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The Option To Purchase Agreement is a crucial document in Malaysian property transactions, commonly used when a potential buyer needs time to secure financing or conduct due diligence before committing to a purchase. It provides the Option Holder with exclusive rights to purchase the property within a specified period while protecting the Option Grantor through an option fee. The agreement must comply with Malaysian legislation, including the Contracts Act 1950, National Land Code 1965, and Stamp Act 1949. It typically includes detailed property descriptions, purchase price, option period duration, exercise mechanisms, and conditions precedent. This document is particularly valuable in commercial property transactions, development projects, or situations where parties need to secure their interests while finalizing financing or conducting investigations.

1. Parties: Identifies and defines the Option Grantor and Option Holder with their full legal names, registration numbers (if companies), and addresses

2. Background: Sets out the context of the agreement, including brief description of the property and the parties' intention to enter into an option arrangement

3. Definitions: Defines key terms used throughout the agreement including 'Option', 'Option Period', 'Purchase Price', 'Property', and 'Completion Date'

4. Grant of Option: Details the grant of the option, option fee, and duration of the option period

5. Exercise of Option: Specifies the procedure and requirements for exercising the option, including notice requirements and payment terms

6. Purchase Price: States the agreed purchase price for the property and payment terms including deposits and balance payment

7. Property Details: Comprehensive description of the property including title details, land area, and any encumbrances

8. Conditions Precedent: Lists any conditions that must be fulfilled before the option can be exercised

9. Representations and Warranties: Standard warranties about property ownership, authority to sell, and condition of the property

10. Termination: Circumstances under which the agreement may be terminated and consequences of termination

11. Costs and Stamp Duty: Allocation of legal costs, stamp duty, and other expenses

12. Notices: Specifies how and where notices must be served between parties

13. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and severability