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LETTER OF INTENT FOR PURCHASE OF REAL PROPERTY

Date

_____________________________

_____________________________

_____________________________

Re: Letter of Intent (Property Description) (City/County)

Our File No. *

Dear _________________:

Subject to the execution of a definitive and mutually acceptable agreement of purchase and sale ("Purchase Agreement") within ________ (___) days after execution of this Letter of

Intent (the "Contract Negotiation Period"), the undersigned offers to purchase the subject property in accordance with the following terms and conditions:

1.Seller(s): ___________________________________, with contact information

as follows: ____________________________________________________________.

2.Buyer: _____________________________________, with contact information

as follows: ____________________________________________________________. Buyer may assign his interest to any corporation, partnership or limited liability company in which he is the controlling party or to any other third party without Seller approval.

3.Subject Property: The property, which is the subject of this offer ("Subject Property"), is identified as _______________________________ (APN No. __________). Together with the real property, Buyer is also purchasing all of Seller's rights, title and interest in all of the fixtures, improvements, leases, maps, reports, plans, and other such material is having to do with the Subject Property including all land use entitlements, governmental permits and allocations, and other such governmental and agency approvals as may exist concerning the

{WP.FORMS / 00246619.DOC.3}

FORM01.086 – Letter of Intent

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property. In addition, this offer to purchase includes the following specific items: ___________

____________________________________________.

4.Purchase Price: ___________________ ($________).

5.Terms of Purchase: ________________________________________________

___________________________________________________.

6.Opening of Escrow: Escrow ("the Purchase Escrow") shall be opened at

______________ Title Company within three (3) business days from execution of this Letter of Intent. The Purchase Agreement and Mutual Escrow Instructions shall be mutually prepared and executed by Buyer and Seller within ________ (___) days of execution by both parties of this Letter of Intent to purchase (the "Contract Negotiation Period").

7.Deposit Toward Purchase Price:

A.Initial Deposit: Concurrently with the opening of escrow, Buyer shall place therein the sum of ___________________________ Dollars ($____________) as a refundable deposit toward and applicable to the Purchase Price ("the Initial Deposit"). Escrow Holder shall deposit such sum in an interest-bearing, federally insured account with interest accruing for the benefit of Buyer.

B.Second Deposit: An additional non-refundable deposit of

__________________________ Dollars ($____________) shall be applicable to the Purchase Price and upon approval of the feasibility shall be released to Seller, inclusive of the Initial Deposit.

8.Feasibility Period: Buyer shall have until ________________ to perform all feasibility and due diligence for subject property. Seller shall fully cooperate with Buyer in

_____________________

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providing any and all information available regarding the development potential of the property. Buyer may terminate this Letter of Intent and/or the Purchase Agreement at any time prior to the end of the Feasibility Period for any reason or no reason at all upon written notification to Seller and Escrow Holder of the termination. Upon notice of termination, Escrow Holder shall be instructed to immediately release the Initial Deposit made by Buyer and return to Buyer within five (5) business days of termination.

9.Buyer's Condition Precedent to Closing: Following the expiration of the Feasibility Period, Buyer's obligation to close escrow shall be subject only to the following conditions:

A.Title Company shall be in position to issue a policy of title insurance to Buyer in the full amount of the Purchase Price showing good and marketable title vested in Buyer subject only to such exceptions to title as have been approved by Buyer during the Feasibility Period.

B.The non-existence of any development, building, construction, flood or moratoria affecting the Subject Property.

C.Seller to provide Buyer title to property free and clear of liens except for non-delinquent bonds and taxes.

10.Close of Escrow: Close of escrow to be on _______________________.

_____________________

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11.Other Provisions:

A.The Purchase Agreement may contain other provisions such as, but not limited to, a liquidated damages clause, attorney's fees, notices, mutual indemnifications, broker's commission, and the like.

B.Any and all documentation provided by Seller to Buyer shall be returned to Seller upon cancellation of this transaction.

12.Expiration of Offer: This Letter of Intent shall constitute an open offer until

____________, at which time it shall be automatically terminated if not executed by Seller.

If the above outline of terms and conditions are acceptable, please indicate by signing below. All parties to these transactions intend that this proposal be superseded by a the Purchase Agreement. In the meantime, all parties agree to proceed in accordance with terms and conditions outlined in this Letter of Intent. Seller understands the purpose of this Letter of Intent is to allow further investigation by both parties into the feasibility of entering into a formal agreement. This Letter of Intent is only binding on the parties during the Contract Negotiation period. If the Purchase Agreement is not mutually executed within the Contract Negotiation Period for any reason whatsoever or no reason at all, this Letter of Intent shall expire and no party shall have any further rights or duties hereunder. Seller shall not solicit other offers during the Contract Negotiation Period.

