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Residential Real Estate Letter of Intent Template
Clearly summarize the main terms of a proposed house, condo, or apartment purchase in a simple, non-binding letter.
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Residential Real Estate Letter of Intent Template
[Buyer Name]
[Buyer Street Address]
[City, State/Province, ZIP/Postal Code, Country]
Phone: [Buyer Phone Number]
Email: [Buyer Email Address]
[Date]
[Seller Name]
[Seller Street Address]
[City, State/Province, ZIP/Postal Code, Country]
Re: Residential Real Estate Letter of Intent – [Property Street Address]
Dear [Seller Name or “Sir/Madam”],
This Residential Real Estate Letter of Intent (“LOI”) sets forth certain preliminary terms and conditions under which [Buyer Name] (“Buyer”) proposes to purchase from [Seller Name] (“Seller”) the residential property described below (the “Property”). Except as expressly stated in Section 10 (Binding and Non-Binding Provisions), this LOI is intended as a non-binding outline of key terms and a basis for preparing a formal purchase and sale agreement (the “Definitive Agreement”).
1. Parties and Property
1.1 Buyer
Buyer Name: [Buyer Name]
Entity Type (if applicable): [Individual / Entity Type]
Buyer Address: [Buyer Address]
1.2 Seller
Seller Name: [Seller Name]
Entity Type (if applicable): [Individual / Entity Type]
Seller Address: [Seller Address]
1.3 Property
Street Address: [Property Street Address]
City, State/Province, ZIP/Postal Code, Country: [City, State/Province, ZIP/Postal Code, Country]
Legal Description (if known): [Legal Description]
Property Type: [Single-Family Home / Condominium / Townhouse / Cooperative / Other]
Unit Number (if applicable): [Unit Number]
2. Purchase Price and Payment Terms
2.1 Purchase Price
The total purchase price for the Property is expected to be:
Purchase Price: [Currency and Amount]
2.2 Payment Terms
The Purchase Price is expected to be paid as follows:
Earnest Money Deposit: [Currency and Amount] (see Section 3).
Balance of Purchase Price: [Currency and Amount] payable in cleared funds at closing, subject to prorations and adjustments described in the Definitive Agreement.
3. Earnest Money Deposit
3.1 Deposit and Escrow
Within [Number] business days after execution of the Definitive Agreement, Buyer will deposit the earnest money described above (the “Earnest Money”) with the following escrow agent or title company:
Escrow Agent / Title Company: [Name]
Address: [Address]
3.2 Treatment of Earnest Money
The Earnest Money will be applied to the Purchase Price at closing or handled as provided in the Definitive Agreement if the transaction does not close.
4. Financing and Cash Terms
4.1 Financing
Buyer expects to fund the Purchase Price as follows:
Loan Amount: [Currency and Amount or Percentage of Purchase Price]
Lender (if known): [Lender Name]
4.2 Financing Contingency (If Applicable)
Buyer’s obligation to close will be contingent on Buyer obtaining financing on terms acceptable to Buyer in at least the amount described above within [Number] days after execution of the Definitive Agreement.
[If no financing contingency is intended: “Buyer expects to pay the full Purchase Price in cash at closing and does not anticipate a financing contingency.”]
5. Inspections, Appraisal, and Due Diligence
5.1 Inspection Contingency
Buyer will have a period of [Number] days after the effective date of the Definitive Agreement (the “Inspection Period”) to conduct inspections of the Property, including structural, mechanical, electrical, plumbing, roof, pest, and other inspections as Buyer deems appropriate.
5.2 Access to Property
During the Inspection Period, Seller will provide Buyer and Buyer’s inspectors with reasonable access to the Property at reasonable times upon prior notice, subject to existing occupant rights and any community rules.
5.3 Appraisal Contingency (If Applicable)
If required by Buyer or Buyer’s lender, the transaction may be contingent on an appraised value of not less than [Currency and Amount] or [Percentage]% of the Purchase Price.
5.4 Homeowners’ Association and Community Documents (If Applicable)
If the Property is subject to a homeowners’ association or similar community organization, Seller will provide Buyer with available governing documents, rules, and fee information for Buyer’s review within [Number] days after the effective date of the Definitive Agreement.
6. Personal Property and Inclusions
The following items are expected to be included in the sale with no additional charge, unless prohibited by law or lender requirements:
Included Items: [List of items such as appliances, window treatments, light fixtures, built-in furniture, etc.]
Excluded Items (if any): [List of excluded items]
7. Closing and Possession
7.1 Target Closing Date
Subject to satisfaction or waiver of the contingencies described above, the closing of the purchase and sale (the “Closing”) is expected to occur on or about:
Target Closing Date: [Target Closing Date]
7.2 Location and Method of Closing
Closing may occur at the offices of the Escrow Agent, at a closing attorney’s office, or by mail or electronic exchange of documents, as agreed by the parties.
