In Malaysia, the sale and purchase agreement (SPA) of a property in the secondary market is not a so called “standard agreement”. Here’s a breakdown of the process:
- One Lawyer Drafts the SPA: Either the seller’s lawyer or the buyer’s lawyer will take the lead in drafting the initial SPA based on the agreed-upon terms and conditions of the sale. This includes details like purchase price, property description, payment schedule, completion date, and other relevant clauses.
- Negotiation and Review: both parties (buyer and seller) will have the opportunity to review the draft SPA with their own lawyer (optional but highly recommended) and propose any necessary revisions or clarifications. Negotiations may occur between both parties to reach a mutually agreeable final draft.
- Signing the SPA: Once both parties are satisfied with the final SPA, it will be formally signed and witnessed. The SPA becomes a legally binding contract upon signing.
Why Do You Need A Lawyer To Prepare SPA
- Legal Expertise: The SPA lawyer will need to ensure the SPA complies with relevant Malaysian property laws and regulations, protecting both parties’ interests.
Benefits of Having Legal Representation:
Having a lawyer represent the buyer during the SPA process offers several advantages:
- Protecting Your Rights: A lawyer can ensure the SPA safeguards the buyer’s interests, such as clear title to the property and fulfillment of seller obligations.
- Negotiation Support: A lawyer can negotiate on your behalf to secure favorable terms within the SPA.
- Reviewing Legal Language: Lawyers can decipher the legal jargon in the SPA and explain its implications to you.
Conclusion:
Both buyer and seller benefit from legal representation throughout the property transaction process. This ensures a smooth and secure experience for all parties involved.