An intent to purchase real estate letter documents the terms of a prospective offer on a piece of property.
- Documenting the terms of an offer on a piece of real property
- Securing financing for a real estate purchase
When you make an offer on a piece of real estate and it is accepted by the seller for some agreed-upon value, a legal contract is formed for the purchase of that real estate. These surprisingly simple requirements have taken some people by surprise, and case law is replete with examples of parties accidentally forming real estate contracts through conversation or an exchange of letters or emails.
Often, parties to a real estate negotiation want to put certain terms of a deal in writing. But, since negotiations are not yet over, they do not want to initiate contract formation by putting in an offer. In these circumstances, an intent to purchase real estate letter is a useful tool.
The intent to purchase real estate letter can resemble a contract, but it is are usually very concise and written in less formal language than a traditional real estate contract. Bullet points and tables are common in intent to purchase real estate letters, as these documents are meant to be a helpful way to make sure everyone is on the same page during negotiations over a piece of property.
Intent to purchase real estate letters are not binding, but they can be helpful to the buyer in securing financing. However, until an actual offer is made, the owner of a piece of real estate is free to sell it to any other buyer.