--- title: "Top 10 Checklist to Buy a Good Property in Malaysia" description: "Before you pay a deposit in Malaysia, check your loan eligibility, full costs, title and restrictions, the developer or seller, strata fees and defects. 12-point checklist." datePublished: "2026-01-08" dateModified: "2026-01-08" canonical: "https://www.superhomes.my/resources/buying-property-checklist-malaysia" --- # Top 10 Checklist to Buy a Good Property in Malaysia Before you pay any deposit on a Malaysian property, confirm five things: the bank will lend you what you need, you have the full cash (about 15% of the price on a subsale home), the title has no restriction or encumbrance that blocks your purchase, the seller or developer is who they say they are, and the unit's running costs and condition are acceptable. The 12-point checklist below covers each, with the official place to check it. Buying a home is usually the largest financial commitment a Malaysian household makes, and most mistakes happen before the Sale and Purchase Agreement (SPA) is signed: an offer made before loan eligibility is known, a booking fee paid to the wrong party, a Bumiputera lot discovered after the deposit. Use this list in order. The first four items decide whether you can buy at all; the rest decide whether you should buy this particular property. ## The Checklist at a Glance | # | Check | Where to check | Deal-breaker if... | | :--- | :--- | :--- | :--- | | 1 | Loan eligibility and DSR | Two or three banks | No bank pre-approves the amount you need | | 2 | Full upfront cash | Lawyer's fee quote | Cash leaves you with no emergency fund | | 3 | Title type and tenure | Land search (e-Tanah or land office) | Remaining lease is too short for your loan | | 4 | Restrictions on the title | Land search | Bumiputera or Malay reserve lot you cannot buy | | 5 | Encumbrances and caveats | Land search | Undisclosed charge, caveat or prohibition order | | 6 | Seller or developer identity | Title, IC, KPKT licence | Seller is not the registered owner | | 7 | Location and connectivity | Visit at peak hours | Daily commute is unworkable | | 8 | Price against comparables | Listings and transacted prices | Price far above recent transactions | | 9 | Strata fees and management | Management office | Large arrears or depleted sinking fund | | 10 | Physical condition | Inspection | Structural cracks, leaks, termites | | 11 | Future plans nearby | Local plan (Rancangan Tempatan) | Major blocking development planned | | 12 | Offer letter terms | Your lawyer | No loan-refund clause | ## 1. Loan Eligibility and Debt Service Ratio Get indicative approval before you make an offer. Banks assess your **debt service ratio (DSR)**: your total monthly debt repayments, including the new loan, as a share of net income. There is no single legal cap; each bank sets its own limits, often around 60% to 70% for typical incomes, higher for high earners. Bank Negara Malaysia caps the margin of finance at **70% for an individual's third and subsequent housing loans**. (Source: Bank Negara Malaysia macroprudential measures on housing loans; checked 5 Oct 2026.) Our [DSR calculator guide](/resources/housing-loan-dsr-calculator) shows the calculation. Check your CCRIS report from Bank Negara and your CTOS report for errors before you apply, because a missed payment you have forgotten can sink an application. ## 2. The Full Upfront Cash The down payment is not the whole bill. On a RM500,000 subsale home with a 90% loan, budget about RM75,000: - RM50,000 down payment. - RM6,250 SPA legal fee and RM5,625 loan legal fee under the Solicitors' Remuneration Order 2023 scale (1.25% on the first RM500,000), plus 8% service tax of RM950. - RM9,000 memorandum of transfer (MOT) stamp duty: 1% on the first RM100,000, 2% up to RM500,000, 3% up to RM1 million, 4% above. - RM2,250 loan stamp duty at 0.5% of the loan. - About RM1,050 valuation and disbursements. First-time Malaysian buyers of a home up to RM500,000 are exempt from both stamp duties for SPAs signed until 31 December 2027, saving RM11,250 here. (Sources: Solicitors' Remuneration Order 2023; Stamp Act 1949, First Schedule items 27(a) and 32(a); Budget 2026 extension of the first-home exemption; checked 5 Oct 2026.) Add moving, renovation and furniture costs, and keep six months of expenses in reserve. ## 3. Title Type and Tenure Ask for a copy of the title and do an official land search. Check: - **Individual or strata title.