Document background
A Letter Of Intent For Selling Property is commonly used in Malaysian property transactions as a preliminary step before entering into a formal Sale and Purchase Agreement. This document is particularly relevant when dealing with high-value properties or complex commercial transactions where parties need to establish basic terms before committing to detailed legal documentation. It typically precedes the due diligence process and helps secure initial commitment while key terms are being negotiated. Under Malaysian law, while most provisions are non-binding, certain aspects like confidentiality clauses may create legal obligations. The document serves as a framework for further negotiations and demonstrates serious intent to proceed with the transaction, often used to secure preliminary approval from financial institutions or corporate stakeholders.