7.3 Possession
Possession of the Property is expected to be delivered to Buyer on:
Possession Date: [Same as Closing Date / Other Date]
Condition at Possession: [Vacant and broom-clean / As agreed in Definitive Agreement]
8. Closing Costs, Taxes, and Prorations
The parties anticipate the following general allocation of closing costs, subject to local custom and the Definitive Agreement:
Seller to pay: [Items such as transfer taxes, Seller’s share of escrow/attorney fees, real estate commissions].
Buyer to pay: [Items such as loan charges, recording fees, Buyer’s share of escrow/attorney fees, title insurance policy premiums as applicable].
Real estate taxes, association dues, rents (if any), and utilities are expected to be prorated as of the Closing Date according to the Definitive Agreement.
9. Brokers and Agents (If Any)
Buyer is represented by: [Buyer’s Broker / Agent Name or “None”]
Seller is represented by: [Seller’s Broker / Agent Name or “None”]
Responsibility for any brokerage or agent commissions will be addressed in the Definitive Agreement or separate written agreements with the brokers or agents involved.
10. Binding and Non-Binding Provisions
10.1 Non-Binding Terms
Except as expressly stated in Section 10.2, this LOI is a statement of current intentions only and is not a binding agreement to buy or sell the Property, to enter into the Definitive Agreement, or to complete the transaction. Either party may discontinue negotiations at any time without liability based on this LOI.
10.2 Binding Provisions
The parties intend that the following provisions will be legally binding once this LOI is signed and delivered by both Buyer and Seller:
Confidentiality of this LOI and any non-public information shared in connection with it, except as required by law or as needed to consult with professional advisers and lenders.
Any exclusivity or “no-shop” agreement set out in this Section 10.2 or additional wording below.
This Section 10.2 itself and Section 11 (Governing Law and Dispute Resolution).
[Optional Exclusivity: “For a period of [Number] days from the date of Seller’s signature below, Seller will not enter into a binding agreement to sell the Property to any other party.”]
All other terms in this LOI are non-binding and may be changed, supplemented, or omitted in the Definitive Agreement.
11. Governing Law and Dispute Resolution
This LOI (to the extent of the Binding Provisions) will be governed by and construed in accordance with the laws of [State/Province, Country], without regard to conflict-of-law rules. Any dispute arising out of the Binding Provisions of this LOI will be resolved in [Court or Arbitration Forum and Location], unless the parties later agree otherwise in the Definitive Agreement.
12. Expiration
If this LOI is not signed by both Buyer and Seller on or before [Expiration Date], it will expire and have no further effect unless extended in writing by both parties.
13. Signatures
If the terms of this LOI are acceptable as a basis for preparing the Definitive Agreement, please sign below to indicate your agreement to the Binding Provisions in Sections 10 and 11 and your agreement in principle to the non-binding business terms described above.
Buyer
[Buyer Name]
By: _______________________________
Name: [Buyer Name or Authorized Signatory]
Title (if applicable): [Title]
Date: [Date]
Seller
[Seller Name]
By: _______________________________
Name: [Seller Name or Authorized Signatory]
Title (if applicable): [Title]
Date: [Date]
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Learn more about
Residential Real Estate Letter of Intent Template
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For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
RESIDENTIAL REAL ESTATE LETTER OF INTENT TEMPLATE FAQ
What is a Residential Real Estate Letter of Intent?
A Residential Real Estate Letter of Intent (LOI) is a short document where a buyer sets out the main terms on which they would like to purchase a residential property. It usually describes the property, proposed purchase price, earnest money, contingencies, and expected closing date.
Is a residential real estate LOI legally binding?
Often, the business terms in a residential LOI (such as price and timing) are described as non-binding, while certain parts — like confidentiality, access for inspections, or a short exclusivity period — may be written as binding. Whether a specific LOI is binding depends on its wording and applicable law, so the letter should clearly state which sections are binding and which are not.
When should I use a Residential Real Estate Letter of Intent?
Use this LOI when a buyer and seller want to confirm the main terms of a possible home purchase in writing before hiring professionals to draft a detailed purchase agreement. It can be helpful in private sales, multi-offer situations, or when parties want to outline expectations before moving forward.
What should a Residential Real Estate LOI include?
A clear LOI should identify the buyer and seller, describe the home or unit, state the proposed purchase price and earnest money, set out key contingencies (such as inspection, financing, and appraisal), note what personal property is included or excluded, outline the proposed closing date, and explain which provisions are binding and which are not.
Does this LOI replace a residential purchase agreement?
No. This LOI is usually only a preliminary outline of agreed terms. The detailed rights and obligations of the parties are set out in a formal residential purchase and sale agreement that is drafted and signed after the LOI, often with help from real estate professionals or attorneys.
Can AI Lawyer help me customize this Residential Real Estate Letter of Intent template?
Yes. AI Lawyer can help you adapt this Residential Real Estate Letter of Intent template by adjusting property details, price and deposit terms, contingencies, and binding language so the document better matches your situation while remaining clear and easy to read.
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