** For a condo, confirm whether the strata title has been issued. If not, the transfer runs through the developer by deed of assignment, which takes longer. - **Freehold or leasehold.** Leasehold land in Peninsular Malaysia is usually granted for up to 99 years. Banks may limit financing when the remaining lease is short, commonly when fewer than about 30 years would remain at the end of the loan. - **Category of land use.** It should be "building" (*bangunan*) for a house. Agricultural land with a house on it cannot be financed the same way; see our [land title conversion guide](/resources/land-title-conversion-agricultural-residential-malaysia). ## 4. Restrictions in Interest The title's "restrictions in interest" (*sekatan kepentingan*) section can stop you buying: - **Bumiputera lots** can only be sold to Bumiputera buyers unless the state authority releases the quota or gives consent. - **Malay reserve land** can only be held by Malays under the relevant state enactment. - **State consent** is needed for many leasehold transfers, and adds weeks to the timeline. If you are not eligible, stop here. ## 5. Encumbrances, Caveats and Prohibitions The land search also shows any **charge** (the seller's bank loan, normal and redeemed at completion), **private caveats**, **registrar's caveats** or **prohibitory orders** from a court. A charge is routine. A caveat or prohibitory order needs your lawyer's explanation before you pay anything. ## 6. Who You Are Dealing With - **Subsale:** the person signing must be the registered proprietor on the title, or hold a valid power of attorney or letters of administration. Ask to see their IC. - **New launch:** the developer must hold a valid developer's licence and an advertising and sales permit from the Ministry of Local Government Development (KPKT), and the project should appear in KPKT's records. Check the developer's past projects and any record of abandoned projects. - **Agent:** a registered estate agent (REA) or negotiator (REN) should have a Board of Valuers, Appraisers, Estate Agents and Property Managers (LPPEH) registration number you can verify. Never pay a deposit into a personal account. A subsale earnest deposit should go to the agency's client account or the lawyer as stakeholder. A housing developer may not collect any payment except as provided in the SPA. (Source: Housing Development (Control and Licensing) Regulations 1989, reg. 11(2); checked 5 Oct 2026.) ## 7. Location and Connectivity Visit at the times you would commute, and on a weekend evening. Measure the real door-to-door time to work, school and family. Check flood history with neighbours and the local council. Proximity to a rail station consistently matters to both buyers and tenants in the Klang Valley; compare areas such as [Setapak](/area/kuala-lumpur/setapak), [Bukit Jalil](/area/kuala-lumpur/bukit-jalil) and [Shah Alam](/area/selangor/shah-alam) on what is actually nearby, not what a brochure promises. ## 8. Price Against Comparables Compare the asking price with similar units in the same development and street, and ask your agent or lawyer for recent transacted prices. If you pay well above recent transactions, expect the bank valuation to come in low; see our guide on [what to do when the bank valuation is low](/resources/bank-valuation-low-property-price-malaysia-2026). A quick investor check: gross rental yield = annual rent ÷ price × 100. RM1,800 a month on RM500,000 is 4.3%. Even if you plan to live there, a reasonable yield tells you the price is not detached from local demand. ## 9. Strata Fees, Sinking Fund and Management For condos and gated communities, ask the management body (JMB or MC) for: - The monthly maintenance charge and **sinking fund**, which by law is at least 10% of the maintenance charge. (Source: Strata Management (Maintenance and Management) Regulations 2015, sinking fund contribution of 10% of charges; checked 5 Oct 2026.) - A letter confirming the unit has **no arrears**, because the buyer can inherit unpaid charges in practice if they are not settled at completion. - The latest accounts and AGM minutes. A depleted sinking fund with lift or façade work ahead means special levies. ## 10. Physical Condition For subsale homes, inspect or hire an inspector to look for ceiling stains, wall cracks wider than a hairline, damp, termite