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Real Estate Option To Purchase Agreement Template for Malaysia

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Key Requirements PROMPT example:

Real Estate Option To Purchase Agreement

"I need a Real Estate Option To Purchase Agreement for a commercial warehouse property in Penang, with a 6-month option period starting March 1, 2025, and specific provisions for conducting environmental assessments before exercise of the option."

Document background
The Real Estate Option To Purchase Agreement is a fundamental document in Malaysian property transactions, used when a potential buyer needs to secure the right to purchase a property while conducting due diligence or arranging financing. This agreement provides the Option Holder with exclusive rights to purchase the property at a predetermined price within a specified timeframe, while protecting the Option Grantor's interests through option fees and clear terms. The document must comply with Malaysian property laws, including the National Land Code 1965 and relevant state land rules, and typically includes detailed property descriptions, payment terms, exercise conditions, and completion requirements. It's particularly valuable in commercial real estate transactions, property development projects, and situations where parties need time to finalize arrangements before completing the purchase.
Suggested Sections

1. Parties: Identification of the Option Grantor (property owner) and Option Holder (potential purchaser), including full names, identification numbers, and addresses

2. Background: Recitals explaining the context of the agreement, including property ownership and parties' intentions

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. Grant of Option: Core terms of the option, including the explicit grant of the right to purchase

5. Option Period: Duration of the option period and any extension provisions

6. Option Fee: Amount of option fee, payment terms, and whether it's refundable or forms part of the purchase price

7. Exercise of Option: Process and requirements for exercising the option, including notice requirements

8. Purchase Price: Agreed purchase price for the property and payment terms

9. Property Condition: Current state of the property and any warranties regarding its condition

10. Title and Ownership: Confirmation of clear title and ownership rights

11. Completion: Requirements and timeline for completing the sale if option is exercised

12. Default and Termination: Consequences of default and circumstances for termination

13. Notices: How formal notices should be given between parties

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

15. Execution: Signature blocks and execution requirements

Optional Sections

1. Multiple Properties: Section dealing with multiple properties under single option - used when option covers more than one property

2. Conditions Precedent: Specific conditions that must be met before option can be exercised - used when there are particular requirements such as planning permission

3. Due Diligence: Provisions for property inspection and investigation - used when detailed investigation period is required

4. Assignment: Rights to assign the option to third parties - used when transferability of option is desired

5. Broker/Agent: Details of any broker or agent involved - used when transaction involves intermediaries

6. Tax Provisions: Specific tax-related terms - used when special tax considerations apply

7. Property Management: Terms for property management during option period - used for commercial properties or when property is occupied

8. Foreign Investment: Additional requirements for foreign buyers - used when option holder is non-Malaysian

Suggested Schedules

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

2. Option Fee Payment Terms: Detailed payment schedule and mechanics for option fee

3. Purchase Price Payment Structure: Breakdown of purchase price payment terms and timeline

4. Property Inventory: List of fixtures, fittings, and items included in the sale

5. Form of Option Exercise Notice: Template notice for exercising the option

6. Due Diligence Documents: List of documents to be provided for due diligence

7. Encumbrances: Details of any existing encumbrances on the property

8. Required Approvals: List of necessary governmental or regulatory approvals

Authors

Alex Denne

Head of Growth (Open Source Law) @ ºÚÁÏÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions





























Clauses






























Relevant Industries

Real Estate

Property Development

Commercial Property

Residential Property

Industrial Property

Retail Property

Hospitality

Mixed-use Development

Urban Development

Construction

Banking and Finance

Legal Services

Relevant Teams

Legal

Real Estate

Property Management

Acquisitions

Development

Compliance

Finance

Investment

Operations

Risk Management

Corporate Affairs

Business Development

Relevant Roles

Real Estate Manager

Property Developer

Legal Counsel

Corporate Lawyer

Property Manager

Real Estate Agent

Real Estate Broker

Land Officer

Acquisition Manager

Development Director

Property Investment Manager

Compliance Officer

Real Estate Partner (Law Firm)

Property Investment Analyst

Chief Real Estate Officer

Real Estate Transaction 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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