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Offer To Purchase Agreement for Malaysia

Offer To Purchase Agreement Template for Malaysia

A Malaysian Offer to Purchase Agreement is a formal legal document that initiates the property purchase process under Malaysian law. It represents the potential buyer's formal intention to purchase a property and outlines the key terms and conditions of the proposed transaction. The document, governed by Malaysian contract law and property regulations, includes essential details such as the property description, purchase price, payment terms, conditions precedent, and completion requirements. It serves as a preliminary binding agreement subject to conditions, forming the basis for the subsequent Sale and Purchase Agreement.

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Offer To Purchase Agreement

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What is a Offer To Purchase Agreement?

The Offer to Purchase Agreement is a crucial initial document in Malaysian property transactions, used when a potential buyer wishes to formalize their intention to purchase a property. This document is particularly important in the Malaysian real estate market as it creates a preliminary binding arrangement between parties while allowing for necessary due diligence and financing arrangements. The agreement typically precedes the full Sale and Purchase Agreement and includes key information such as property details, purchase price, payment terms, and conditions precedent. It is governed by Malaysian contract law, particularly the Contracts Act 1950, and must comply with requirements under the National Land Code 1965. The document is commonly used in both residential and commercial property transactions, providing protection for both buyer and seller during the initial stages of the property purchase process.

What sections should be included in a Offer To Purchase Agreement?

1. Parties: Identification and details of the Purchaser making the offer and the Vendor receiving it

2. Background: Context of the transaction and brief description of the property being offered to purchase

3. Definitions: Definitions of key terms used throughout the agreement

4. Property Details: Comprehensive description of the property including lot number, title details, and exact location

5. Purchase Price: The offered purchase price and payment terms including deposit amount

6. Payment Terms: Detailed breakdown of payment schedule, method of payment, and timing

7. Conditions Precedent: Conditions that must be fulfilled before the agreement becomes binding

8. Due Diligence: Period and scope of property and title investigations

9. Completion: Requirements and procedures for completing the purchase

10. Default and Termination: Consequences of default and circumstances for termination

11. Representations and Warranties: Standard warranties about property ownership and condition

12. Notices: How formal communications between parties should be made

13. Governing Law: Specification of Malaysian law as governing law and jurisdiction

14. Execution: Signature blocks and execution formalities

What sections are optional to include in a Offer To Purchase Agreement?

1. Strata Title Provisions: Required if the property is a strata-titled property, covering management fees and sinking funds

2. Renovation Terms: Include if the buyer wishes to renovate before completion or if there are ongoing renovations

3. Tenancy Provisions: Required if the property is currently tenanted or if there are existing leases

4. Banking Facilities: Include if the purchase is contingent on obtaining bank financing

5. Agent Commission: Required if real estate agents are involved in the transaction

6. Property Condition: Detailed provisions about property condition if selling as-is or with specific defects

7. GST Provisions: Required if the transaction is subject to Goods and Services Tax

What schedules should be included in a Offer To Purchase Agreement?

1. Schedule 1 - Property Details: Detailed property description, including land area, boundaries, and title particulars

2. Schedule 2 - Payment Schedule: Detailed breakdown of payment terms, amounts, and due dates

3. Schedule 3 - Inventory List: List of fixtures, fittings, and furniture included in the sale if applicable

4. Schedule 4 - Outstanding Charges: List of any outstanding charges, taxes, or assessments on the property

5. Appendix A - Property Documents: Copies of title documents, strata title (if applicable), and other relevant certificates

6. Appendix B - Property Plans: Floor plans, location maps, and other relevant property drawings

7. Appendix C - Due Diligence Checklist: Checklist of required documents and investigations for due diligence

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Malaysia

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions





























Clauses
























Relevant Industries

Real Estate

Property Development

Banking and Finance

Legal Services

Construction

Commercial Property

Residential Property

Property Investment

Real Estate Investment Trusts (REITs)

Property Management

Relevant Teams

Legal

Real Estate

Compliance

Property Management

Sales

Finance

Risk Management

Property Development

Investment

Operations

Relevant Roles

Real Estate Agent

Property Lawyer

Conveyancing Executive

Property Manager

Real Estate Developer

Bank Manager

Property Valuer

Legal Counsel

Compliance Officer

Real Estate Investment Manager

Property Portfolio Manager

Real Estate Broker

Transaction Manager

Real Estate Analyst

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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