Document background
The Deposit Agreement of Purchase and Sale is a crucial preliminary document in Malaysian property transactions, typically used when a purchaser wishes to secure their interest in a property before proceeding with the full sale and purchase agreement. It is particularly relevant in situations where there needs to be a formal arrangement for holding and managing deposit funds while other aspects of the transaction are being finalized. The agreement operates within the framework of Malaysian property and contract law, including the National Land Code 1965 and Contracts Act 1950. It typically includes provisions for deposit payment, holding arrangements, conditions for release, and the parties' obligations regarding the subsequent property transaction. This document helps protect both parties' interests during the period between initial deposit payment and the completion of the final sale agreement.
