The Offer to Purchase Agreement is a crucial initial document in Malaysian property transactions, used when a potential buyer wishes to formalize their intention to purchase a property. This document is particularly important in the Malaysian real estate market as it creates a preliminary binding arrangement between parties while allowing for necessary due diligence and financing arrangements. The agreement typically precedes the full Sale and Purchase Agreement and includes key information such as property details, purchase price, payment terms, and conditions precedent. It is governed by Malaysian contract law, particularly the Contracts Act 1950, and must comply with requirements under the National Land Code 1965. The document is commonly used in both residential and commercial property transactions, providing protection for both buyer and seller during the initial stages of the property purchase process.
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1. Parties: Identification and details of the Purchaser making the offer and the Vendor receiving it
2. Background: Context of the transaction and brief description of the property being offered to purchase
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 location
5. Purchase Price: The offered purchase price and payment terms including deposit amount
6. Payment Terms: Detailed breakdown of payment schedule, method of payment, and timing
7. Conditions Precedent: Conditions that must be fulfilled before the agreement becomes binding
8. Due Diligence: Period and scope of property and title investigations
9. Completion: Requirements and procedures for completing the purchase
10. Default and Termination: Consequences of default and circumstances for termination
11. Representations and Warranties: Standard warranties about property ownership and condition
12. Notices: How formal communications between parties should be made
13. Governing Law: Specification of Malaysian law as governing law and jurisdiction
14. Execution: Signature blocks and execution formalities
1. Strata Title Provisions: Required if the property is a strata-titled property, covering management fees and sinking funds
2. Renovation Terms: Include if the buyer wishes to renovate before completion or if there are ongoing renovations
3. Tenancy Provisions: Required if the property is currently tenanted or if there are existing leases
4. Banking Facilities: Include if the purchase is contingent on obtaining bank financing
5. Agent Commission: Required if real estate agents are involved in the transaction
6. Property Condition: Detailed provisions about property condition if selling as-is or with specific defects
7. GST Provisions: Required if the transaction is subject to Goods and Services Tax
1. Schedule 1 - Property Details: Detailed property description, including land area, boundaries, and title particulars
2. Schedule 2 - Payment Schedule: Detailed breakdown of payment terms, amounts, and due dates
3. Schedule 3 - Inventory List: List of fixtures, fittings, and furniture included in the sale if applicable
4. Schedule 4 - Outstanding Charges: List of any outstanding charges, taxes, or assessments on the property
5. Appendix A - Property Documents: Copies of title documents, strata title (if applicable), and other relevant certificates
6. Appendix B - Property Plans: Floor plans, location maps, and other relevant property drawings
7. Appendix C - Due Diligence Checklist: Checklist of required documents and investigations for due diligence
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