Real Estate Installment Contract for Malaysia

Real Estate Installment Contract Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that facilitates the purchase of real estate through structured installment payments. The document outlines the terms and conditions of the property sale, including detailed payment schedules, property specifications, and obligations of both parties. It incorporates requirements from various Malaysian legislation including the National Land Code 1965, Contracts Act 1950, and relevant property laws, while ensuring compliance with local property transfer regulations and installment payment structures. The agreement provides security for both seller and buyer throughout the installment period until full payment and property transfer is completed.

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What is a Real Estate Installment Contract?

The Real Estate Installment Contract is essential for property transactions in Malaysia where buyers opt to purchase property through structured payments rather than a single lump sum. This document type is commonly used in both residential and commercial property sales, particularly when traditional mortgage financing is not the preferred option. It must comply with Malaysian property law, including the National Land Code 1965 and state-specific regulations. The contract typically includes comprehensive details about the property, payment terms, transfer conditions, and both parties' rights and obligations. It's particularly relevant in developer-buyer transactions, secondary market sales, and situations where seller financing is involved. The document provides legal protection for all parties while ensuring the transaction meets local regulatory requirements.

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

1. Parties: Identification of the seller and purchaser with complete details including name, identification number, and address

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. Property Details: Comprehensive description of the property including lot number, title details, and exact measurements

5. Purchase Price: Total purchase price and breakdown of payment components

6. Payment Terms: Detailed installment schedule, payment amounts, due dates, and payment methods

7. Default and Remedies: Consequences of default in payment and available remedies for both parties

8. Title and Transfer: Conditions regarding transfer of title, including when and how ownership will pass to the purchaser

9. Seller's Representations and Warranties: Warranties regarding property ownership, condition, and encumbrances

10. Purchaser's Covenants: Purchaser's obligations including maintenance, insurance, and use restrictions

11. Completion: Requirements and procedures for completing the transaction

12. Costs and Taxes: Allocation of transaction costs, stamp duty, and other taxes

13. Notices: Methods and addresses for official communications between parties

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

15. General Provisions: Standard contractual provisions including severability, entire agreement, and amendments

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

1. Strata Title Provisions: Required for apartments or condominiums, covering maintenance fees and management corporation rules

2. Developer's Obligations: Needed for new properties or properties under construction

3. Agricultural Land Provisions: Required for agricultural properties, including land use restrictions and requirements

4. Third Party Consent: Required when the property requires approval from authorities or other parties for transfer

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

6. Environmental Provisions: Required for properties with environmental considerations or restrictions

7. Tenant Provisions: Required if the property is currently tenanted

8. Renovation and Alteration: Required when specific renovation terms need to be agreed upon

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

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

2. Schedule 2 - Payment Schedule: Detailed breakdown of installment payments including dates and amounts

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

4. Schedule 4 - Property Condition Report: Current condition of the property and any existing defects

5. Schedule 5 - Encumbrances: List of existing encumbrances, charges, or restrictions on the property

6. Appendix A - Property Plans: Floor plans, location maps, and other relevant property drawings

7. Appendix B - Completion Documents: List of documents required for completion

8. Appendix C - Special Terms: Any special terms or conditions agreed between the parties

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

Sale Agreement

Cost

Free to use
Relevant Industries

Real Estate

Property Development

Banking and Finance

Legal Services

Construction

Property Management

Real Estate Investment

Housing Development

Relevant Teams

Legal

Real Estate

Property Development

Sales

Finance

Compliance

Business Development

Project Management

Operations

Risk Management

Relevant Roles

Real Estate Lawyer

Property Developer

Real Estate Agent

Property Manager

Legal Counsel

Conveyancing Executive

Finance Manager

Contract Administrator

Property Investment Manager

Compliance Officer

Sales Director

Business Development Manager

Land Administrator

Project 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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