Document background
The Preliminary Sale and Purchase Agreement is a crucial document in Malaysian property transactions, typically used when parties have reached initial agreement on key terms but require time for due diligence and formal documentation. This document, while preliminary in nature, creates legally binding obligations under Malaysian law and serves as a foundation for the subsequent formal Sale and Purchase Agreement. It typically includes essential details such as property description, purchase price, payment terms, conditions precedent, and timeframes for completion. The agreement is particularly important in complex property transactions where detailed due diligence is required, or where parties need to secure financing or obtain regulatory approvals before proceeding to final documentation. It provides protection to both parties during the preliminary phase while maintaining flexibility for addressing issues discovered during due diligence.
