The Sale and Purchase Agreement (SPA) is the formal contract between buyer and developer, signed after the initial reservation fee. It specifies the unit, price, payment schedule, handover date, specifications, and the rights and penalties for both parties — including the developer's obligations on delay and the buyer's right of first refusal in some structures.
Why It Matters
- —The reservation form is not binding — the SPA is the document that actually commits both sides.
- —Always review the delay-penalty clause, the defined handover date, and what happens if the project is delayed beyond a grace period.
- —In Dubai, RERA-approved SPAs are filed with the Dubai Land Department; in Malaysia, the standard form is set by the Housing Development Act.