A letter of intent is an informal agreement that states that two or more people want to enter into a real estate transaction for sale or purchase.
In case of a home sale, a letter of intent is a non-binding agreement that is charted out to show the sellers intention to sell his home. This is usually made right before a formal contract is drawn up, to show that the seller is serious about making the sale.
To create a letter of intent, it is important to include the names and contact information of all parties that are part of the deal.
The time period for a letter of intent is usually limited, and is open to encourage a timely response. The letter of intent should outline the amount of money that the sale will be made for. Once this agreement is drawn, it is alright for buyers to inspect the premises to ensure that all is in order.
Here is a sample of a letter of intent for home sale:
Letter of Intent for Home Sale
December 18, 2017
Re: Letter of Intent for Sale of Home
This letter of intent is being drawn between Mr. Edmond Garcia (seller), and Mr. Gregory Faulkner (prospective buyer) to chart out the details of the following property:
11 Teal Street
New York, NY 19383
It is stated that the seller intends to sell the above-mentioned property to the buyer considering that all aspects of the actual deal have been fulfilled. Moreover, the buyer agrees that after initial inspection, a token amount will be decided and paid to the buyer to lock the property from being placed on the market. The details of the deal are provided below:
Actual price of the house: $600, 000.
Token to be paid by the buyer: $100,000.
Balance payment to be paid by the buyer: $500,000.
The entire transaction must take place within 3 months of the date of token payment, after which the deal will be null and void, and the seller has the right not to return the token. Once this letter of intent has been signed, an agreement with further details will be drawn to complete the transaction this agreement will be admissible in the court of law and is completely binding.
Both the seller and buyer agree to the terms charted out in this letter of intent.
Mr. Edmond Garcia (Seller)
Mr. Gregory Faulkner(Buyer)
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