Document background
The Offer To Purchase Contract is a crucial document in Malaysian property transactions that initiates the formal property acquisition process. It is typically used when a potential buyer has identified a property of interest and wishes to formalize their intention to purchase before proceeding with a full Sale and Purchase Agreement. This document, compliant with Malaysian property and contract law, includes essential information such as property details, proposed purchase price, payment terms, and any conditions precedent. It provides protection for both parties by clearly stating the terms of the proposed transaction and the timeline for acceptance. The document is particularly important in Malaysian real estate transactions as it can serve as a binding agreement once accepted by the vendor, subject to the fulfillment of any conditions precedent. It forms the foundation for the subsequent Sale and Purchase Agreement and is often required by financial institutions as part of the loan application process.
