An Intent Letter is used to state the desire of a prospective buyer or seller to start the negotiation of a real estate property.
This type of letter is not a contract. A letter of intent is usually a non-binding document from buyer to seller. Which means the buyer and the seller are not committed to go through with the sale.
The property owner is not prohibited from negotiating the sale of the property to another prospective buyer.
This letter is intended only as a starting point for the negotiation.
The Intent Letter creates no contractual obligation on the part of both buyer and seller and it will be superseded by any written Purchase Agreement signed by the parties.
A well drafted letter of intent must:
Basic uses for a letter of intent to buy real estate:
Representations, warranties, insurance requirements, closing costs and other details will be disclosed later on the contract or purchase agreement.
Bellow is simple letter of intent designed to contain the basic aspects of a initial offer and purchase or lease negotiation.
Letter of Intent to Purchase Real Property
This letter describes the intent of ______________________ (Name of Buyer or Entity) to purchase real property located at ________________________________________ owned by __________________ (Name of Seller or Entity).
The purchase price proposed is of ________________ Dollars ($________) of which __________________ Dollars ($________) will be deposited with the seller or agent. Buyer will pay the balance to seller at closing, upon acceptance of a bidding and the signing of the final purchase agreement contract.
An additional non-refundable deposit of ______________ Dollars ($________) shall be applicable to the purchase amount. (Optional)
Seller shall provide buyer the title of the property free and clear of liens, except for non-delinquent taxes and bonds.
Both parties should have the opportunity for the next _____ days to perform due diligence including physical inspection of the property and construction and review of pertinent documents such as zoning laws, building permits, property tax records and leases of any existing tenants, before signing a binding contract.
Both the Buyer and the Seller shall use all reasonable efforts to complete and sign the Purchase Agreement on or before the expiration of this Letter of Intent which shall be midnight on _______________ and to close the transaction as promptly as possible thereafter.
Additional Terms of Purchase: (Optional)
The provisions of this Intent Letter shall be construed according to, and otherwise governed by the laws of the State of _____________________, without regard to conflict of law principles.
Accepted and agreed by:
_______________________________ (Buyer’s Printed Name)
_______________________________ (Buyer’s Signature)
_______________________________ (Seller’s Printed Name)
_______________________________ (Seller’s Signature)
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