How Do You Write A Letter Of Intent For Real Estate?
A letter of intent, or LOI, is a formal yet unofficial document exchanged between two parties outlining a potential business deal or framing future negotiations. In the case of real estate, a potential buyer prepares a letter of intent to express an interest in purchasing property from the seller without entering into a binding legal contract. The buyer should prepare the letter in the early stages of the purchasing process so as to make sure the larger details (i.e. purchase price, closing time) are consistent with the intentions of both parties. Determine the exact details regarding the important information that goes into an LOI. Establish your proposed purchase price, the amount of the down payment, and the desired closing time, applicable terms and conditions, due diligence and any additional provisions. Due diligence refers to the time allowed the potential buyer to review the home and its various features. As the buyer, you must ensure these numbers and dates are exactly what is
