Document background
The Letter of Intent to Purchase Property is a crucial preliminary document in Malaysian property transactions, used when a prospective buyer wishes to formally express their serious interest in purchasing a property before proceeding with a binding Sale and Purchase Agreement. This document typically outlines key terms such as the proposed purchase price, payment structure, due diligence period, and closing timeline. While primarily non-binding, it serves as a framework for negotiations and demonstrates commitment to the transaction. The document must align with Malaysian property laws and regulations, including the National Land Code 1965, Contracts Act 1950, and specific requirements for foreign ownership if applicable. It's particularly useful in complex property transactions where detailed negotiations and due diligence are necessary before finalizing the purchase.
