer (as the
vendor) and a purchaser. |
| DIRECT DEBIT |
Where the lender debits (deducts) the
payment of the monthly instalments from a
borrower’s bank account by way of a standing
instruction. |
| DISBURSEMENTS |
Incidental costs and expenses to
be incurred by a solicitor in handling a
conveyance for a client, ie land searches,
registration fees, etc. |
| DOCUMENT OF TITLE |
The
title to a property detailing the ownership and
encumbrances of the property. |
| DRAWDOWN |
The
release or payment by the lender of the loan
granted to the loan. |
| DSR |
Debt
Service Ratio, ie the ratio of the amount of the
monthly instalment over net income of the
borrower, which is used by the lenders for its
own credit assessment. |
| ENCUMBRANCE |
A
charge mortgage lien or liability created over a
property as security for a
loan. |
| FIXED RATE LOAN |
A
loan where the rate of interest is fixed for the
term of the loan. |
| FREEHOLD |
The
indefinite tenure of the
property. |
| GUARANTEE |
A
promise made by a third party to pay to the
lender the debt of a borrower. |
| GUARANTOR |
A
person who agrees to be responsible for the
payment of the debt of a
borrower. |
| INTEREST |
The
lender’s charge for the use of
funds. |
| INTEREST ONLY LOANS |
A
loan where the principal is paid back at the end
of the term and only interest is paid during the
term. |
| JOINT AND SEVERAL LIABILITY |
The
liability of joint borrowers and guarantor to a
lender in Malaysia generally is joint and
several, meaning each of them are liable to pay
to the lender the loan in full. If one of the
borrowers or guarantors does not pay, the
remaining borrower(s) or guarantor(s) is/are
liable to pay the loan in full. |
| LEASEHOLD |
The limited
tenure of the property, usually 99 years from
the date of issuance of the title to the
property. |
| LIEN |
The
right to hold the title to a property as security against a
loan. |
| LINE OF CREDIT FACILITY |
A loan arrangement with a
specified maximum credit limit to which such
loan are drawndown. In Malaysia, banks are only
prepared to grant a line of credit facility to
companies and not individuals. Also known as
revolving credit facility. |
| LOAN |
An
advance of funds from a lender to a borrower on
the agreement that the borrower pays interest on
the loan, plus paying back the initial principal
amount of the loan, at, or over an agreed
time. |
| MARGIN OF FINANCE |
The percentage
of the loan amount over the appraised value or
purchase price of the property. |
| MASTER TITLE |
The title of
the project land upon which a property without
individual title (and all other properties
comprised in that project) is erected
on. |
| MORTGAGE |
A form of security for a loan
usually taken by a lender over a property,
whereby the lender has the right to take
possession and sell the property if the
mortgagor fails to repay the loan.
|
| MORTGAGE BROKER |
A
person or organization marketing numerous loans
from a panel of lenders who will select the best
loan or loans for borrowers. |
| OVERDRAFT |
A
pre-arranged credit limit to which a borrower
may exceed the funds in or credit balance of his
current account. |
| PENALTY FEE |
Imposed on borrowers who
prepay in full or redeem the loan early before
the end of its term. Also known as exit fee or
break cost. |
| POWER OF ATTORNEY |
A
written authorisation to another person namely the attorney, to
perform certain acts for the maker of the power
of attorney. |
| PREPAYMENT |
Extra funds paid into the loan account in
addition to the minimum monthly
instalments. |
| PRINCIPAL |
The
capital sum borrowed on the
loan. |
| PRINCIPAL & INTEREST LOAN |
A
loan in which both the principal and the
interest are to be repaid collectively and
progressively during the term of the
loan. |
| PRIVATE CAVEAT |
A
notice lodged at the land office against a
property with title which will prevent the
registration of any dealing of the property
without the consent of the person lodging the
caveat (ie caveator). |
| PROCESSING FEE |
The
fee charged by a lender to cover or partially
cover the lender’s costs of processing the
loan. |
| REAL ESTATE AGENT |
Person/body authorized to act on
behalf of the vendor, the purchaser and the
owner in the sale, purchase or management of
property. |
| REAL PROPERTY GAINS TAX |
The
tax payable by a vendor on the disposal of his
property calculated on the capital gains
made. |
| REDRAW |
The
ability of a borrower to re-use funds that were
earlier prepaid toward the
loan. |
| REFINANCING |
A
new loan to substitute an existing loan with
funds from the same lender or
another. |
| SALE AND PURCHASE AGREEMENT
|
A
written agreement between a vendor and a
purchaser outlining the terms and conditions for
the sale and purchase of a
property. |
| SECURITY |
An
asset that is to be held by a lender as a
guarantee for the repayment of the loan, usually
a property. |
| STAMP DUTY |
A
government tax on a document. |
| STANDARD VARIABLE RATE LOAN
|
A loan where the interest rate
is pegged to the Base Lending Rate (“BLR”). If
the BLR increases, the applicable interest rate
will naturally increase accordingly and vice
versa. |
| STRATA TITLE |
The
title which gives you ownership of a “premise”
(and not of the whole of a building) of a
larger building, ie apartment, which you may
sell, lease or transfer at your
discretion. |
| SUB-SALE |
A
property sale between a private (individual or
company) vendor and a
purchaser. |
| TERM |
The
tenure or length of a loan. |
| THIRD PARTY SECURITY |
Security provided by a third
party (other than the borrower himself) who may
be the owner of a property offered as security,
which may be created by way of a third party
charge (for a property with title) or a third
party assignment (for a property without title).
|
| TITLE
|
The document of title of a
property with title. |
| TITLE SEARCH |
A
search to be conducted at the land office to
determine the ownership, encumbrances,
restrictions and other conditions of a property
with title. |
| TRANSFER |
The
instrument of transfer or the memorandum of
transfer which is registrable with the land
office that confirms the change of ownership of
a property with title. |
| UNENCUMBERED |
A
property free of all encumbrances, charges and
liabilities. |
| VALUATION REPORT |
A
report of the estimated valuation of a property
as required by the Lender to be prepared by a
licensed valuer. |
| VARIABLE INTEREST RATE |
A
rate of interest that changes in accordance with
the market rates from time to time, normally
pegged to the Base Lending Rate. |
| VENDOR |
A
person selling a property. |
