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The Option To Purchase Real Estate Agreement is a crucial document in Malaysian property transactions, providing a structured framework for property acquisition negotiations. It is typically used when a potential buyer needs time to arrange financing, conduct due diligence, or secure necessary approvals before committing to the purchase, while ensuring the property owner cannot sell to another party during the option period. The agreement must comply with Malaysian property and contract laws, including the National Land Code 1965 and relevant state enactments. It includes essential details such as property description, purchase price, option period duration, exercise mechanisms, and conditions precedent. This document is particularly valuable in commercial real estate transactions, property development projects, and situations requiring phased property acquisitions.

1. Parties: Identification of the option grantor (property owner) and option grantee (potential purchaser), including full names, identification numbers, and addresses

2. Background: Context of the agreement, including property owner's intention to grant an option and potential purchaser's interest in acquiring the property

3. Definitions: Key terms used throughout the agreement, including Property, Option Period, Option Fee, Purchase Price, and other relevant defined terms

4. Grant of Option: Terms of the option grant, including exclusivity and duration of the option period

5. Option Fee: Amount of option fee, payment terms, and whether it forms part of the purchase price if option is exercised

6. Exercise of Option: Procedure for exercising the option, including notice requirements and timeframes

7. Purchase Price: Agreed purchase price for the property and payment terms if option is exercised

8. Property Details: Brief description of the property, including title details and reference to full description in schedule

9. Conditions Precedent: Any conditions that must be satisfied before the option can be exercised

10. Representations and Warranties: Standard warranties about property ownership, authority to sell, and property condition

11. Termination: Circumstances under which the agreement may be terminated and consequences

12. Governing Law: Specification of Malaysian law as governing law and jurisdiction

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

14. Execution: Formal execution block for signing by parties