FREE INTENT LETTER SAMPLE
Buy or Lease Real Estate Property
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The Intent Letter creates no contractual obligation on the part of both buyer and seller and it will be superseded by any written Purchase Agreement signed by the parties.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:
- List all parties related to the transaction, addresses, and telephone numbers.
- List the purchase price of the property
- The Closing/occupancy date
- List the commissions of the real estate brokers involved in the negotiation
- Any security deposits will be transferred to the new owner
- Any tenant improvement allowances or free months of rent (if applicable)
- It should contain an expiration date to encourage a quick response and release both parties from the terms of the letter after a certain amount of time has passed.
Basic uses for a letter of intent to buy real estate:
- To document the progress of the transaction
- Help buyer to secure financing.
- To minimize any misunderstanding
- Disclose and document the terms to the sale
- Document the terms of the deal before committing to the purchase.
- Provide evidence on how the purchase will be structured.
- Identify potential liabilities
- Bind both parties to certain terms only if the purchase is agreed upon or finalized
- To keep a transaction moving forward before the signing a formal contract agreement.
- Can be used in most cases as a written authorization for a buyer to begin the due diligence or investigation of the home/property
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.
INTENT LETTER SAMPLE
Date ___/___/_______
- Seller Name
- Seller Address
- Fax:
- Phone:
- Email:
Letter of Intent to Purchase Real Property
Dear __________________________________:
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)
AND
_______________________________ (Seller’s Printed Name)
_______________________________ (Seller’s Signature)
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