Builder Buyer Agreement for Malaysia

Builder Buyer Agreement Template for Malaysia

A legally binding agreement governed by Malaysian law that establishes the terms and conditions between a property developer/builder and a buyer for the construction and purchase of a property. The document complies with the Housing Development (Control and Licensing) Act 1966 and related regulations, outlining construction specifications, payment terms, completion timelines, and quality standards. It includes provisions for defect liability, vacant possession, and warranty terms while ensuring consumer protection under Malaysian property laws.

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What is a Builder Buyer Agreement?

The Builder Buyer Agreement is a crucial document in Malaysian property development that formalizes the relationship between property developers and buyers during the construction and purchase of new properties. This agreement is essential when a property is being sold during the construction phase or before completion, commonly known as a sale off-plan. It must comply with the Housing Development (Control and Licensing) Act 1966 and related Malaysian regulations, which provide strict guidelines on agreement terms, buyer protection, and developer obligations. The document typically includes detailed construction specifications, payment schedules, completion timelines, and quality standards, making it fundamental for both residential and commercial property developments in Malaysia.

What sections should be included in a Builder Buyer Agreement?

1. Parties: Identification of the Builder/Developer and the Buyer with complete details

2. Background: Context of the agreement, including property details and development project information

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

4. Sale and Purchase: Core terms of the property purchase, including price and property details

5. Payment Terms: Schedule of payments, payment methods, and consequences of default

6. Construction Specifications: Detailed specifications of the property to be constructed

7. Construction Timeline: Construction milestones and completion schedule

8. Vacant Possession: Terms and conditions for handover of the completed property

9. Defect Liability Period: Duration and scope of defect liability coverage

10. Warranties and Representations: Builder's warranties regarding construction quality and compliance

11. Rights and Obligations: Detailed responsibilities of both parties

12. Default and Remedies: Consequences and remedies for breach of contract

13. Force Majeure: Provisions for unforeseen circumstances affecting construction

14. Notices: Communication procedures between parties

15. Governing Law: Confirmation of Malaysian law application and jurisdiction

What sections are optional to include in a Builder Buyer Agreement?

1. Strata Title: Required for developments involving strata properties, detailing maintenance fees and management

2. Environmental Compliance: Specific environmental requirements for green buildings or specialized developments

3. Common Facilities: Details of shared facilities in development projects with multiple units

4. Progressive Billing: Detailed billing structure for projects using progressive payment schemes

5. Assignment Rights: Terms for buyer's right to assign the agreement to third parties

6. Insurance: Specific insurance requirements beyond statutory minimums

What schedules should be included in a Builder Buyer Agreement?

1. Schedule A - Property Details: Detailed description of the property including lot number, size, and specifications

2. Schedule B - Payment Schedule: Detailed breakdown of payment stages and amounts

3. Schedule C - Construction Specifications: Technical specifications, materials, and finishing details

4. Schedule D - Floor Plans: Approved architectural plans and layouts

5. Schedule E - Common Facilities: List and details of common facilities and amenities

6. Schedule F - Construction Timeline: Detailed construction milestones and completion dates

7. Appendix 1 - Land Title Documents: Copies of relevant land title documents

8. Appendix 2 - Development Approvals: Copies of development and construction approvals

9. Appendix 3 - Special Conditions: Any special terms or conditions specific to the development

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Construction

Property Development

Architecture

Building Materials

Infrastructure

Urban Development

Residential Property

Commercial Property

Relevant Teams

Legal

Real Estate

Construction

Project Management

Sales

Compliance

Customer Relations

Quality Assurance

Property Management

Contract Administration

Relevant Roles

Property Developer

Construction Manager

Project Manager

Legal Counsel

Real Estate Manager

Contract Administrator

Development Director

Sales Manager

Compliance Officer

Property Manager

Construction Site Supervisor

Quality Control Manager

Customer Relations Manager

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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