Letter of Intent for Real Estate

Here’s a letter to convey your interest in purchasing a real estate. This template is free to download and can be used to create a letter that minimizes misunderstanding and document progress towards a sale.

Letter of Intent for Real Estate

Dear Mr. Johnson,

Subject to the execution of this definitive and mutually acceptable agreement regarding purchase and sale of Property within 30 days, after the execution of this Letter of Intent, the undersigned offers to purchase the subject property in accordance with the following terms and conditions:

Seller(s): William Smith

with contact information as follows: 222 555 7777
Buyer:  Dwayne Johnson
with contact information as follows: 222 555 7777
 
The buyer of said real estate property shall no longer be of interest to any corporation, partnership, or limited liability company in which he is the controlling party or to any other third party without Seller’s approval.
 
Subject Property: The property, which is the subject of this offer, is identified as the property with; 1243567856
 
Included with the real property, the Buyer is aware that he/she is also purchasing all of Seller's rights, title, and interest in all of the fixtures, improvements, leases, maps, reports, plans, and other such material comprised in the Subject Property. The purchase of the real property includes the use of land entitlements, governmental permits and allocations, and other existing governmental and agency approval that are of concern regarding the property. In addition, this intent to purchase said real estate includes the following specific items:
 
Purchase Price: $20000 USD
 
Terms of Purchase: Following are the details
Opening of Escrow: Escrow shall be opened at 24th Main Street Company within 30 business days from the execution of this Letter of Intent. This written Purchase Agreement and Mutual Escrow Instructions shall be prepared and executed mutually by Buyer and Seller within  20 days of execution by both parties, as outlined on this Letter of Intent to Purchase Contract Negotiation Period.

A deposit toward Purchase Price: 
 
Initial Deposit: Simultaneous with the opening of escrow, the Buyer shall pay therein the sum of $2000 as a refundable deposit toward and applicable to the Purchase Price. The listed Escrow Holder is expected to then deposit the sum agreed upon in an interest-bearing, federally insured account with accruing interest for the benefit of Buyer.
 
Second Deposit: An additional, non-refundable deposit of $100 shall be applicable to the Purchase Price and upon approval of the feasibility shall be released to Seller, inclusive of the Initial Deposit.
 
Feasibility Period: Buyer shall be given enough time to perform all feasibility and due diligence for the subjected property. Seller shall fully cooperate with Buyer in providing any and all information available regarding the development potential of the property by 22/03/2020. When found not to be in line with the agreement, the Buyer may opt to terminate the sale at any time prior to the end of the Feasibility Period for any reason, or no reason at all upon written notification to Seller and Escrow Holder of the termination. Upon notice of termination, Escrow Holder shall be instructed to immediately release the Initial Deposit made by Buyer and return the sum to Buyer within 30 business days of termination.

Conditions Prior to Closing Sale: Upon the expiration of the Feasibility Period, the Buyer's obligation to close escrow shall be subject to the following conditions:

Mark Insurance Co shall be in a position to issue a policy of title insurance to Buyer in the full amount of the Purchase Price, showing good and marketable title vested in Buyer. This is subject only to such exceptions to the title as already reviewed and approved by Buyer during the Feasibility Period.

The non-existence of any development, building, construction, flood, or moratoria affecting the Subject Property.

Seller to provide Buyer title to property free and clear of liens except for non-delinquent bonds and taxes.

Close of Escrow: Close of escrow to be on basis of the following details

Other Provisions: 

The Purchase Agreement may contain other provisions such as, but not limited to, a liquidated damages clause, attorney's fees, notices, mutual indemnifications, broker's commission, and the like. 

Any and all documentation provided in this letter of intent to buy, by Seller to Buyer shall be returned to Seller upon the cancellation of this transaction.

Expiration of Offer: This Letter of Intent shall constitute an open offer until 22/03/2020, at which time it shall be automatically terminated if not executed by Seller.

If the buyer perceives the above outline of terms and conditions acceptable, please indicate by signing the document below. All intended parties to these transactions, therefore, agree herein that this proposal shall be superseded by a Purchase Agreement. In the meantime, all parties agree to proceed in accordance with the terms and conditions outlined in this Letter of Intent. Seller shall no longer be able to solicit other offers during the Contract Negotiation Period.

Seller agrees and understands that the purpose of this Letter of Intent is to allow a further investigation by both parties into the feasibility of entering into a formal agreement. This Letter of Intent is only binding between the parties during the Contract Negotiation period. If for the purpose of this transaction, it is found that the Purchase Agreement is not mutually executed by the parties within the Contract Negotiation Period, for any reason whatsoever or no reason at all, this Letter shall expire and neither party shall have any further rights or duties hereunder. 
 
BUYER:                                                                                                                DATE: 20/03/2019
Dwayne Johnson
 

SELLER:                                                                                                               DATE: 20/03/2019
William Smith
Mark Anthony