A Letter of Intent is a written document that is also known as the “LOI” or the Real Estate Letter of Intent. The buyer writes this letter to the owner of the land, expressing the interest to buy a certain property. The LOI is a pre-purchase agreement paper that includes two parties in it who are getting into a legal transaction of buying or selling property.
In most cases, when you buy Real Estate, the seller courts the buyer but the Letter of Intent works as a reverse proposal. These letters need to be written in a formal letter format as they are used for business transactions.
9+ Letter of Intent to Purchase Real Estate
1. Non-Binding Letter of Intent – PDF
First up is this LOI format that acts as a guiding principle during the process of drafting the agreements. A non-binding letter of intent enables both parties to back out of the transaction at any given point in time. This is a very flexible arrangement and most business organizations prefer a non-binding letter of intent.
As you can see from the image above, this letter of intent format contains descriptions of the buyer, seller, and the property. Along with this, you need to enter the financial details and the terms and conditions of the sale just like you would in these sample general release of liability form.
2. Letter of Intent for Land Acquisition – Microsoft Word
Even when you look at buying land, you will usually not directly make the transaction and buy the property. During such transactions, a letter of intent is first signed before completing the formalities. Buyers usually sign a letter of intent to block the property and remove it from the open market till they purchase it.
In this case, too, you need to enter all relevant details of the land that is being purchased along with information about the buyer and seller. This 8-page document is pretty comprehensive and is open for editing as well just like a free bank statement template.
3. Commercial Letter of Intent – PDF
Commercial properties come with their own document formats and a business or commercial letter of intent is suitable for such transactions. In this 4-page format, you will find various sections that include purchase price, sale conditions, commissions, warranties, and prorations.
All these refer to the description of the commercial property on sale, its details, financial terms, etc. Below all these terms and conditions is a signature section that needs to be signed by both the buyer and the seller.
4. Electronic Letter of Intent – Microsoft Word
In this digital world, sending out hard copies of documents that be a slow and expensive affair. And this is why it is always better to have digital formats ready. If you are looking for such an online letter of intent format, then this one would be suitable for your organization.
The 6-page format is highly detailed with sections on the property details, purchase price, inspection details, real estate commissions, leasing, and negotiation scopes. The document is editable so you can insert your own content in it.
5. Letter of Intent for Residential Purchase – PDF
Even though the format might look similar to the ones above, it is always recommended to use a suitable letter of intent format for your transactions.
6. Purchase of Entire Business Letter of Intent – Microsoft Word
Auctions houses often sell items, properties, equipment, and even businesses. So, it is natural for them to have their own letter of intent format. In this particular template, you will see that there is information about buying an entire business including their real estate. If you execute such transactions, then you could use this template.
7. Letter of Intent to buy Vacant Lot – PDF
A vacant lot is basically an undeveloped piece of land. While you are buying or selling such properties, it is always better to use a letter of intent suitable to such transactions. Usually, properties that are developed will contain information about the development like permanent structures, components, etc. But a vacant lot format doesn’t need to have such details.
8. Letter of Intent for Asset Purchase – PDF
When corporate mergers or acquisitions take place, then one organization becomes the owner of another organization’s assets. This also happens when a company files for bankruptcy and a bank takes over the assets. In such cases, you need to use a letter of intent for the takeover of the company assets.
9. Letter of Intent for Corporate Purchase Order – PDF
This letter of intent template is designed to be used by corporates. There isn’t a vast difference between this template and the others mentioned in the article, but certain pieces of information, legal terms often differ in these templates.
This 3-page template is an excellent guiding document while making your own formats.
Frequently Asked Questions
Have some questions about Letter of Intent templates? Check out these commonly asked questions that we have answered for you.
1. How binding is the Letter of Intent in Real Estate?
The Letter of Intent is a formal document that documenting the transaction between the buyer and the seller. In some countries, signing the Letter of Intent is considered to be the finalization of the transaction and none of the parties would usually back out from it. However, in other countries, the LOI is just an intention of purchase and is not legally binding.
2. What is a Letter of Intent to purchase?
A Purchase Letter of Intent is a written agreement with the intention to purchase services or products from a seller/vendor. The customer can use this letter to show and demonstrate their seriousness. They can use this letter as their motivation to transact business in the future. In some cases, this is the same as a Purchase Order.
3. What are the most important components of an LOI?
No matter what type of real estate you want to buy or sell, always include these details in your LOI
- Buyer and seller details
- Details about the property/land for sale
- All financial terms and conditions
- Inclusions and exclusions of the sale
- Non-binding clauses, if required
The Letter of Intent is usually a binding document as it is combined with a contract. However, if you do not want it to be binding, you can always use a non-binding letter of intent to purchase land. With our free, editable LOI templates you don’t have to invest your time in writing your own letter.
These different types of Letter of Intent templates are designed as per the industry standards. You can use them for different purposes and in case you wish to make any changes to them you can always edit them yourself. But do remember that these documents are legal in nature and once you draft your template, it is advisable to get them checked by a legal expert.