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Real Estate Operating Agreement Template for Malaysia

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Key Requirements PROMPT example:

Real Estate Operating Agreement

"I need a Real Estate Operating Agreement for a newly constructed shopping mall in Kuala Lumpur, where a professional operator will manage all aspects of the property starting from March 2025, with particular emphasis on retail tenant management and marketing activities."

Document background
The Real Estate Operating Agreement serves as a crucial document in the Malaysian property market, establishing the legal and operational framework for professional property management services. It is typically used when property owners seek to delegate the day-to-day operations of their real estate assets to specialized management companies while maintaining ownership rights. The agreement must comply with Malaysian property laws, including the National Land Code 1965, Valuers, Appraisers and Estate Agents Act 1981, and relevant state legislation. It is particularly important for commercial properties, retail centers, and large-scale residential developments where professional management is essential for maintaining property value and operational efficiency. The document typically includes detailed provisions for operational responsibilities, financial management, maintenance standards, and performance metrics, tailored to the specific requirements of the Malaysian real estate market and local business practices.
Suggested Sections

1. Parties: Identification of the property owner and the operator, including their full legal names, registration numbers, and registered addresses

2. Background: Context of the agreement, property details, and purpose of the operating arrangement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Appointment and Term: Formal appointment of the operator, duration of the agreement, and renewal terms

5. Property Details: Comprehensive description of the property, including legal description and permitted uses

6. Operator's Rights and Obligations: Detailed responsibilities of the operator in managing and operating the property

7. Owner's Rights and Obligations: Responsibilities and obligations of the property owner

8. Financial Terms: Management fees, operating expenses, revenue sharing, and financial reporting requirements

9. Operating Standards: Required standards of operation, maintenance, and service delivery

10. Insurance and Liability: Insurance requirements and allocation of risks between parties

11. Termination: Grounds for termination, notice requirements, and consequences of termination

12. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

13. General Provisions: Standard contractual provisions including notices, amendments, and assignment rights

Optional Sections

1. Environmental Compliance: Required when the property has specific environmental considerations or requirements

2. Staff and Employment: Needed when the operator will be managing on-site staff or taking over existing employees

3. Marketing and Branding: Include when the operator has responsibilities for marketing the property or maintaining brand standards

4. Capital Improvements: Required when the operator has authority to make or recommend capital improvements

5. Competitive Restrictions: Include when there are non-compete or territorial restrictions on either party

6. Force Majeure: Particularly relevant for properties in areas prone to natural disasters or specific risk factors

7. Intellectual Property: Required when the operation involves use of proprietary systems, brands, or methods

Suggested Schedules

1. Property Description Schedule: Detailed legal and physical description of the property, including floor plans and boundaries

2. Services Schedule: Comprehensive list of operational services to be provided by the operator

3. Fee Schedule: Detailed breakdown of all fees, charges, and financial arrangements

4. Key Performance Indicators: Metrics and standards for measuring operator's performance

5. Inventory Schedule: List of furniture, fixtures, and equipment included in the operation

6. Insurance Requirements: Detailed specifications of required insurance coverage

7. Operating Procedures Manual: Standard operating procedures and guidelines

8. Handover Protocol: Procedures for property handover at commencement and termination

9. Reporting Templates: Standard formats for financial and operational reporting

Authors

Alex Denne

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

Relevant legal definitions







































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Relevant Industries

Commercial Real Estate

Residential Property

Retail Property

Industrial Property

Mixed-Use Development

Hospitality

Office Space

Shopping Centers

Logistics Facilities

Healthcare Facilities

Educational Facilities

Data Centers

Relevant Teams

Legal

Operations

Property Management

Asset Management

Facilities Management

Compliance

Finance

Real Estate

Contract Administration

Risk Management

Business Development

Relevant Roles

Property Manager

Real Estate Operations Director

Asset Manager

Facilities Manager

Legal Counsel

Real Estate Investment Manager

Operations Manager

Property Development Manager

Contract Administrator

Chief Operating Officer

Real Estate Portfolio Manager

Building Manager

Compliance Officer

Financial Controller

Property Services Director

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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