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Moratorium Agreement

This document is a moratorium agreement between a housing developer and purchaser regarding an affordable housing development. The key points are: 1. The purchaser agrees to a 5-year moratorium on selling, transferring, or renting out the purchased property to ensure it is owned by the targeted individuals. 2. The moratorium period continues if the property is transferred to heirs upon the purchaser's death. 3. The purchaser indemnifies the developer against any penalties from breaching the moratorium agreement.

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MANU OKAY
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248 views

Moratorium Agreement

This document is a moratorium agreement between a housing developer and purchaser regarding an affordable housing development. The key points are: 1. The purchaser agrees to a 5-year moratorium on selling, transferring, or renting out the purchased property to ensure it is owned by the targeted individuals. 2. The moratorium period continues if the property is transferred to heirs upon the purchaser's death. 3. The purchaser indemnifies the developer against any penalties from breaching the moratorium agreement.

Uploaded by

MANU OKAY
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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MORATORIUM AGREEMENT

This AGREEMENT is dated this day of , 20

BETWEEN

, a company incorporated in Malaysia and a housing developer duly licensed under the
Housing Development (Control and Licensing) Act 1966 with its registered office at and its
business address at (hereinafter called “the Developer”) of the one part;

AND

(hereinafter called “the Purchaser”) of the other part;

WHEREAS :-

A. By a Sale and Purchase Agreement dated the day of made


between the above Developer and the Purchaser (hereinafter referred to as “the
Principal Agreement”), the Developer has sold and the Purchaser has purchased a
property known and identified as a Single Storey Terrace/Semi Detached/Bungalow
House having the Developer’s provisional Lot No. [ ] and bearing address no.
[ ] held under individual
title [ ] (hereinafter referred to as
“the said Property”) within the development known as under the affordable
housing ownership scheme known as (hereinafter referred to as the
“Development”) and subject to the terms and conditions appearing within the
Principal Agreement.

B. The Development consists of a scheme to support the Government of Malaysia’s


policy to provide affordable dwelling for the nation by developing reasonable priced
houses for targeted individuals.

C. The Purchaser acknowledges the purpose of the Development (as defined herein)
and agreed to subject to the terms and conditions hereinafter appearing.

NOW THIS AGREEMENT is witnesseth as follows :-

1. SALE MORATORIUM

1
1.1 With full knowledge of the purpose of the Scheme, the Purchaser acknowledges that
the purchase of the said Property is subjected to a five (5) year moratorium whereby
the Purchaser hereby warrants and undertakes that the said Property, when
purchased, shall not to be sold and/or transferred and/or rent/lease to any third
party(ies) for any reason whatsoever, within a period of five (5) years commencing
from the date of the Principal Agreement (hereinafter referred to as the “Moratorium
Period”), save and subject only to a transfer to the next of kin in the event of death
of the Purchaser.

1.2 Notwithstanding the ownership of the said Property, the Purchaser further
acknowledges that the moratorium period is provided to ensure eligibility of targeted
segment of the purchasers in support of the Government’s aspiration and to ensure
that the Government’s objective of assuring a roof under each family is achieved.

1.3 In the event of death, where the said Property is transferred pursuant to the letter of
administration and/or distribution of assets according to the Shari’ah principles of
faraid or where the Purchaser is/are non-muslim, letter of administration or grant of
probate or a will, the next of kin or the transferee of the said Property shall observe
the Moratorium Period, which shall, continue and subsisting until the expiry of the
Moratorium Period.

2. NON-VARIATION OF PRINCIPAL AGREEMENT

2.1 This Agreement shall not in any way alter, modify, amend, vary nor shall any of its
terms depart from its original purpose and from any of the terms, conditions,
stipulation, covenants, warranties, obligations and undertakings within the Principal
Agreement and the parties hereto acknowledge that the terms and conditions herein
shall act independently from the Principal Agreement.

2.2 Nothing herein shall invalidate the provisions of the Principal Agreement and all the
terms and conditions contained in the Principal Agreement shall remain in full force
and effect notwithstanding the execution of this Agreement.

3. INDEMNITY BY PURCHASER

The Purchaser acknowledges that any breach of the provisions of this Agreement may
subject the Purchaser and/or the Developer to any penalty(ies), fine(s) or claim(s) by any
authorizing party and/or appropriate authority(ies) and in occurrence of such event, the
Purchaser hereby indemnify the Developer and undertake to keep the Developer indemnified
against any penalty(ies), fine(s) or claim(s) resulting from the breach by the Purchaser of
the provision, undertaking and guarantee by the Purchaser in this Agreement.

4. BINDING AGREEMENT

This Agreement shall be binding upon the successors in title and assigns of the Developer
and the heirs, personal representatives, assigns and successors-in-title of the Purchaser.

5. COSTS AND DISBURSEMENT

The Purchaser shall be responsible for the costs in respect of this Agreement. The stamp
duty payable on this Agreement shall be borne and paid by the Purchaser.

2
***********************************

3
IN WITNESS WHEREOF the parties in this Agreement have set their hands the day and
the year first above written.

Signed by )
for and on behalf of the Developer )
)
in the presence of:- )

-------------------------------------- --------------------------------------

--------------------------------------

Signed by the Purchaser )


)
in the presence of:- )

--------------------------------------

(NRIC NO. )

--------------------------------------

(NRIC NO. )

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