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Real Estate Purchase Contract Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that facilitates the transfer of real estate property from a vendor to a purchaser. This document incorporates requirements under the National Land Code 1965 and other relevant Malaysian property laws, detailing the terms and conditions of the property sale, including purchase price, payment terms, completion requirements, and obligations of both parties. It includes specific provisions for property transfer in Malaysia, addressing local requirements such as land office registration, stamp duty considerations, and where applicable, requirements for foreign ownership approval.

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What is a Real Estate Purchase Contract?

The Real Estate Purchase Contract is a fundamental legal document used in Malaysian property transactions to formalize the sale and purchase of real estate. It serves as the primary agreement between vendors and purchasers, incorporating essential elements required under Malaysian law, particularly the National Land Code 1965 and Contracts Act 1950. This document is crucial for both residential and commercial property transactions in Malaysia, ensuring compliance with local property regulations, stamp duty requirements, and foreign investment restrictions where applicable. The contract typically includes detailed property descriptions, payment terms, conditions precedent, completion requirements, and specific provisions for property transfer in the Malaysian context. It's designed to protect both parties' interests while ensuring the transaction meets all legal requirements for property transfer in Malaysia.

What sections should be included in a Real Estate Purchase Contract?

1. Parties: Identification of the Vendor and Purchaser with full legal names, identification numbers, and addresses

2. Background: Brief context of the transaction and property ownership status

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

4. Property Details: Complete legal description of the property including title details, lot number, and land area

5. Purchase Price: Agreed purchase price and payment structure

6. Payment Terms: Detailed payment schedule, deposit requirements, and completion payment terms

7. Conditions Precedent: Conditions that must be fulfilled before completion of the sale

8. Vendor's Obligations: Responsibilities and warranties of the seller including delivering vacant possession

9. Purchaser's Obligations: Responsibilities of the buyer including payment obligations and due diligence

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

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

12. Notices: Method and addresses for serving notices between parties

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

What sections are optional to include in a Real Estate Purchase Contract?

1. Strata Title Provisions: Required when the property is a strata-titled unit, including maintenance fees and sinking fund obligations

2. Construction Terms: Needed for properties under construction, including completion timelines and defect liability period

3. Foreign Ownership Approval: Required when the purchaser is a foreign national or entity

4. Bank Financing: Terms related to purchaser's financing arrangements when property is bought with bank loan

5. Tenancy Provisions: Required when property is sold with existing tenancy

6. Property Management: Needed for properties in managed developments with shared facilities

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

8. Special Conditions: Any unique terms specific to the transaction or property

What schedules should be included in a Real Estate Purchase Contract?

1. Schedule 1 - Property Description: Detailed description of the property including boundaries, fixtures, and fittings

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

3. Schedule 3 - Title Particulars: Copy of land title or strata title details

4. Schedule 4 - Inventory List: List of included furnishings or fittings if applicable

5. Appendix A - Property Documents: Copies of relevant property documents including land search, quit rent receipts

6. Appendix B - Plans and Drawings: Property plans, layout drawings, and location maps

7. Appendix C - Regulatory Approvals: Copies of relevant permits and approvals

8. Appendix D - Form 14A: Prescribed transfer form under National Land Code

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

Jurisdiction

Malaysia

Document Type

Service Agreement

Cost

Free to use

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