Lease With Option To Buy Contract Template for Malaysia

The Lease With Option To Buy Contract is a specialized legal instrument used in Malaysian property transactions where a property owner wishes to lease their property while simultaneously granting the tenant an exclusive option to purchase it. This document is particularly useful in situations where potential buyers want to occupy and evaluate a property before committing to a purchase, or when they need time to arrange financing. The agreement must comply with Malaysian property law, including the National Land Code 1965, Contracts Act 1950, and Stamp Act 1949. It typically includes detailed provisions about rental terms, property maintenance, option exercise periods, purchase price determination, and the conditions under which rental payments may be credited toward the purchase price. This type of contract provides flexibility for both parties while ensuring legal protection under Malaysian jurisdiction.

1. Parties: Identification of lessor/owner and lessee/potential buyer, including full legal names, identification numbers, and addresses

2. Background: Context of the agreement, including brief property description and parties' intention for lease with purchase option

3. Definitions: Key terms used throughout the agreement including Property, Lease Period, Option Period, Purchase Price, etc.

4. Lease Terms: Details of the lease including duration, rental amount, payment terms, and maintenance responsibilities

5. Security Deposit: Amount, payment terms, and conditions for return of the security deposit

6. Option to Purchase: Terms of the purchase option, including option fee, exercise period, and purchase price

7. Property Usage: Permitted use of property, restrictions, and maintenance obligations

8. Insurance and Utilities: Requirements for insurance coverage and responsibility for utility payments

9. Default and Remedies: Events of default and available remedies for both parties

10. Termination: Conditions and process for termination of the agreement

11. Governing Law: Specification of Malaysian law as governing law and jurisdiction

12. Execution: Signature blocks and attestation requirements