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Letters of Intent For Real Estate (Pre-Negotiation Agreement)

by | Jan 17, 2019

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A Letter of Intent for real estate, also often referred to as a Pre-Negotiation Agreement, is a written statement that details the preliminary understanding of people who plan to enter into a real estate contract.

What Is A Letter Of Intent For Real Estate
Letters of Intent for real estate can be the first step toward defining a formal, final agreement. Buyers and sellers sometimes prefer to start with a letter of intent, because they’re quicker, less complicated, and less expensive than a full-on Purchase And Sales Agreement.

It’s important to note, however, that Letters of Intent – or certain provisions within them – might or might not be legally binding, depending on the specific wording in the document.

Provisions In A Letter Of Intent For Real Estate
Letters of Intent for real estate often include:

  • property description
  • purchase price
  • payment terms and deposits
  • deadlines for due diligence, inspections, and obtaining financing
  • contingencies
  • assurances that there’s a mutual understanding between the buyer and seller
  • a good faith clause
  • a confidentiality clause
  • an exclusivity clause

Types Of Real Estate
A Letter of Intent can be used for the purchase or sale of any type of real estate, including:

  • single-family homes
  • condos, townhomes, and duplexes
  • vacant land
  • commercial real estate
  • commercial leases

We’d be happy to review or draft a Letter of Intent for you and review or draft your contract.

See also: Purchase and Sales Agreements For Real Estate (Residential and Commercial)

At Timely Contract, we have local real estate attorneys who have experience throughout Idaho, including: Boise, Post Falls, Coeur d’Alene, Lewiston, Moscow, and Sandpoint.

We also have local real estate attorneys who have experience throughout Montana, including: Missoula, Billings, Bozeman, and Kalispell.

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