Letter of Intent Real Estate Template – Format, Sample & Examples

One of the first steps towards purchasing or leasing a property involves drafting a letter of intent real estate. A real estate letter of intent serves as a starting point for the parties involved to negotiate and set the terms of the deal before moving forward with the actual purchase. Buying and selling real estate is a very tough process. It is important to document every decision to avoid any confusion. The letter of intent in real estate can help avoid any miscommunication and help the involved parties understand each other’s expectations before moving forward. However, a letter of intent real estate is not a binding agreement, which means that both the buyer and seller are free to walk away if they find a better deal. This is a great way for both the involved parties to negotiate without any added burden.

Considering a letter of intent in real estate plays a key role, it is important for you to understand the different aspects of the letter an how it can be used to express your terms clearly. We will provide you with the format and samples of the letter of intent in order to help to clearly understand the details and to help you customize your letter based on your requirements.

Format Letter of Intent Real Estate

A basic format for the letter of intent real estate can make things considerably simple for you. Here is a simple format to get you started with drafting a real estate letter of intent:

To,
(Buyer/Seller Name)
(Address)

(Date)

Subject:

Content of the proposal

How to Write Letter of Intent Real Estate

While the format for a letter of intent real estate is simple enough, details of the letter play an important role in establishing a clear communication between the involved parties. The first thing to keep in mind is that you adhere to the simple format and clearly specify the name and address of the person for whom the letter is intended. The next step involves stating the subject of the intent (buying or selling) as simply and clearly as possible. The next step involves writing down the details of the deal in regards to property in question like area covered by the property, intended price offered for the property, how the price will be paid, time period of purchase, investigation period for property, expiry of offer and other relevant contract details. A thorough letter discussing every aspect of the intended offer enables both the parties to better understand each other’s aspirations and can result in better deals for both.

Sample Letter of Intent with Examples

Letter of Intent to Purchase Real Estate

Here is a sample letter of intent to purchase real estate:

Letter of Intent to Purchase Real Estate

To,
Mr. Edward Robertson,
#123, 987 Ducking Street
New York,

27th July 2019

Subject: Letter of Intent regarding the purchase of your property in New York

Dear Sir,

I am writing to you with intent of purchasing your property located at #765, Lincoln Street, New York. On careful inspection, I have found that your property perfectly fits into my requirements and I am interested in taking things further through this letter of intent to purchase your property. With a family of four, your property will serve as a great place for me to relocate my family as it is close to my parents and my new office.

I would like to propose a purchase price of $100,000 for your property. The price will be paid in full at the time of purchase and registration of the property in my name. I intend to pay the amount by cheque. I am willing to pay you $20,000 as advance and I am hoping to receive the possession of the property within the next month. However, I’d like a few days to inspect the property before I can move ahead with the purchase.

Kindly let me know what do you think of the offer and we can make a few changes as per your requirements.

Regards,

William Specter

Letter of Intent Commercial Real Estate

Here is a sample letter of intent for commercial real estate:

Letter of Intent Commercial Real Estate

To,
Mr. Robert Singer,
#356, 4th Cross, 71 Street
Washington

30th July 2019

Subject: Letter of Intent in regards to the purchase of your property at Qwerty Street, Washington.

Dear Mr. Robert Singer,

This letter of intent expresses our interest in buying your property situated at Qwerty Street, Washington. Subject to our mutually acceptable conditions, we intend to enter into a Purchase and Sales Agreement for the purchase of the above mentioned property. The details of the terms are mentioned as follows:

Mr. Thomas Langdon of 412 Zanskar Street, Arizona, intends to buy Mr. Robert Singer’s property at Qwerty Street, Washington. The buyer, Mr. Langdon would like to purchase the property along with all the necessary documents, entitlements and government approvals that come with the property. The purchase price offered for the property is $250,000. The buyer is willing to pay 10% of the purchase price which is $25,000 in advance and the rest will be payed through escrow within the next 30 days of the acceptance of the intent by the seller, Mr. Robert Singer.

From the date of acceptance of the intent, the buyer would like to seek 15 days as investigation period in order to perform all the necessary checks and due diligence before moving forward. The final purchase agreement shall be drafted by the buyer, upon the acceptance of the letter of intent by the seller. In case of no response from the seller, the intent of purchase offer is set to expire by 16th August 2019.

We are forward to your acknowledgment, so we can take thing forward and finalize any changes as per your requirements.

Please sign and return the copy of the letter as acceptance of our intent of purchase, so we can begin further negotiations.

Buyer

Mr. Thomas Langdon,
412 Zanskar Street, Arizona

Acknowledged by:

(Signature)

Letter of Intent Real Estate Templates in PDF and Word Format

Letter of Intent to Purchase Real Estate

PDF Word

 

Conclusion

Make sure all the information in the letter of intent real estate is accurate as it will form the basis of the purchase agreement if the letter is accepted. A letter of intent for commercial real estate needs to be more formal and specific. Always be respectful and innovative which can get your letter of intent to get noticed.

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