The Memorandum Of Understanding Between Landowner And Developer is a crucial preliminary document used in Malaysian property development projects to establish the initial framework for collaboration between parties. It is typically employed when a developer has identified a potential development opportunity on privately owned land and needs to formalize preliminary discussions before proceeding with detailed due diligence and definitive agreements. The document, governed by Malaysian law, outlines proposed commercial terms, development concepts, timelines, and responsibilities while maintaining flexibility for future negotiations. It includes both non-binding elements for general terms and binding provisions for specific matters such as confidentiality and exclusivity periods. This MOU serves as a foundation for the subsequent detailed development or joint venture agreement, incorporating considerations from the National Land Code 1965 and other relevant Malaysian property development regulations.
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1. Parties: Identification and details of the Landowner and Developer
2. Background/Recitals: Context of the arrangement, including description of the land and proposed development
3. Definitions and Interpretation: Definitions of key terms and interpretation clauses
4. Purpose and Scope: Clear statement of the MOU's purpose and scope of the proposed development
5. Non-Binding Nature: Clear statement that the MOU is generally non-binding except for specified clauses
6. Proposed Development: Overview of the development concept, proposed use, and preliminary plans
7. Key Commercial Terms: Outline of the proposed commercial arrangement between parties
8. Responsibilities of the Landowner: Key obligations and commitments of the landowner
9. Responsibilities of the Developer: Key obligations and commitments of the developer
10. Timeline and Milestones: Proposed timeline for due diligence, negotiations, and key milestones
11. Conditions Precedent: Conditions that must be satisfied before proceeding to definitive agreements
12. Binding Provisions: Specific provisions that are intended to be legally binding
13. Duration and Termination: Period of validity and circumstances for termination
14. Governing Law and Jurisdiction: Specification of Malaysian law and jurisdiction
15. Execution: Signature blocks and execution details
1. Exclusivity: Optional clause providing the developer exclusive rights to negotiate for a specified period - include when requested by developer
2. Due Diligence: Detailed provisions regarding due diligence process - include for larger developments
3. Costs and Expenses: Allocation of costs during the MOU period - include for complex developments
4. Force Majeure: Provisions for unforeseen circumstances - include for longer-term MOUs
5. Assignment: Rights to assign the MOU - include when developer might need to assign to related entities
6. Dispute Resolution: Detailed dispute resolution procedures - include for high-value developments
7. Third Party Rights: Provisions regarding third party rights - include when other parties might be involved
8. Notices: Formal notice provisions - include for complex or long-term arrangements
1. Land Details: Detailed description of the land including title particulars and encumbrances
2. Conceptual Development Plans: Preliminary plans, drawings, or concepts for the proposed development
3. Commercial Terms: Detailed breakdown of proposed commercial terms and payment structures
4. Timeline: Detailed timeline and milestone dates
5. Due Diligence Requirements: List of required due diligence items and documents
6. Required Approvals: List of anticipated regulatory and planning approvals required
7. Form of Definitive Agreement: Optional outline of key terms for the definitive agreement
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