"Letter of Intent to Purchase Real Estate Template"

ADVERTISEMENT
ADVERTISEMENT

Download "Letter of Intent to Purchase Real Estate Template"

196 times
Rate (4.8 / 5) 11 votes
LETTER OF INTENT
This letter sets forth some of the basic terms under which Seller and Purchaser would be
interested in entering into a Real Estate Purchase Agreement. It serves as a letter of intent
(“Letter”)
from
_________________________
("Purchaser")
​ t hrough
​ a nd
dated
______________, 20__, in which Purchaser has set forth its interest in acquiring the subject
Property.
​ N EVERTHELESS,
PLEASE
BE
ADVISED
THAT
THIS LETTER IS NOT
CONTRACTUALLY BINDING ON THE PARTIES AND IS ONLY AN EXPRESSION OF THE
BASIC TERMS AND CONDITIONS TO BE INCORPORATED IN A FORMAL WRITTEN
AGREEMENT.
PROPERTY:
____________________
____________________
____________________
(hereinafter, the “Property”)
PURCHASER:
____________________
____________________
____________________
____________________
SELLER:
____________________
____________________
____________________
____________________
PURCHASE PRICE:
The Purchase Price shall be ​ $ ___________
LETTER OF INTENT
This letter sets forth some of the basic terms under which Seller and Purchaser would be
interested in entering into a Real Estate Purchase Agreement. It serves as a letter of intent
(“Letter”)
from
_________________________
("Purchaser")
​ t hrough
​ a nd
dated
______________, 20__, in which Purchaser has set forth its interest in acquiring the subject
Property.
​ N EVERTHELESS,
PLEASE
BE
ADVISED
THAT
THIS LETTER IS NOT
CONTRACTUALLY BINDING ON THE PARTIES AND IS ONLY AN EXPRESSION OF THE
BASIC TERMS AND CONDITIONS TO BE INCORPORATED IN A FORMAL WRITTEN
AGREEMENT.
PROPERTY:
____________________
____________________
____________________
(hereinafter, the “Property”)
PURCHASER:
____________________
____________________
____________________
____________________
SELLER:
____________________
____________________
____________________
____________________
PURCHASE PRICE:
The Purchase Price shall be ​ $ ___________
_________________ dollars ($_________)
(“Earnest Money”) shall be placed in escrow
EARNEST MONEY
with the Title Company upon the execution of the
DEPOSIT:
Purchase and Sale Agreement (defined below).
Upon expiration of the Due Diligence Period
(defined below) and provided Purchaser does not
terminate the Purchase and Sale Agreement
before expiration of the Due Diligence Period, the
Earnest Money shall become non-refundable.
DUE DILIGENCE ITEMS:
Within ​ f ive (5) days after the Effective Date.
Seller, at its expense, shall provide Purchaser
with the following items, if any, in Seller's
possession:
1.
A
copy
of
the
most
recent
title
commitment for the Property
2.
Lease
3.
Survey
4.
Environmental Report
Items (a) through (d) above and the updated title
commitment and updated survey, if applicable, are
hereinafter referred to as the “Due Diligence Items”.
DUE DILIGENCE PERIOD:
Purchaser shall have up to ​ _ ___________ (__)
days from the Effective Date (the “Due Diligence
Period”), to review the Due Diligence Items and
to enter upon the Property to inspect the physical
condition of the same, as it shall deem necessary.
On or before expiration of the Due Diligence
Period, Purchaser shall determine whether it is
feasible to purchase the Property based on
Purchaser’s review of the Due Diligence Items and
its physical inspection of the Property. If it is not
feasible for Purchaser to purchase the Property,
Purchaser may terminate the Purchase and Sale
Agreement.
If Purchaser so terminates, the
Earnest Money shall be returned to Purchaser,
and the Due Diligence Items shall be returned to
Seller.
CONTRACT:
Upon the mutual execution of this Letter, Seller
will
promptly prepare a Purchase and Sale
Agreement and Seller shall make a good faith
effort
to
deliver
said
Purchase
and
Sale
Agreement to Purchaser within ​ f ive (5) days
from the effective date of the LOI.
TRANSFER:
Special Warranty Deed or the equivalent thereof
in the State where the Property is located.
CLOSING:
Closing shall occur on a date mutually acceptable
to purchaser and seller, no later than _____​ _ __
(__) days​ after the effective date.
CLOSING COSTS:
Closing Costs shall be paid according to local
custom, further detailed in the Purchase and Sale
Agreement.
SALES COMMISSION:
Purchaser and Seller each represent that no real
estate broker, finder or intermediary has been
consulted or used in connection with the purchase
and sale of the Property except Silo Group, LLC.
Silo Group, LLC shall be compensated upon
Closing
by
Seller
pursuant
to
a
separate
agreement with Seller.
CONFIDENTIALITY:
Seller, Purchaser, and their agents shall maintain
the confidentiality of the parties, terms, and
conditions of this letter and the negotiations that
may follow, if any, from this date forth.
The above items are the general business terms and conditions to be covered in the
Purchase and Sale Agreement, which would be submitted to the Seller. Additional
remaining terms of the Purchase and Sale Agreement will be negotiated and must be
acceptable to both Purchaser and Seller.
This Letter is not intended to be a binding contract.
If this Letter accurately reflects the general business terms and conditions which may
form the basis of a separate written agreement, please confirm in writing no later than
______________, 20___.
Buyer hereby agrees to the terms and conditions of the Letter.
By: ________________________________
____________________
Date
Name: _____________________________
____________________
Title
Seller hereby agrees to the terms and conditions of the Letter.
By: ________________________________
____________________
Date
Name: _____________________________
____________________
Title
Page of 4