Buy Back Option Contract Template for Malaysia

The Buy Back Option Contract is a specialized agreement used in Malaysian property transactions where parties wish to establish a contractual right for future repurchase of property. This document is particularly relevant in situations involving property investment strategies, development projects, or financial restructuring arrangements. It provides a framework for the option mechanism, including specific terms for exercise periods, pricing mechanisms, and completion requirements. The agreement must comply with Malaysian legal requirements, including the Contracts Act 1950 and the National Land Code 1965, while addressing practical considerations such as property maintenance during the option period and conditions for exercise. This type of contract is commonly used in both commercial and residential property transactions, offering flexibility for investors and property owners while providing legal certainty for all parties involved.

1. Parties: Identification of the parties entering into the agreement, including full legal names, registration numbers for companies, and addresses

2. Background: Context of the transaction, including the original sale and the agreement to grant a buy-back option

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules for interpreting the contract

4. Grant of Option: Explicit grant of the buy-back option, including the property subject to the option

5. Option Period: Duration for which the option is valid and exercisable

6. Option Price: The agreed price at which the property can be bought back, including any adjustment mechanisms

7. Exercise of Option: Process and requirements for exercising the option, including notice requirements

8. Completion: Terms and conditions for completing the buy-back transaction once the option is exercised

9. Payment Terms: Details of how and when payments are to be made, including any deposits

10. Property Condition: Requirements regarding the condition in which the property must be maintained and returned

11. Representations and Warranties: Statements of fact and promises made by each party

12. Termination: Circumstances under which the agreement can be terminated

13. Notices: How formal communications between parties should be made and delivered

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

15. General Provisions: Standard boilerplate clauses including entire agreement, amendments, and severability