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Promissory Sale And Purchase Agreement for Malaysia

Promissory Sale And Purchase Agreement Template for Malaysia

A Promissory Sale and Purchase Agreement under Malaysian law is a legally binding document that outlines the terms and conditions for the sale and purchase of property in Malaysia. This agreement serves as a formal commitment between the vendor and purchaser, detailing the purchase price, payment terms, completion timeline, and respective obligations of the parties. The document must comply with Malaysian property laws, including the National Land Code 1965 and the Contracts Act 1950, and typically includes provisions for property transfer, warranties, and default remedies. It provides essential protection for both parties and serves as the primary document governing the property transaction.

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Promissory Sale And Purchase Agreement

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What is a Promissory Sale And Purchase Agreement?

The Promissory Sale and Purchase Agreement is a crucial document in Malaysian property transactions, used when parties wish to formalize their commitment to a property sale and purchase before the final transfer. It is particularly relevant in both residential and commercial property transactions where parties need to establish clear terms and conditions for the sale, including payment schedules, property specifications, and completion requirements. The agreement must comply with Malaysian property laws and regulations, including the National Land Code 1965, Contracts Act 1950, and relevant property development regulations. This document is essential for protecting both parties' interests and ensuring a smooth property transaction process, often serving as the foundation for subsequent property transfer documents and financing arrangements.

What sections should be included in a Promissory Sale And Purchase Agreement?

1. Parties: Identification and details of the Vendor and Purchaser

2. Background: Context of the transaction and brief description of the property being sold

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

4. Sale and Purchase: Core agreement to sell and purchase the property at the agreed price

5. Purchase Price: Detailed breakdown of the purchase price and payment schedule

6. Payment Terms: Terms and conditions of payment, including deposit and balance payment arrangements

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

8. Vendor's Obligations: Responsibilities and warranties of the seller

9. Purchaser's Obligations: Responsibilities and undertakings of the buyer

10. Completion: Process and requirements for completing the sale and transfer of property

11. Title and Transfer: Provisions regarding property title and transfer procedures

12. Default: Consequences and remedies in case of default by either party

13. Notices: Requirements for giving notices under the agreement

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

What sections are optional to include in a Promissory Sale And Purchase Agreement?

1. Property Development Status: Required for properties under construction, detailing development timeline and obligations

2. Bank Financing: Include when purchaser requires bank financing, detailing loan conditions and requirements

3. Strata Title: Required for apartments/condominiums where strata title is involved

4. Third Party Consent: Include when the sale requires consent from third parties (e.g., authorities, existing chargees)

5. Tenancy: Include when the property is subject to existing tenancy

6. Special Conditions: For any unique requirements specific to the transaction

7. GST/Tax Provisions: Required when specific tax arrangements need to be addressed

What schedules should be included in a Promissory Sale And Purchase Agreement?

1. Property Description Schedule: Detailed description of the property including lot number, title details, and measurements

2. Payment Schedule: Detailed breakdown of payment installments and due dates

3. Property Inventory: List of fixtures, fittings, and other items included in the sale

4. Title Particulars: Copy of land title or strata title details

5. Property Plans: Floor plans, location maps, and other relevant property drawings

6. Defects List: List of existing defects acknowledged by both parties

7. Completion Documents: List of documents required for completion

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

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions
























Clauses































Relevant Industries

Real Estate

Property Development

Banking and Finance

Construction

Legal Services

Property Investment

Commercial Property

Residential Property

Industrial Property

Hospitality

Relevant Teams

Legal

Real Estate

Property Management

Compliance

Finance

Operations

Commercial

Risk Management

Business Development

Corporate Secretarial

Relevant Roles

Legal Counsel

Property Manager

Real Estate Agent

Property Developer

Contract Manager

Compliance Officer

Real Estate Lawyer

Property Investment Manager

Business Development Manager

Finance Manager

Operations Director

Commercial Director

Property Portfolio Manager

Risk Manager

Company Secretary

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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