Wouldn’t it be wonderful to be able to sell your house to the tenant who has occupied it for some time, and not have to look for a buyer? Perfect situation! If your tenant has shown interest in buying the property, he may ask you to send him a letter of intent to show him that you are serious about the deal. Or if you want to “create” a deal with your tenant, you should write a letter of intent to show him that you are happy to sell the premises to him.
A letter of intent is not a legally binding document but it does set the stage for a purchase or sale order. When a letter of intent to sell is presented to the buyer, it serves as an initial contact with him, detailing a new relationship between the buyer and the seller. Letters of intent are usually quite simply written and do not necessarily need legal counsel. However, if you have not written one before, you may consult your lawyer to find out how to chart one out.
Typically, a letter of intent will highlight terms and conditions of the eventual sale, making the deal somewhat permanent. Refer to the following sample letter of intent to sell property to a tenant:
236 Hike Street
Richmond, GA 10373
Tel: (111) 111-1111
October 8, 2016
Mrs. Tricia Millhone
698 Pick Street
Richmond Hill, GA 19737
Subject: Sale of Premises located at 698 Pick Street
Dear Mrs. Millhone:
As per our conversation that took place on October 1, 2016, I am happy to write this letter of intent to sell 698 Pick Street, Richmond Hill, GA, to you – your present place of residence. Please refer to the terms and conditions that I have outlined here in the event that the sale does take place:
Total Purchase Price: As per the property market standards in Richmond Hill, the total set price of the property is $130,555.
Earnest Money: An earnest money deposit of $50,000 must be made upon opening of escrow. The remaining amount will be paid at the end of the contingency period.
Inspection Period: The prospective buyer is entitled to an inspection of all documentation associated with the property and its sales, within 30 days of the opening of escrow. If the buyer does not determine the paperwork to be suitable, she is entitled for a complete deposit return, unless the escrow period has expired.
Confidentiality: All aspects of this letter of intent to sell, and any agreements made in the future will be held in confidence by both seller and buyer, regardless of the closing of the deal.
This letter of intent is not legally binding on either party to buy or sell the said premises. A formal agreement will be made in the event that the terms and conditions in this letter are agreed upon. This letter of intent will be deemed void in case it is not accepted within 10 days of receipt of this letter.