BUYER:

________________________________

Dated: _________________

SELLER:

________________________________

Dated: _________________

_____________________

_____________________

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Document Information

Fact Name Fact Description
Date of Intent This letter typically begins with a date, marking when the intent to purchase is expressed.
Parties Involved The letter identifies both the seller and buyer, along with their contact information, establishing clear communication channels.
Property Description It includes a detailed description of the property, often identified by its APN (Assessor's Parcel Number).
Purchase Price The letter specifies the proposed purchase price, providing a financial framework for the transaction.
Escrow Opening Escrow must be opened at a specified title company within three business days after signing the letter.
Deposit Requirements It outlines initial and second deposit amounts, including conditions for their application towards the purchase price.
Feasibility Period A designated timeframe is provided for the buyer to conduct due diligence on the property, allowing for informed decision-making.
Expiration of Offer The letter includes a clause indicating its validity period, after which the offer automatically terminates if not executed.

Letter To Purchase Land - Usage Guidelines

Completing the Letter To Purchase Land form is a crucial step in initiating a real estate transaction. This document outlines the intent of the buyer to purchase a specific property and sets the stage for further negotiations. Following these steps will help ensure that all necessary information is accurately provided.

  1. Date: Enter the current date at the top of the form.
  2. Property Description: Clearly state the description of the property, including the city or county it is located in.
  3. Recipient Name: Fill in the name of the seller or their representative.
  4. Seller Information: Provide the seller's name and contact information in the designated section.
  5. Buyer Information: Enter your name and contact information as the buyer.
  6. Subject Property: Identify the property by its address and APN (Assessor's Parcel Number). Include any specific items being purchased.
  7. Purchase Price: State the total purchase price in both words and numbers.
  8. Terms of Purchase: Outline any specific terms or conditions related to the purchase.
  9. Escrow Opening: Indicate the title company where escrow will be opened and the time frame for doing so.
  10. Deposit Toward Purchase Price: Specify the amounts for the initial and second deposits, noting any conditions related to these deposits.
  11. Feasibility Period: State the timeframe for conducting due diligence on the property and any conditions for terminating the agreement.
  12. Buyer's Condition Precedent to Closing: List any conditions that must be met before the closing of escrow.
  13. Close of Escrow: Indicate the anticipated closing date.
  14. Other Provisions: Mention any additional provisions that may be included in the Purchase Agreement.
  15. Expiration of Offer: Specify the date when the offer will expire if not accepted.
  16. Signature: Sign and date the form, ensuring both the buyer and seller have signed it.

Once the form is completed, it is essential to share it with the seller for review and signature. This step will initiate the process of negotiating a formal Purchase Agreement, allowing both parties to proceed with the transaction.

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Dos and Don'ts

When filling out the Letter to Purchase Land form, it is crucial to approach the task with care and attention to detail. Here are some important dos and don’ts to keep in mind:

  • Do ensure that all parties' names and contact information are accurate and complete.
  • Do clearly describe the subject property, including any relevant identification numbers.
  • Do specify the purchase price and any terms of payment in clear terms.
  • Do keep a copy of the completed form for your records.
  • Don't leave any sections blank; incomplete forms can lead to misunderstandings.
  • Don't use vague language; clarity is essential to avoid confusion later.
  • Don't forget to sign and date the document to validate your offer.

Common mistakes

  1. Incomplete Seller Information: Failing to provide complete contact details for the seller can lead to communication issues. Ensure that the seller's name, address, and phone number are fully filled out.

  2. Missing Buyer Details: Just like with the seller, leaving out any part of the buyer's information can cause delays. Double-check that the buyer's name and contact information are accurate.

  3. Undefined Property Description: Not clearly identifying the property can create confusion. Include the full address and any relevant identification numbers, such as the Assessor's Parcel Number (APN).

  4. Vague Purchase Price: Specifying an unclear or incomplete purchase price can lead to misunderstandings. Clearly state the total amount being offered for the property.

  5. Neglecting to Specify Terms: Leaving the terms of purchase blank or vague can result in disputes later. Outline any specific conditions or contingencies that apply to the purchase.

  6. Ignoring Escrow Details: Not including the title company or the timeframe for opening escrow can complicate the process. Be specific about the title company and the number of days for opening escrow.

  7. Unclear Feasibility Period: Not defining the feasibility period can lead to uncertainty. Clearly state the deadline for conducting due diligence on the property.

  8. Failure to Sign: Forgetting to sign the letter is a common oversight. Ensure that both the buyer and seller have signed and dated the document to make it valid.

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