Deed of Revocation of Sale and Purchase Agreement Malaysia: What You Need to Know

A Sale and Purchase Agreement (SPA) is a legally binding document that outlines the terms and conditions of a property sale between a buyer and a seller. However, there may be instances where one party wishes to cancel the agreement, which is where the Deed of Revocation comes in.

In Malaysia, a Deed of Revocation of the Sale and Purchase Agreement is a legal document that terminates a SPA. It is important to note that this deed can only be executed if both parties agree to it. If one party does not consent, the deed cannot be executed.

Why Would You Need a Deed of Revocation?

There are several reasons why a Deed of Revocation might be required:

1. Breach of Contract – If one party violates the terms and conditions of the SPA, the other party may wish to terminate the agreement.

2. Unforeseen Circumstances – In certain situations, such as a change in the buyer`s financial situation or a natural disaster, either party may wish to cancel the SPA.

3. Mutual Agreement – If both parties agree that the SPA is no longer viable, they may opt to cancel the agreement through a Deed of Revocation.

How to Execute a Deed of Revocation

Executing a Deed of Revocation requires both parties to sign the document. It is recommended that legal advice is sought before executing the deed to ensure that all legal requirements have been met.

The Deed of Revocation should contain the following information:

1. The name and addresses of the parties involved.

2. Details of the SPA, including the date of execution.

3. The reason for revocation.

4. The effective date of the revocation.

5. Any terms and conditions regarding the return of the deposit.

6. An indemnity clause, which protects both parties from any claims arising from the cancellation of the SPA.

It is recommended that a new SPA is executed if the parties wish to continue with the sale and purchase of the property.

Conclusion

A Deed of Revocation of Sale and Purchase Agreement is a legal document that can terminate an SPA in Malaysia. It is important to seek legal advice and ensure that both parties agree before executing the deed. By following the necessary legal procedures, parties can cancel an SPA in a legally binding way and avoid any potential disputes.