trails, sagging roofs, low water pressure and old wiring. Ask what renovation has been done and whether it had council approval. For new homes, the **defect liability period** under the statutory SPA is 24 months from vacant possession, during which the developer must repair defects you report. (Source: Housing Development (Control and Licensing) Regulations 1989, Schedules G and H; checked 5 Oct 2026.) ## 11. Future Plans Nearby Check the local council's local plan (*Rancangan Tempatan*) for zoning around the site. A new rail line can lift values; a high-rise on the empty lot in front of your view, a highway ramp or a commercial zone can cut them. ## 12. The Offer Letter Before signing an offer letter for a subsale home, make sure it states: - The price, earnest deposit (commonly 2% to 3%) and balance deposit to make 10% at SPA. - That the deposit is **refundable in full if your loan is not approved**, ideally for a stated margin such as 90%. - A deadline for signing the SPA. - What fixtures and fittings are included. Our [booking cancellation and refund guide](/resources/how-to-cancel-house-booking-refund-malaysia-2026) explains why the loan clause wording matters. ## Worked Example: Running the Checklist on a RM650,000 Terrace House You like a RM650,000 leasehold terrace in Petaling Jaya. 1. **Loan:** two banks indicate RM585,000 (90%). At an illustrative 4.0% over 35 years that is about RM2,590 a month. Your net income is RM9,000 with RM800 car loan: DSR = (2,590 + 800) ÷ 9,000 = 38%. Comfortable. 2. **Cash:** RM65,000 down payment; SPA legal fee RM7,750 (1.25% × RM500,000 + 1% × RM150,000); loan legal fee about RM7,100; 8% service tax about RM1,190; MOT stamp duty RM13,500 (RM1,000 + RM8,000 + RM4,500); loan stamp duty RM2,925; valuation about RM1,200. Total about **RM98,700**. 3. **Title:** land search shows 99-year lease expiring in 2088, about 62 years left. Banks are comfortable. 4. **Restrictions:** none. 5. **Encumbrances:** one charge to the seller's bank, to be redeemed at completion. Items 1 to 5 pass, so you move on to price and condition before signing the offer. ## FAQs ### Q: What should I check before buying a property in Malaysia? Start with loan eligibility, your full upfront cash and an official land search for title type, tenure, restrictions and encumbrances. Then check the seller or developer, the location at peak hours, price against comparables, strata fees and the physical condition. ### Q: How much cash do I need to buy a RM500,000 house? About RM75,000 for a subsale home with a 90% loan: RM50,000 down payment and about RM25,000 in legal fees, stamp duty, service tax and valuation. First-time buyers exempt from stamp duty need about RM64,000. ### Q: How do I do a land search in Malaysia? Your lawyer usually does it, but you can apply for an official search at the land office or through the state's e-Tanah portal where available, using the title number. It shows the owner, tenure, restrictions, charges and caveats. ### Q: Is leasehold property bad? Not necessarily. Leasehold homes are often cheaper. The risk is a short remaining lease, which can limit financing and resale. Check how many years will be left when your loan ends. ### Q: Can a non-Bumiputera buy a Bumiputera lot? Generally no, unless the state authority releases the unit from the Bumiputera quota or gives consent. Check the title's restrictions in interest before paying a deposit. ### Q: How do I check if a developer is licensed? Ask for the developer's licence and advertising and sales permit numbers, which must appear on advertisements, and check them with KPKT. Look up the developer's completed projects and any abandoned ones. ### Q: What is a good rental yield in Malaysia? Gross yields of 4% to 5% are reasonable for residential property in the Klang Valley. Calculate annual rent divided by price, then subtract maintenance, quit rent and assessment for a net figure. ### Q: Is the booking deposit refundable? Only if the offer letter says so. Insist on a clause refunding the deposit in full if your loan is not approved at the margin you need. ## Related Resources - [How to Buy Your First House in Malaysia](/resources/how-to-buy-first-house-malaysia) - [Buy vs Rent in Malaysia](/resources/buy-vs-rent-malaysia) - [Stamp Duty Malaysia 2026](/resources/stamp-duty-malaysia-2026) - [SPA Agreement Malaysia](/resources/spa-agreement-malaysia)