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Real Estate Letter Of Intent Template PDF Free Download
Real Estate Letter Of Intent
A real estate letter of intent implies a real estate transaction between two parties.
It could be for a rent deal between the homeowner and prospective tenant as well as a purchase letter of intent between the buyer and seller of a house or plot.
However, this is not the final agreement but then contains all vital information regarding the final contract.
A real estate letter of intent format template will have pre-designed space for basic information on both parties, property specifications, the price of purchase or rent amount and the commission of the broker involved.
It would also include the time frame of the LOI.
How a Letter of Intent Works
Step 1 – Buyer/Tenant Views the Property
The buyer or tenant will visit the property to evaluate the premises and determine whether the space suits their real estate needs.
It is always advised to perform a thorough walkthrough to test appliances, plumbing, window quality, and heating, and to check for visible material and structural defects.
Step 2 – The Parties Negotiate
If the buyer or tenant chooses to proceed with the transaction after assessing the property, they should immediately complete a letter of intent and present it to the owner for review.
This letter offers a general description of the proposed real estate transaction including the desired financial terms and completion dates.
Negotiations between the parties will likely continue if the owner is not satisfied with the initial offer.
Step 3 – Binding Arrangement is Made
Once the real estate conditions have been successfully negotiated, a binding contract should be drafted and carefully reviewed by each party.
The document used at this time will either be a purchase agreement or a lease depending on the nature of the relationship between the parties.
For purchase agreements, the parties may wish to have a lawyer examine the contract before entering into an officially binding contract.
However, for leases, the transaction will be finalized once the parties sign.
Purchase agreements typically contain a clause that grants the buyer a specified amount of time during which they can perform a proper inspection of the premises.
If the property fails to meet its standards, the buyer can usually back out of the agreement or negotiate new terms with the owner.
The inspection should be performed by a qualified professional as they can more easily spot issues that might affect the value of the property going forward.
If the buyer is satisfied with the inspection results, or if no inspection is performed during the inspection period, the buyer’s offer will be accepted, and the property shall be transferred to their name following the closing period.
The closing is a predetermined date when ownership of the property is officially transferred to the buyer.
Depending on the state where the property resides, the parties may need to meet in person along with various entities (e.g., notary, escrow company, titling insurance agent) to complete the transaction, or they may be able to conclude the process separately.
Regardless of the closing method, it will always involve the parties signing the necessary paperwork and paying the fees associated with the transfer of ownership.
Is a Letter of Intent Binding?
It is up to the parties to determine whether the letter is legally binding.
After this decision is made, a statement indicating the binding status of the document should be incorporated into the language of the form.
Without such a written declaration, it will be far more challenging to enforce the validity of the agreement in court, and the case would likely be dismissed due to the uncertainty of the letter’s intent
| Author | – |
| Language | English |
| No. of Pages | 3 |
| PDF Size | 1 MB |
| Category | fORM |
| Source/Credits | eforms.com |
Real Estate Letter Of Intent Template PDF Free Download