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Post Possession Agreement for Malaysia

Post Possession Agreement Template for Malaysia

This document is a legally binding agreement used in Malaysian property transactions that enables a buyer to take possession of a property before the completion of the sale and purchase transaction. It outlines the terms and conditions under which early possession is granted, including rights, responsibilities, payment terms, and risk allocation between parties. The agreement must comply with Malaysian property law, particularly the National Land Code 1965 and the Contracts Act 1950, while addressing practical aspects such as utility transfers, maintenance obligations, and insurance requirements during the possession period.

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What is a Post Possession Agreement?

The Post Possession Agreement is a crucial document in Malaysian property transactions where circumstances necessitate early possession of a property before the completion of the sale. This arrangement commonly occurs when buyers need to occupy the property urgently, or when there are delays in financing or documentation that prevent immediate completion of the sale. The agreement protects both parties' interests by clearly defining possession terms, payment obligations, maintenance responsibilities, and risk allocation during the interim period. It must comply with Malaysian property and contract laws, including the National Land Code 1965 and the Contracts Act 1950. The document typically includes detailed provisions for property maintenance, utility payments, insurance requirements, and conditions for termination, making it essential for both residential and commercial property transactions in Malaysia.

What sections should be included in a Post Possession Agreement?

1. Parties: Identification of the seller and buyer, including their full names, registration/identification numbers, and addresses

2. Background: Context of the agreement, including reference to the main sale and purchase agreement and reason for post-possession arrangement

3. Definitions: Key terms used throughout the agreement, including 'Possession Date', 'Property', 'Completion Date', etc.

4. Grant of Possession: Terms under which possession is granted, including start date and duration

5. Consideration: Details of any possession fee, security deposit, or other payments required

6. Buyer's Obligations: Responsibilities of the buyer during possession period, including maintenance, utilities, and compliance with regulations

7. Seller's Rights: Retained rights of the seller during the possession period, including inspection rights

8. Insurance and Risk: Requirements for property insurance and allocation of risk during possession period

9. Utilities and Outgoings: Responsibility for utility connections, payments, and other property-related expenses

10. Default and Remedies: Consequences of breach and available remedies for both parties

11. Termination: Circumstances under which the agreement can be terminated and the consequences

12. Governing Law: Specification of Malaysian law as governing law and jurisdiction for disputes

What sections are optional to include in a Post Possession Agreement?

1. Renovation and Alterations: Used when the buyer wishes to conduct renovations during the possession period, detailing permitted works and conditions

2. Property Management: Required for properties in managed buildings/complexes, addressing compliance with management rules

3. Special Conditions: For unique circumstances specific to the property or parties' requirements

4. Assignment: Include if either party needs the right to assign their rights under the agreement

5. Force Majeure: Optional clause addressing unforeseen circumstances that may affect the possession arrangement

6. Dispute Resolution: Detailed alternative dispute resolution procedures if parties prefer specific mechanisms

7. Third Party Rights: Required if there are any third parties who need rights under the agreement

What schedules should be included in a Post Possession Agreement?

1. Schedule 1 - Property Details: Detailed description of the property including address, title details, and included fixtures/fittings

2. Schedule 2 - Condition Report: Detailed inventory and condition report of the property at the start of possession

3. Schedule 3 - Payment Schedule: Breakdown of all payments including possession fee, deposit, and other charges

4. Schedule 4 - House Rules: If applicable, building management rules or restrictions that apply to the property

5. Appendix A - Handover Form: Template for documenting the physical handover of the property

6. Appendix B - Utility Transfer Forms: Templates for transfer of utility accounts

7. Appendix C - Insurance Requirements: Detailed specifications of required insurance coverage

Authors

Alex Denne

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

Jurisdiction

Malaysia

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions






























Clauses



























Relevant Industries

Real Estate

Property Development

Residential Property

Commercial Property

Industrial Property

Construction

Legal Services

Property Management

Banking and Finance

Relevant Teams

Legal

Real Estate

Property Management

Sales

Compliance

Risk Management

Business Development

Operations

Customer Service

Contract Administration

Relevant Roles

Legal Counsel

Property Manager

Real Estate Agent

Property Developer

Contract Manager

Compliance Officer

Risk Manager

Property Lawyer

Conveyancing Executive

Sales Director

Business Development Manager

Housing Development Officer

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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