The Commercial Real Estate Sales Contract is a fundamental legal instrument used in Malaysian property transactions for the transfer of commercial real estate ownership. It is essential when any business entity or individual wishes to purchase or sell commercial property in Malaysia, whether for investment, business operations, or development purposes. The document must comply with Malaysian legal requirements, including the National Land Code 1965, Contracts Act 1950, and relevant state legislation. It includes crucial elements such as property details, purchase price, payment terms, conditions precedent, warranties, and completion procedures. The agreement also addresses specific local requirements such as bumiputera quotas where applicable, foreign investment restrictions, and state authority approvals. This document is particularly important as it forms the basis for the property transfer registration at the land office and determines the parties' rights and obligations throughout the transaction process.
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1. Parties: Identification of the Vendor and Purchaser with full legal names, registration numbers (if companies), and addresses
2. Background: Brief context of the transaction and confirmation of Vendor's ownership and authority to sell
3. Definitions: Definitions of key terms used throughout the agreement
4. Sale and Purchase: Core agreement to sell and purchase the property at the specified price
5. Property Description: Detailed description of the property including land title details, lot number, and built-up area
6. Purchase Price: Agreed purchase price and payment structure including deposit and balance payment terms
7. Conditions Precedent: Conditions that must be fulfilled before completion, including due diligence and approvals
8. Completion: Completion procedures, timing, and requirements for both parties
9. Vendor's Warranties: Warranties regarding property title, condition, and encumbrances
10. Purchaser's Warranties: Warranties regarding capacity to purchase and source of funds
11. Title and Transfer: Provisions regarding transfer of title and registration requirements
12. Default and Termination: Consequences of default and termination rights
13. Costs and Taxes: Allocation of transaction costs, stamp duty, and real property gains tax
14. Notices: Method and addresses for serving notices
15. Governing Law: Confirmation of Malaysian law as governing law and jurisdiction
16. Execution: Signature blocks and execution requirements
1. Existing Tenancies: Required when the property has existing tenants, addressing handover of tenancies and rental deposits
2. Development Restrictions: Needed when the property is subject to specific development or use restrictions
3. Foreign Investment Approval: Required for foreign purchasers, addressing Economic Planning Unit approval requirements
4. Property Management: Needed for properties in managed developments, addressing service charges and sinking funds
5. Environmental Matters: Required when environmental issues or compliance are relevant to the property
6. Planning Permissions: Needed when specific planning permissions or changes of use are required
7. Asset and Equipment: Required when the sale includes significant fixtures, fittings, or equipment
8. Intellectual Property: Needed when the sale includes trading names or other IP associated with the property
1. Property Schedule: Detailed property information including title particulars, land area, and building specifications
2. Payment Schedule: Detailed breakdown of payment terms, installments, and timing
3. Completion Requirements: List of documents required for completion from both parties
4. Existing Tenancies Schedule: Details of all existing tenancies including terms and rental amounts
5. Fixtures and Fittings: Inventory of included and excluded fixtures and fittings
6. Title Conditions: Copy of title conditions, restrictions, and easements
7. Property Plans: Certified plans showing property boundaries and building layouts
8. Due Diligence Results: Summary of key due diligence findings and outstanding matters
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Commercial Property Development
Retail
Industrial
Manufacturing
Financial Services
Hospitality
Healthcare
Education
Logistics
Professional Services
Technology
Relevant Teams
Legal
Real Estate
Finance
Compliance
Operations
Risk Management
Facilities Management
Business Development
Investment
Asset Management
Relevant Roles
Chief Executive Officer
Chief Financial Officer
Real Estate Director
Property Manager
Legal Counsel
Commercial Director
Investment Manager
Asset Manager
Facilities Manager
Development Director
Finance Manager
Real Estate Analyst
Risk Manager
Compliance Officer
Operations Director
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