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Letter of Intent To Purchase

This letter of intent outlines the basic terms for a potential real estate purchase agreement between a buyer and seller. It specifies key deal points such as the property being purchased, purchase price, financing terms, earnest money deposit amount and timing, due diligence period and items to be provided, closing date, costs and commissions. The letter states that it is non-binding and that a formal purchase agreement will be drafted incorporating these proposed terms.

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Norr Mann
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1K views3 pages

Letter of Intent To Purchase

This letter of intent outlines the basic terms for a potential real estate purchase agreement between a buyer and seller. It specifies key deal points such as the property being purchased, purchase price, financing terms, earnest money deposit amount and timing, due diligence period and items to be provided, closing date, costs and commissions. The letter states that it is non-binding and that a formal purchase agreement will be drafted incorporating these proposed terms.

Uploaded by

Norr Mann
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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LETTER OF INTENT

This letter sets forth some of the basic terms under which Seller and Purchaser would be
interested in entering into a Real Estate Purchase Agreement. It serves as a letter of intent
(Letter) from _________________________ ("Purchaser") through and dated
______________, 2010, in which Purchaser has set forth its interest in acquiring the
subject Property. NEVERTHELESS, PLEASE BE ADVISED THAT THIS LETTER IS NOT
CONTRACTUALLY BINDING ON THE PARTIES AND IS ONLY AN EXPRESSION OF
THE BASIC TERMS AND CONDITIONS TO BE INCORPORATED IN A FORMAL
WRITTEN AGREEMENT.
PROPERTY:

PURCHASER:

____________________
____________________
____________________
(hereinafter, the Property)
____________________
____________________
____________________
____________________

SELLER:

c/o Silo Group, LLC


7800 W Sand Lake Rd, Suite 210
Orlando, FL 32819

PURCHASE PRICE:
The Purchase Price shall be $___________
FINANCING:
EARNEST MONEY
DEPOSIT:

_________________ dollars ($_________)


(Earnest Money) shall be placed in escrow
with the Title Company upon the execution of the
Purchase and Sale Agreement (defined below).
Upon expiration of the Due Diligence Period
(defined below) and provided Purchaser does not
terminate the Purchase and Sale Agreement
before expiration of the Due Diligence Period, the
Earnest Money shall become non-refundable.

DUE DILIGENCE ITEMS:

Within five (5) days after the Effective Date.


Seller, at its expense, shall provide Purchaser with
the following items, if any, in Seller's possession:

Tel (407) 745-1010 Fax (407) 369-4677 7800 W Sand Lake Rd, Suite 210, Orlando, FL 32819

a. A copy of the most recent


commitment for the Property
b. Lease
c. Survey
d. Environmental Report

title

Items (a) through (d) above and the updated title


commitment and updated survey, if applicable,
are hereinafter referred to as the Due Diligence
Items.
DUE DILIGENCE PERIOD:

Purchaser shall have up to ____________ (__)


days from the Effective Date (the Due Diligence
Period), to review the Due Diligence Items and to
enter upon the Property to inspect the physical
condition of the same, as it shall deem necessary.
On or before expiration of the Due Diligence
Period, Purchaser shall determine whether it is
feasible to purchase the Property based on
Purchasers review of the Due Diligence Items and
its physical inspection of the Property. If it is not
feasible for Purchaser to purchase the Property,
Purchaser may terminate the Purchase and Sale
Agreement.
If Purchaser so terminates, the
Earnest Money shall be returned to Purchaser, and
the Due Diligence Items shall be returned to
Seller.

CONTRACT:

Upon the mutual execution of this Letter, Seller


will promptly prepare a Purchase and Sale
Agreement and Seller shall make a good faith
effort to deliver said Purchase and Sale
Agreement to Purchaser within five (5) days
from the effective date of the LOI.

TRANSFER:

Special Warranty Deed or the equivalent thereof in


the State where the Property is located.

CLOSING:

Closing shall occur on a date mutually acceptable


to purchaser and seller, no later than ________
(__) days after the effective date.

CLOSING COSTS:

Closing Costs shall be paid according to local


custom, further detailed in the Purchase and Sale
Agreement.

SALES COMMISSION:

Purchaser and Seller each represent that no real

Tel (407) 745-1010 Fax (407) 369-4677 7800 W Sand Lake Rd, Suite 210, Orlando, FL 32819

estate broker, finder or intermediary has been


consulted or used in connection with the purchase
and sale of the Property except Silo Group, LLC.
Silo Group, LLC shall be compensated upon
Closing by Seller pursuant to a separate
agreement with Seller.
CONFIDENTIALITY:

Seller, Purchaser, and their agents shall maintain


the confidentiality of the parties, terms, and
conditions of this letter and the negotiations that
may follow, if any, from this date forth.

The above items are the general business terms and conditions to be covered in the
Purchase and Sale Agreement, which would be submitted to the Seller. Additional
remaining terms of the Purchase and Sale Agreement will be negotiated and must be
acceptable to both Purchaser and Seller.
This Letter is not intended to be a binding contract.
If this Letter accurately reflects the general business terms and conditions which may
form the basis of a separate written agreement, please confirm in writing no later
than ______________, 2010.
Buyer hereby agrees to the terms and conditions of the Letter.
By: ________________________________

____________________
Date

Name: _____________________________

____________________
Title

Seller hereby agrees to the terms and conditions of the Letter.


By: ________________________________

____________________
Date

Name: _____________________________

____________________
Title

Tel (407) 745-1010 Fax (407) 369-4677 7800 W Sand Lake Rd, Suite 210, Orlando, FL 32819

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