Real Estate Development Joint Venture Term Sheet Template for Malaysia

The Real Estate Development Joint Venture Term Sheet is a crucial preliminary document used in Malaysian real estate development projects when two or more parties intend to collaborate on a property development venture. It is typically prepared after initial discussions but before detailed due diligence and final agreements, setting out the principal commercial terms and structure of the proposed collaboration. This document must comply with Malaysian legal requirements, including considerations under the National Land Code 1965, state-level property regulations, and foreign investment restrictions where applicable. It serves as a roadmap for the parties' lawyers to draft the detailed joint venture agreement and related documentation, while also helping secure preliminary management approval and facilitate initial project planning.

1. Parties: Identification of the JV partners, including full legal names and registration details

2. Background: Context of the proposed development and brief description of each party's business

3. Definitions: Key terms used throughout the term sheet

4. Project Description: Details of the proposed development project, including location and nature of development

5. JV Structure: Proposed legal structure of the joint venture and shareholding ratios

6. Land Details: Description of the development land, including title details and encumbrances

7. Capital Structure: Initial capital contributions and funding commitments from each party

8. Development Components: Breakdown of the development components and preliminary specifications

9. Roles and Responsibilities: Key responsibilities of each party in the joint venture

10. Management Structure: Proposed management and decision-making framework

11. Development Timeline: Key milestones and projected timeline for the development

12. Profit Sharing: Mechanism for sharing profits and losses

13. Conditions Precedent: Key conditions that must be satisfied before proceeding

14. Regulatory Compliance: Key regulatory approvals required and responsibility for obtaining them

15. Exclusivity: Terms of exclusivity during negotiation period

16. Confidentiality: Confidentiality obligations of the parties

17. Binding Effect: Clarification of which terms are binding and non-binding