Letter of Intent Sample for Property Buying

LETTER OF INTENT FOR THE ACQUISITION OF REAL PROPERTY

DOCUMENT CONTROL

• Effective Date: [Date]
• Version: 1.0
• Jurisdiction: [State/Province/Country]
• Status: Non-Binding (Except where specified)

1. LEGAL DISCLAIMER

NOTICE: This Letter of Intent ("LOI") is intended to serve as a summary of the principal terms for the proposed transaction. Except for the provisions titled "Confidentiality," "Exclusivity," and "Governing Law," this document is non-binding and does not create a legal obligation to complete the transaction. No binding agreement shall exist unless and until a formal Purchase and Sale Agreement ("PSA") is drafted, negotiated, and executed by both parties.

2. PARTIES

• Purchaser: [Full Legal Name of Individual or Entity], located at [Address].
• Seller: [Full Legal Name of Individual or Entity], located at [Address].
• Property: The real property located at [Full Street Address, City, State, Zip Code] including all improvements, fixtures, and appurtenant rights, identified as [Assessor’s Parcel Number / Legal Description].

3. TERMS OF PROPOSED ACQUISITION

3.1. Purchase Price: The total consideration for the Property shall be [Numeric Amount] USD.

3.2. Earnest Money Deposit: Upon execution of the PSA, Purchaser shall deposit [Amount] into an escrow account held by [Name of Title/Escrow Company].

3.3. Due Diligence Period: Purchaser shall have [Number] business days from the Effective Date to inspect the Property, review title commitments, environmental reports, and financial records. Purchaser may terminate this LOI at its sole discretion during this period for any reason.

3.4. Closing Date: The transaction shall close within [Number] business days following the expiration of the Due Diligence Period.

3.5. Financing: [Choose one: This transaction is contingent upon Purchaser obtaining financing / This transaction is an all-cash purchase.]

3.6. Exclusivity: Seller agrees that for a period of [Number] days from the date of this LOI, Seller shall not solicit, negotiate, or enter into any agreement with any other party regarding the sale or lease of the Property.

3.7. Confidentiality: Both parties agree to maintain strict confidentiality regarding the existence of this LOI and the terms contained herein, disclosing information only to legal and financial advisors.

4. GOVERNING LAW

This LOI shall be governed by and construed in accordance with the laws of the jurisdiction of [State/Country].

5. SIGNATURES AND ACKNOWLEDGMENT

PURCHASER: Signature: __________________________ Name: [Print Name] Title: [Print Title] Date: [Date]

SELLER: Signature: __________________________ Name: [Print Name] Title: [Print Title] Date: [Date]

6. EXECUTION GUIDE

1. Drafting: Populate all bracketed fields with precise legal names as recorded on property deeds to ensure enforceability during the transition to the Purchase and Sale Agreement (PSA).
2. Transmission: Deliver the completed LOI via certified mail or encrypted electronic delivery (e-signature platforms like DocuSign or Adobe Sign are recommended for audit trails).
3. Transition: Upon receipt of the signed LOI, immediately trigger the Due Diligence Period. Do not transfer funds until the PSA is fully executed and the Escrow instructions are finalized.
4. Legal Review: Prior to the execution of the final PSA, ensure a licensed real estate attorney reviews the title report and environmental compliance documentation associated with the Property.