A real estate letter of intent implies to a real estate transaction between two parties. It could be for a rent deal between homeowner and prospective tenant as well as a purchase letter of intent between buyer and seller of a house or plot. However, this is not the final agreement but then contains all vital information regarding the final contract. A real estate letter of intent format template will have pre-designed space for basic information on both the parties, property specifications, the price of purchase or rent amount and the commission of the broker involved. It would also include time frame of the LOI.
Purchasing a real estate property is a big decision. You need to document everything in writing. That’s where a letter of intent comes into use in your purchase. Real Estate Letter Of Intent is a legally binding document made between the parties involved in the purchase. It gives an outline of the prospective sale. The purpose of having a letter of intent is to avoid misunderstandings while making your purchase. It functions as an agreement contract between the two parties. And, it has the terms and conditions of purchasing the property.