Letter of Intent to Purchase Property Template
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Letter of Intent to Purchase Property
Your City, State, Zip Code
Your Phone Number
City, State, Zip Code
Re: Letter of Intent to Purchase Land Property
File Number/ Property Registration Number:
Dear [Name of Addressee]:
Upon the effectivity of the execution of a definitive and mutually acceptable Agreement of Purchase of Property (“Purchase Agreement”) within [number of days in words] ([number of days in digits]), and after the execution of this Letter of Intent (“Contract Negotiation Period”), the undersigned offers to purchase the property subjected in this document, in accordance of the following terms and conditions:
Seller(s): [Complete Full and Legal Name of Seller/s], with contact information as follows: [Contact details such as phone number and/or email address].
Buyer: [Complete Full and Legal Name of Buyer], with contact information as follows: [Contact details such as phone number and/or email address].
The Buyer may, upon his discretion, assign his interests to any corporation, partnership, or limited liability company wherein he is the controlling party to any other third party, without the need for Seller approval.
Subject Property: The property subject to this offer (“Subject Property”) is hereby identified as [property registration information including APN Number if applicable].
Together with the subjected Real Property, the Buyer shall purchase also be purchasing all off the Seller’s rights in regards to the property, including, but not limited to the title and interests in all of the fixtures, improvements, leases, maps, reports, plans, and other such material, as well as all land use entitlements, government permits and allocations, including other such government and agency approvals that may exist concerning the property. In addition, this intent to purchase shall also include the following specific items: [specify additional items].
Purchase Price: [Price in words] ($[price in digits]).
Terms of Purchase: [Insert other terms of purchase of the property in detail. The terms of purchase may include back financing, interest rates, mortgage security, conditions in case of purchaser defaults, stipulations, leasing provisions, and other such special considerations agreed upon by both parties during their initial negotiation period].
Opening of Escrow: Escrow (“Purchase Escrow”) shall be opened on [date], within [number of days in words] ([number of days in digits]) business days from the execution of this Letter of Intent. It shall be noted that both Purchase Agreement and Escrow Instructions shall be mutually prepared and executed by the parties within [number of days in words] ([number of days in digits]) days of execution by both Buyer and Seller, subject to this Letter of Intent to Purchase.
Deposit toward Purchase Price:
Initial Deposit: Simultaneous upon the opening of the Escrow, the Buyer shall deposit therein the agreed sum of [amount in words] ([amount in digits]) as a refundable deposit toward the Property Purchase Price (“Initial Deposit”). Escrow holder shall then deposit the sum in an interest-bearing, federally insured account, wherein the interest accrued shall be added upon the benefit of the Buyer.
Second Deposit: Upon the approval of the Property feasibility study, an additional non-refundable deposit of [amount in words] ([amount in digits]) shall be applicable to the Purchase Price. This tendered amount shall be released to the Seller, including the amount secured in the Initial Deposit.
Feasibility Period: Buyer shall have to perform all feasibility and due diligence required for the Subject property until [date agreed upon by both parties]. The Seller is mandated to fully cooperate with the Buyer in providing any and all information available regarding the development potential of the Subject Property.
At any point prior to the end of the Feasibility Period, for any or no reason at all, the Buyer may terminate this Letter of Intent and/or the Purchase Agreement. However, to effectively cancel the Transaction, Buyer must deliver a written notification to Seller and Escrow Holder in regards to the decision to terminate transaction. Following the notice of termination, the Escrow Holder shall be instructed to release the Initial Deposit made by the Buyer, and return the same amount within five (5) business days upon such termination.
Buyer Conditions Precedent to Closing of Purchase: Upon the expiry of the Property Feasibility Period, the Obligations of the Buyer to close escrow shall then be subjected to the following conditions:
Title Company shall be allowed to issue a policy of title insurance to the Buyer in the full amount of the Purchase Price. The document shall state the marketable title vested in the Buyer, subject to exceptions as approved by the Buyer during the Feasibility Period.
The existence or nonexistence of any development, building, construction, flooding, or other moratoria that affects the Subject Property.
The Seller shall be required to provide title to the property, free and clear of liens, except for non-delinquent bonds and taxes, to the Buyer.
Closing of Escrow: The Escrow shall close on [date of agreed Escrow closing].
Other Provisions: The Purchase Agreement, which shall follow and supersede this document, may contain provisions regarding the sale of the property, including but not limited to a liquidated damages clause, attorney’s fees, notices, mutual indemnifications, and broker’s commission, among other documents.
Any and all documentation provided to the Buyer by the Seller shall then be returned to the Seller, should any of the parties decide to cancel the Sale of the Property.
Expiration of Offer: This Letter of Intent shall serve an open offer for the Parties until [date of expiration as agreed by both parties]. Upon such time, the offer shall then be terminated automatically, if the Seller fails to execute the transaction.
All parties subject to these transactions shall intend that this Letter be superseded by the Purchase Agreement. All parties agree to proceed with the transaction in accordance to the terms and conditions outlined in the Letter of Intent. Seller understands that the purpose of this Letter is to allow investigations from both parties during the Contract Negotiation Period.
Should both parties fail to mutually execute the Purchase Agreement within the stated Contract Negotiation Period for any reason, or for no reason whatsoever, this Letter of Intent shall then be deemed expired. Following such, no party shall have any further rights or duties hereunder. During the Negotiation Period, the Seller shall not be allowed to solicit other offers for the Property.
If both parties agree to the above terms and conditions, please indicate so by signing on the space provided below.
[Full legal Name and Signature of Buyer] Dated: _________________
[Full legal Name and Signature of Seller] Dated: _________________
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