The Property Agreement Contract is a fundamental legal instrument used in Malaysian property transactions to formalize the transfer of real estate ownership. This document is essential when conducting any property sale or purchase in Malaysia, whether for residential, commercial, or industrial properties. It must comply with Malaysian property laws, including the National Land Code 1965, Contracts Act 1950, and relevant state-specific regulations. The agreement typically includes detailed property descriptions, purchase price, payment terms, conditions precedent, warranties, and completion requirements. It's particularly important as it serves as the primary reference document for the transaction and can be used in legal proceedings if disputes arise. The document must be properly executed and stamped according to Malaysian law to be legally enforceable.
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1. Parties: Identification and details of all parties involved in the agreement, including full legal names, identification numbers, and addresses
2. Background: Context of the agreement, including brief description of the property and purpose of the transaction
3. Definitions: Definitions of key terms used throughout the agreement to ensure clear interpretation
4. Property Details: Comprehensive description of the property including lot number, title details, size, and location
5. Purchase Price: Statement of the agreed purchase price and payment terms including deposit and completion payment details
6. Payment Terms: Detailed breakdown of payment schedule, method of payment, and consequences of default
7. Conditions Precedent: Conditions that must be fulfilled before the agreement becomes fully effective
8. Completion: Requirements and procedures for completing the transaction, including timing and documentation
9. Representations and Warranties: Statements and guarantees made by both parties regarding the property and their capacity to enter into the agreement
10. Rights and Obligations: Detailed responsibilities of each party before, during, and after the transaction
11. Default and Remedies: Consequences of breach and available remedies to the non-defaulting party
12. Governing Law: Specification that Malaysian law governs the agreement and jurisdiction for dispute resolution
13. Execution: Formal signing section including witness requirements
1. Foreign Investment Compliance: Required when buyer is a foreign entity, detailing compliance with Malaysian foreign ownership restrictions
2. Strata Title Provisions: Required for apartments or condominiums, including details about management corporation and service charges
3. Developer's Obligations: Required for new properties or off-plan purchases, detailing construction completion and defect liability
4. Tenancy Provisions: Required if property is sold with existing tenants, detailing treatment of tenancy agreements
5. Bank Financing: Required when purchase involves bank financing, including conditions related to loan approval
6. GST/Tax Provisions: Required when specific tax arrangements need to be detailed, including GST treatment if applicable
7. Property Management: Required for properties in managed communities, detailing management fees and obligations
1. Schedule 1 - Property Details: Detailed property specifications, including floor plans, boundary marks, and title particulars
2. Schedule 2 - Payment Schedule: Detailed breakdown of payment installments and due dates
3. Schedule 3 - Inventory List: List of fixtures, fittings, and furnishings included in the sale
4. Schedule 4 - Title Conditions: Existing encumbrances, restrictions in interest, and other title conditions
5. Schedule 5 - Form of Transfer: Template for the instrument of transfer to be executed at completion
6. Appendix A - Property Documents: Copies of relevant certificates, permits, and approvals
7. Appendix B - Due Diligence Results: Summary of legal and technical due diligence findings
8. Appendix C - Photos and Plans: Visual documentation of the property condition and layout
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