¶¶Òõ¶ÌÊÓƵ

The Option and Purchase Agreement is a crucial document in Malaysian property transactions, commonly used when parties wish to secure the possibility of a future property purchase while conducting due diligence or arranging financing. This document type is particularly relevant in commercial real estate transactions, property development projects, and strategic land acquisitions in Malaysia. It provides the option holder with exclusive rights to purchase the property within a specified period, while the property owner receives consideration (option fee) for granting this right. The agreement must comply with Malaysian property and contract laws, including the National Land Code 1965 and Contracts Act 1950, and requires proper stamping under the Stamp Act 1949. It typically includes detailed property descriptions, price terms, option period duration, exercise mechanisms, and completion procedures, offering protection to both parties while maintaining flexibility in property acquisition timing.

1. Parties: Identifies and defines the parties: Grantor (option seller) and Grantee (option buyer)

2. Background: Sets out the context, including brief description of the property and parties' intention to enter into an option arrangement

3. Definitions: Defines key terms used throughout the agreement including Property, Option Period, Option Fee, Purchase Price

4. Grant of Option: Details of the option granted, including duration and exclusivity

5. Option Fee: Specifies the amount of option fee, payment terms, and whether it forms part of the purchase price

6. Exercise of Option: Procedure for exercising the option, including notice requirements and timeframes

7. Purchase Price: States the agreed purchase price and payment terms upon exercise of option

8. Property Details: Comprehensive description of the property including title details and encumbrances

9. Conditions Precedent: Any conditions that must be satisfied before completion can occur

10. Completion: Timeline and procedures for completing the sale after option exercise

11. Representations and Warranties: Standard warranties about property ownership, condition, and authority to sell

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

13. Governing Law and Jurisdiction: Specifies Malaysian law as governing law and jurisdiction for disputes

14. General Provisions: Standard boilerplate clauses including notices, entire agreement, and amendments