Letter of Intent Sample for Real Estate

LETTER OF INTENT FOR THE PURCHASE OF REAL PROPERTY

DOCUMENT CONTROL

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

1. OFFICIAL NOTICE AND DISCLAIMER

LEGAL NOTICE: This Letter of Intent ("LOI") outlines the preliminary terms and conditions under which the Buyer intends to purchase the Property from the Seller. This document is intended solely as an expression of interest and, except for the provisions titled "Confidentiality," "Exclusivity," and "Governing Law," does not constitute a legally binding agreement. A binding commitment shall only exist upon the execution of a definitive Purchase and Sale Agreement (the "PSA").

2. PARTIES

• Buyer: [Full Legal Name of Buyer Entity], a [State] [Entity Type], with an address of [Street Address, City, State, Zip].
• Seller: [Full Legal Name of Seller Entity], a [State] [Entity Type], with an address of [Street Address, City, State, Zip].

3. PROPERTY DESCRIPTION

The Property is located at [Full Street Address, City, State, Zip] and is legally described as [Insert APN or Legal Description], including all improvements, fixtures, and appurtenant rights (the "Property").

4. OPERATIVE TERMS

1. Purchase Price: The total purchase price shall be $[Amount] USD, payable via wire transfer at closing.
2. Earnest Money Deposit: Buyer shall deposit $[Amount] into escrow within [Number] business days of execution of the PSA.
3. Due Diligence Period: Buyer shall have [Number] days from the effective date of the PSA to inspect the Property, review title, survey, environmental reports, and financial records.
4. Closing Date: Closing shall occur on or before [Date], subject to the satisfaction or waiver of all contingencies.
5. Exclusivity: Upon execution of this LOI, Seller agrees to cease all negotiations with third parties and grants Buyer an exclusive period of [Number] days to negotiate the PSA in good faith.
6. Confidentiality: Neither party shall disclose the existence or terms of this LOI to any third party (except professional advisors) without prior written consent.

5. SIGNATURES AND ACKNOWLEDGMENT

By signing below, the parties confirm their intent to negotiate the terms of a definitive PSA in accordance with the conditions outlined above.

BUYER: Signature: __________________________ Date: [Date] Printed Name: [Name] Title: [Title]

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

6. EXECUTION AND ENFORCEMENT GUIDE

1. Authorization Verification: Ensure the signatory for each entity holds valid signing authority under their respective Articles of Incorporation or Operating Agreement before execution.
2. Counsel Review: Before delivering this LOI, have the document reviewed by local counsel to ensure compliance with specific state disclosure laws (e.g., Agency Disclosure, Environmental Disclosure requirements).
3. Escrow Coordination: Do not transmit funds to the Seller directly. All Earnest Money must be held by a neutral, bonded title company or escrow agent under specific written instructions.
4. Transition to PSA: Use the specific terms captured in this LOI as the foundational "Terms Sheet" for your legal counsel to draft the formal Purchase and Sale Agreement. Ensure the PSA explicitly supersedes this LOI upon execution.

Disclaimer: This document is a template provided for informational purposes only and does not constitute formal legal advice. Real estate laws vary significantly by jurisdiction; consult with a licensed attorney in the applicable state prior to execution.