Document background
The Option To Purchase Property Agreement is a fundamental document in Malaysian property transactions, used when a potential buyer needs to secure their interest in a property while arranging financing or conducting due diligence. This document is particularly relevant in Malaysia's dynamic real estate market, where property transactions must comply with specific legal requirements under the National Land Code 1965 and state-specific regulations. The agreement typically includes essential details such as the option fee (usually 2-3% of the purchase price), the option period duration, the full purchase price, property details, and the mechanism for exercising the option. It provides protection for both parties by clearly defining their rights and obligations while ensuring the transaction follows Malaysian legal requirements for property transfers.
