Document background
The Memorandum Of Understanding Between Buyer And Seller Of Land is a crucial preliminary document in Malaysian property transactions that bridges the gap between initial negotiations and the final Sale and Purchase Agreement. It is typically used when parties have reached an in-principle agreement on key terms but require a formal document to proceed with due diligence and further negotiations. The document captures essential elements such as property details, proposed purchase price, payment terms, and conditions precedent, while maintaining flexibility for further negotiations. While primarily non-binding, certain provisions like confidentiality and exclusivity are typically binding. The MOU must comply with Malaysian legal requirements, particularly the National Land Code 1965 and Contracts Act 1950, and serves as a roadmap for the subsequent formal agreement. It's particularly valuable in complex land transactions where detailed due diligence is required or when dealing with foreign investment considerations.
