Real Estate Letter of Intent to Purchase

Things are about to get heated when you use the Free Real Estate Letter of Intent to Purchase template to let your agent know that you’ve made up your mind to buy. Download this for free and get it in whatever file format suits you.

LETTER OF INTENT TO PURCHASE REAL ESTATE

[DATE]

Dear [RECIPIENT NAME],

Subject to the conditions set forth in a purchase agreement to be executed within [NUMBER] days from the date of this Letter of Intent , the undersigned  offers to purchase the real estate property in accordance with the following terms and conditions:

Real Estate Property: The real estate property (Real Estate), to which this offer is made, is identified as [DETAIL] located at [AREA/PLACE]. Together with the Real Estate, the buyer also offers to purchase all improvements, furniture and fixtures, and all of the Seller’s rights, title, and interest with respect to any property, real or personal, within the premises of the Real Estate. 

Purchase Price: $ [NUMBER 1]

Escrow: The Buyer and the Seller shall execute an escrow agreement within [NUMBER 2] days from the date of the LOI which terms and conditions shall be mutually agreed upon by them. 

Deposit: Upon the execution of the escrow agreement, the Buyer shall deposit therein a refundable amount equivalent to 20% of the Purchase Price.

Within [NUMBER 3] days from the termination of the Feasibility period, the buyer shall place an additional non-refundable deposit of [NUMBER 4] which will be released to the Seller together with the initial deposit upon the execution of the purchase agreement.

Feasibility Period: The Buyer shall have [NUMBER 5] days from the date of acceptance of the LOI to conduct its feasibility and due diligence over the Real Estate. The Buyer may terminate the LOI at its sole discretion upon written notice to the Seller subject to the forfeiture of any non-refundable deposits made under the escrow agreement. The termination of the LOI without just cause is without prejudice to any damages that the Seller may be entitled on account of such termination. 

Close of Escrow: The escrow account shall be closed on [DATE 1]. Any refundable amounts shall be made within [NUMBER 6] days from the date of closure.

Provisions in the Purchase Agreement: The purchase agreement shall include provisions for liquidated damages, mutual indemnifications, attorney’s fees, duties and responsibilities, and broker’s commission. 

Documents: Any documents provided by the Buyer and Seller to each other shall be returned by them within reasonable time. 

Expiration of the Offer: This LOI shall constitute a valid and standing offer to the Seller until [DATE 2], at which time the LOI be automatically terminated if the same has not been fully executed by the Seller. 

Kindly indicate your approval to the above terms and conditions by affixing your signature below. The Buyer and the Seller agrees that this LOI serves only to facilitate the feasibility of entering into a purchase agreement regarding the Real Estate, hence, it does not confer any rights or obligations to the parties except those expressly provided in the LOI. 

Please send the signed copy of this LOI to:

[DETAIL]

Acknowledged and agreed

Buyer:

NAME AND SIGNATURE 
DATE

Seller:

NAME AND SIGNATURE
DATE