Sub Sale Agreement for Malaysia

Sub Sale Agreement Template for Malaysia

A Sub Sale Agreement under Malaysian law is a comprehensive legal document governing the sale and purchase of property between a current owner (not being the developer) and a new buyer. This agreement is crucial in the Malaysian property market as it details all aspects of the property transaction, including payment terms, property specifications, and obligations of both parties. The document must comply with Malaysian property laws, particularly the National Land Code 1965 and the Contracts Act 1950, while incorporating specific requirements for property transfer in Malaysia. It serves as the primary legal instrument for protecting both the vendor's and purchaser's interests throughout the property transfer process.

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What is a Sub Sale Agreement?

The Sub Sale Agreement is a fundamental legal document used in Malaysian property transactions when a property is being sold by its current owner (not the original developer) to a new buyer. This agreement is essential for any secondary property market transaction in Malaysia and must comply with various local regulations including the National Land Code 1965, Housing Development Act 1966, and Contracts Act 1950. The document typically includes detailed information about the property, payment terms, conditions precedent, warranties, and the rights and obligations of both parties. It is particularly important as it provides legal protection for both the vendor and purchaser, ensures proper transfer of property ownership, and addresses specific requirements of Malaysian property law. The Sub Sale Agreement differs from a standard Sale and Purchase Agreement used in developer sales, as it must account for existing property conditions, encumbrances, and potential modifications made by the current owner.

What sections should be included in a Sub Sale Agreement?

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

2. Background: Brief history of the property ownership and context of the sale

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

4. Sale and Purchase: Core agreement to sell and purchase the property at the agreed price

5. Purchase Price: Detailed breakdown of the purchase price and payment terms

6. Property Details: Comprehensive description of the property including title details, land area, and built-up area

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

8. Completion: Timeline and process for completing the sale

9. Vendor's Obligations: Responsibilities and warranties of the seller

10. Purchaser's Obligations: Responsibilities and warranties of the buyer

11. Title and Ownership: Guarantees regarding property title and transfer of ownership

12. Representations and Warranties: Statements of fact and promises by both parties

13. Default and Termination: Consequences of breach and termination provisions

14. Notices: How formal communications between parties should be made

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

What sections are optional to include in a Sub Sale Agreement?

1. Tenant Provisions: Required if the property is currently tenanted, addressing existing tenancy agreements

2. Renovation Works: Include if there are ongoing or planned renovation works

3. Strata Title Provisions: Required for apartments or condominiums under strata title

4. Car Park Provisions: Include if separate car park lots are included in the sale

5. Property Management: Required for properties in managed communities or buildings

6. Furniture and Fittings: Include if the sale includes furniture or fixed fittings

7. Bank Consent: Required if the property has an existing mortgage

8. Developer's Consent: Required if developer's approval is needed for the transfer

9. GST Provisions: Include if GST is applicable to the transaction

What schedules should be included in a Sub Sale Agreement?

1. Schedule 1 - Property Details: Detailed property description, including lot number, title details, and exact measurements

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

3. Schedule 3 - Inventory List: List of furniture, fittings, and items included in the sale (if applicable)

4. Schedule 4 - Title Particulars: Copy of land title or strata title details

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

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

7. Appendix B - Certificates: Relevant certificates including CCC (Certificate of Completion and Compliance)

8. Appendix C - Due Diligence Documents: Copies of relevant searches, approvals, and compliance documents

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

Legal Services

Banking and Finance

Property Management

Construction

Housing Development

Urban Planning

Facilities Management

Relevant Teams

Legal

Real Estate

Property Management

Compliance

Sales

Finance

Risk Management

Operations

Customer Service

Documentation

Relevant Roles

Real Estate Lawyer

Property Manager

Real Estate Agent

Legal Counsel

Conveyancing Executive

Property Valuer

Bank Officer

Compliance Officer

Real Estate Director

Property Investment Manager

Legal Associate

Title Search Specialist

Housing Development Officer

Land Administrator

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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