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Rental Promissory Note for Malaysia

Rental Promissory Note Template for Malaysia

A legally binding financial instrument used in Malaysia that combines elements of a promissory note with a rental agreement, governed by the Bills of Exchange Act 1949 and related Malaysian legislation. This document represents a tenant's written promise to pay specified rental amounts according to an agreed schedule, typically used in both residential and commercial rental situations. It includes detailed payment terms, property information, and enforcement provisions, while complying with Malaysian stamp duty requirements and providing legal recourse for the landlord in case of default.

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What is a Rental Promissory Note?

The Rental Promissory Note serves as a crucial financial and legal instrument in Malaysian property transactions, combining the security of a promissory note with specific rental payment obligations. This document type is particularly valuable when landlords require additional payment security beyond the standard rental agreement, or when structuring payment plans for rental arrears. The Rental Promissory Note must comply with Malaysian legislation, including the Bills of Exchange Act 1949, Contracts Act 1950, and relevant property laws. It is commonly used in both residential and commercial contexts, providing landlords with an enforceable instrument that can be more readily actioned in case of default compared to a standard rental agreement. The document typically includes specific property details, payment schedules, and enforcement provisions, making it a valuable tool for property management and rental payment security.

What sections should be included in a Rental Promissory Note?

1. Parties: Identification of the Maker (tenant/promisor) and the Payee (landlord/promisee) with full legal names and addresses

2. Background: Brief context referencing the rental agreement and explaining why the promissory note is being issued

3. Definitions: Key terms used in the document including 'Property', 'Rental Agreement', 'Due Date', and 'Payment Terms'

4. Promise to Pay: Unconditional promise to pay the specified amount(s) with clear payment schedule and total sum

5. Property Details: Description and address of the rental property to which the promissory note relates

6. Payment Terms: Detailed payment schedule, including amounts, due dates, and method of payment

7. Default and Acceleration: Consequences of default and acceleration clause if payments are missed

8. Governing Law: Specification that Malaysian law governs the promissory note

9. Execution: Signature blocks for maker and witness, with date of execution

What sections are optional to include in a Rental Promissory Note?

1. Security: Details of any security or collateral provided to guarantee the promissory note, use when additional security is required

2. Interest Rate: Specification of any applicable interest rate on late payments, include when interest will be charged

3. Prepayment Terms: Terms allowing early payment of the note, include when early payment is permitted

4. Co-Signers: Details of any co-signers or guarantors, include when additional parties are guaranteeing the note

5. Notice Requirements: Specific requirements for serving notices, include when formal notice procedures are needed

What schedules should be included in a Rental Promissory Note?

1. Schedule A - Payment Schedule: Detailed breakdown of payment amounts and due dates

2. Schedule B - Property Description: Detailed description of the rental property including any relevant registration numbers

3. Schedule C - Referenced Rental Agreement: Copy or key terms of the underlying rental agreement

4. Appendix 1 - Calculation of Total Amount: Breakdown of how the total amount in the promissory note was calculated

5. Appendix 2 - Notice Forms: Standard forms for providing notice of payment or default

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

Promissory Note

Sector

Banking

Cost

Free to use
Relevant legal definitions

























Clauses




















Relevant Industries

Real Estate

Property Management

Residential Housing

Commercial Property

Retail

Hospitality

Office Space

Industrial Property

Self-Storage

Shopping Centers

Relevant Teams

Legal

Real Estate

Property Management

Finance

Compliance

Risk Management

Operations

Asset Management

Leasing

Collections

Contract Administration

Relevant Roles

Property Manager

Real Estate Manager

Legal Counsel

Leasing Manager

Finance Manager

Property Administrator

Compliance Officer

Risk Manager

Contract Administrator

Asset Manager

Facilities Manager

Real Estate Agent

Tenant Relations Manager

Collections 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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