Real Property Sales Contract for Malaysia

Real Property Sales Contract Template for Malaysia

A comprehensive legal document governed by Malaysian law that facilitates the transfer of real property ownership from a vendor to a purchaser. This contract outlines the terms and conditions of the property sale, including purchase price, payment terms, property details, and obligations of both parties. It incorporates requirements from the National Land Code 1965 and other relevant Malaysian property legislation, ensuring compliance with local property transfer regulations, stamp duty requirements, and registration procedures. The document includes provisions for title verification, condition precedents, completion requirements, and remedies in case of default.

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What is a Real Property Sales Contract?

The Real Property Sales Contract is a fundamental legal instrument used in Malaysian property transactions to formalize the transfer of real estate ownership. This document is essential when any party wishes to purchase or sell property in Malaysia, whether residential, commercial, or industrial. It must comply with Malaysian property law, particularly the National Land Code 1965, Contracts Act 1950, and Stamp Act 1949. The contract typically includes comprehensive details about the property, parties involved, purchase price, payment terms, conditions precedent, and completion requirements. It's particularly important as it forms the basis for property registration with the land office and determines the rights and obligations of both vendor and purchaser. The document must also account for specific Malaysian requirements such as bumiputera quotas, foreign ownership restrictions, and where applicable, Islamic finance principles.

What sections should be included in a Real Property Sales Contract?

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

2. Background: Context of the sale and brief description of the property being transferred

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

4. Property Details: Comprehensive description of the property including title details, lot number, and land office registration details

5. Purchase Price: Agreed purchase price and payment terms including deposit and completion amounts

6. Payment Terms: Detailed breakdown of payment schedule, method of payment, and consequences of default

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

8. Vendor's Obligations: Responsibilities and warranties of the vendor including title guarantee and property condition

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

10. Completion: Requirements and procedure for completion of the sale

11. Title and Transfer: Provisions regarding transfer of title and registration requirements

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

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

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

What sections are optional to include in a Real Property Sales Contract?

1. Tenancy: Required if the property is currently tenanted, describing arrangements with existing tenants

2. Strata Title: Required for apartments or condominiums, including management corporation details and maintenance fees

3. Foreign Investment Approval: Required if the purchaser is a foreign national or company

4. Property Financing: Required if the purchase is contingent on obtaining financing

5. Islamic Finance Provisions: Required if the transaction involves Shariah-compliant financing

6. Development Orders: Required if the property is part of an ongoing development or has pending development orders

7. Restrictions in Interest: Required if the land has special restrictions (e.g., Malay Reserve Land)

8. Vacant Possession: Required if immediate vacant possession is part of the agreement

What schedules should be included in a Real Property Sales Contract?

1. Property Schedule: Detailed description of the property including boundaries, area, and title particulars

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

3. Inventory List: List of fixtures, fittings, and furnishings included in the sale

4. Title Conditions: Copy of title conditions, restrictions, and encumbrances

5. Property Plans: Certified plans showing property boundaries and structure

6. Completion Documents: List of documents required for completion

7. Due Diligence Results: Summary of property searches and verification results

8. Vendor's Warranties: Detailed list of warranties provided by the vendor regarding the property

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

Real Estate Investment

Property Management

Islamic Finance

Urban Development

Residential Property

Commercial Property

Relevant Teams

Legal

Real Estate

Property Management

Sales

Compliance

Finance

Business Development

Operations

Risk Management

Document Management

Corporate Services

Relevant Roles

Real Estate Agent

Property Lawyer

Conveyancing Executive

Property Developer

Legal Counsel

Property Manager

Bank Manager

Compliance Officer

Real Estate Investment Manager

Property Valuer

Land Administrator

Title Search Officer

Real Estate Director

Sales Manager

Business Development 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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