Signing a Sales and Purchase Agreement in Malaysia: Everything You Need to Know
Congratulations! You`ve found the perfect property in Malaysia and you`re ready to seal the deal. Before you do, it`s important to understand the legal process of signing a sales and purchase agreement in Malaysia. In this article, we`ll take a look at everything you need to know to ensure a smooth transaction.
What is a Sales and Purchase Agreement?
A sales and purchase agreement (SPA) is a legally binding contract between a buyer and seller outlining the terms and conditions of a property transaction. It is a crucial document that sets out the terms of the sale and protects both parties` interests. It is generally prepared by the seller`s lawyer and must be signed by both parties when the agreed price and terms have been finalized.
The SPA includes details such as the purchase price, payment terms, property description, expected completion date, and other essential provisions such as warranties and indemnities, which provide a layer of protection for both parties in case of any breaches of contract.
What are the Steps Involved in Signing an SPA?
Step 1: Engage a Lawyer
In Malaysia, both parties must engage separate lawyers to represent their interests in the property transaction. Your lawyer will review the SPA and advise you on any amendments that may be needed to ensure that your interests are protected.
Step 2: Review the SPA
Once the SPA is prepared, your lawyer will review it and advise you on the terms and conditions. It`s important to carefully review the SPA, including the clauses and conditions, to ensure that you`re aware of the details of the transaction.
Step 3: Sign the SPA
Once all parties agree on the terms and conditions of the SPA, both parties must sign the document. It`s important to note that the SPA becomes legally binding only after both parties have signed it.
Step 4: Pay the Deposit
The buyer is required to pay a deposit upon signing the SPA. In Malaysia, the standard deposit is 10% of the purchase price. Failure to pay the deposit can result in the seller cancelling the SPA.
Step 5: Complete the Transaction
Once the SPA is signed and the deposit paid, the buyer and seller must work towards completing the transaction within the agreed timeframe. This includes fulfilling all conditions outlined in the SPA, such as obtaining financing, settling any outstanding fees or taxes, and issuing the title deed.
Conclusion
Signing a sales and purchase agreement in Malaysia is a key step in the property buying process. It`s essential to engage a lawyer to represent your interests and review the SPA thoroughly before signing it. By understanding the steps involved in the process, you can ensure a smooth transaction with minimal risk to both parties.