The Real Estate Development Contract serves as the primary agreement between developers, landowners, and other stakeholders in property development projects within Malaysia. This document is essential for projects falling under the Housing Development (Control and Licensing) Act 1966 and must comply with various Malaysian regulations including the National Land Code 1965, environmental regulations, and local authority requirements. It outlines development rights, construction specifications, timelines, payment terms, and quality standards while addressing both conventional and Shariah-compliant development structures. The contract is particularly crucial for managing complex development projects, establishing clear responsibilities, and ensuring regulatory compliance in Malaysia's unique legal environment.
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1. Parties: Identification of the developer and landowner/client, including registration details and addresses
2. Background: Context of the development project, including property details and development objectives
3. Definitions: Detailed definitions of terms used throughout the contract
4. Project Scope: Detailed description of the development project, including specifications and deliverables
5. Development Timeline: Project schedule, milestones, and completion dates
6. Development Approvals: Requirements for obtaining necessary permits, licenses, and regulatory approvals
7. Contract Sum and Payment Terms: Pricing, payment schedule, and financial terms
8. Developer's Obligations: Comprehensive list of developer's responsibilities and commitments
9. Client's Obligations: Responsibilities and obligations of the landowner/client
10. Quality Standards: Construction and development quality requirements and applicable standards
11. Variations: Procedures for handling changes to scope or specifications
12. Defects Liability: Terms regarding defects identification and rectification
13. Insurance and Securities: Required insurance coverage and performance securities
14. Force Majeure: Provisions for unforeseen circumstances and their handling
15. Termination: Grounds and procedures for contract termination
16. Dispute Resolution: Procedures for handling disputes and jurisdiction
17. General Provisions: Standard boilerplate clauses including notices, assignment, and amendments
1. Islamic Finance Compliance: Required when project involves Shariah-compliant financing
2. Environmental Management: Detailed environmental obligations when project requires EIA
3. Sales and Marketing: Include when developer is responsible for property sales
4. Strata Management: Required for stratified development projects
5. Community Facilities: Include when development includes public or shared facilities
6. Phased Development: Required for projects developed in multiple phases
7. Government Subsidies: Include when project involves affordable housing or government incentives
1. Property Details: Legal description of land, title details, and site plans
2. Development Plans: Approved architectural drawings and development plans
3. Technical Specifications: Detailed construction and material specifications
4. Payment Schedule: Detailed breakdown of payment milestones and amounts
5. Project Timeline: Detailed project schedule with milestones
6. Required Approvals: List of required permits and approvals
7. Quality Standards: Detailed quality requirements and testing procedures
8. Form of Securities: Templates for performance bonds and other securities
9. Insurance Requirements: Detailed insurance coverage requirements
10. Environmental Requirements: Environmental compliance and protection measures
Relevant legal definitions
Clauses
Relevant Industries
Real Estate
Construction
Property Development
Infrastructure
Urban Planning
Architecture
Engineering
Environmental Services
Banking and Finance
Legal Services
Relevant Teams
Legal
Property Development
Construction
Finance
Compliance
Risk Management
Operations
Project Management
Technical Services
Environmental
Corporate Strategy
Procurement
Relevant Roles
Project Director
Development Manager
Construction Manager
Legal Counsel
Contract Manager
Property Director
Compliance Officer
Risk Manager
Financial Controller
Technical Director
Environmental Manager
Operations Director
Chief Executive Officer
Chief Financial Officer
Project Architect
Quantity Surveyor
Urban Planner
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