Document background
The Earnest Money Form For Sale By Owner is a crucial document in Malaysian private property transactions where owners choose to sell their property directly without real estate agent involvement. This document becomes necessary when a potential buyer wishes to demonstrate serious intent to purchase by providing a good faith deposit. It serves to protect both parties' interests by clearly defining the terms of the earnest money deposit, including amount, payment method, conditions for refund or forfeiture, and application towards the final purchase price. The form must comply with Malaysian property law, including the National Land Code 1965 and Contracts Act 1950, while being structured to accommodate the specific needs of private sellers and buyers operating without professional real estate representation. It's particularly important in Malaysian property transactions as it helps establish a legally binding commitment while the full sale and purchase agreement is being prepared.
