Rental Agreement With Option To Purchase Template for Malaysia

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Key Requirements PROMPT example:

Rental Agreement With Option To Purchase

"I need a Rental Agreement with Option to Purchase for a commercial retail space in Kuala Lumpur, with a 24-month rental period starting March 1, 2025, and an option to purchase that can be exercised after 18 months at a fixed price of RM 2.5 million."

Document background
The Rental Agreement With Option To Purchase is a specialized legal instrument used in Malaysian property transactions where parties wish to combine a rental arrangement with a future purchase option. 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 is subject to Malaysian federal laws including the Contracts Act 1950 and the National Land Code 1965, as well as relevant state-level property regulations. It provides comprehensive coverage of both rental and purchase aspects, including detailed terms for rent payments, property maintenance, option exercise period, purchase price, and conditions for exercising the purchase option. This type of agreement offers flexibility to both parties while ensuring legal protection under Malaysian law.
Suggested Sections

1. Parties: Identification of landlord/seller and tenant/purchaser with full details

2. Background: Context of the agreement and brief description of the property and transaction structure

3. Definitions: Key terms used throughout the agreement

4. Property Details: Comprehensive description of the property including address and title details

5. Rental Terms: Rent amount, payment schedule, security deposit, and duration of tenancy

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

7. Tenant Obligations: Responsibilities and obligations during the rental period

8. Landlord Obligations: Responsibilities and obligations during the rental period

9. Maintenance and Repairs: Responsibilities for property maintenance and repairs

10. Insurance: Required insurance coverage for both parties

11. Default and Remedies: Consequences of default by either party

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

13. Notices: Process for giving formal notices under the agreement

14. Governing Law: Specification of Malaysian law as governing law

15. Execution: Signature blocks and execution requirements

Optional Sections

1. Utilities and Services: Details of responsibility for utilities when these are not included in rent

2. Renovation Rights: Include when tenant is permitted to make alterations to the property

3. Assignment and Subletting: Include when these rights are to be granted or specifically prohibited

4. Option Extension: Include when there's a possibility to extend the option period

5. Property Management: Include when there's a property manager or management company involved

6. Mortgage Details: Include when the property is subject to an existing mortgage

7. Special Conditions: Include when there are unique requirements or conditions

8. Force Majeure: Include when parties want specific provisions for unforeseen circumstances

Suggested Schedules

1. Schedule 1 - Property Description: Detailed description of the property including floor plans and boundaries

2. Schedule 2 - Inventory List: List of furniture and fittings included in the rental

3. Schedule 3 - Payment Schedule: Detailed breakdown of rental payments and purchase option payments

4. Schedule 4 - Property Condition Report: Initial condition report of the property

5. Schedule 5 - Option Exercise Form: Template form for exercising the purchase option

6. Appendix A - Property Title Documents: Copies of relevant title documents

7. Appendix B - Property Insurance Certificates: Copies of required insurance certificates

8. Appendix C - Rules and Regulations: If applicable, building or community rules and regulations

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Relevant Industries

Real Estate

Property Development

Property Management

Residential Housing

Commercial Property

Retail

Hospitality

Industrial

Agriculture

Professional Services

Relevant Teams

Legal

Real Estate

Property Management

Facilities Management

Finance

Risk Management

Operations

Asset Management

Contract Administration

Compliance

Corporate Services

Relevant Roles

Property Manager

Real Estate Agent

Legal Counsel

Property Developer

Facilities Manager

Asset Manager

Investment Manager

Corporate Real Estate Manager

Property Acquisitions Manager

Leasing Manager

Contract Administrator

Risk Manager

Financial Controller

Chief Financial Officer

Chief Operating Officer

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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