Letter of Intent to Purchase Land

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Your Name
Your Address
Your City, State, Zip Code
Your Phone Number
Your Email

Date

Name
Company
Address
City, State, Zip Code

Re: Letter of Intent to Purchase Land Property
(Property Description)
(City / County)
File Number / Property Registration Number:

Dear [Name of Addressee]:

Subject to the execution of a future definitive and mutually acceptable agreement of purchase of sale (“Purchase Agreement”) within [number of days in words] ([number of days in digits]) after the execution of this Letter of Intent (“Contract Negotiation Period”), the undersigned offers to purchase the subject property in accordance of the following terms and conditions:

Seller(s): [Complete Full and Legal Name of Seller/s], with contact information as follows: [Contact details such as phone number and / or email address].

Buyer: [Complete Full and Legal Name of Buyer], with contact information as follows: [Contact details such as phone number and / or email address].

The Buyer can and may decide to assign proxy to look over his interests in any corporation, partnership, or limited liability company in which he/she is the controlling party to any other third party, without the need for Seller approval.

Subject Property: The property subject to this offer (“Subject Property”) is identified to formally as [property registration information including APN Number if applicable].

Along with the Real Property stated in this document, the Buyer shall also purchase the Seller’s rights to the title and interests in all of the fixtures, improvements, leases, maps, reports, plans, and other such material in relation with Subject Property, including all land use entitlements, government permits and allocations, as well as other such government and agency approvals that may exist concerning the property. In addition, this intent to purchase also include the following specific items: [specify additional items].

Purchase Price: [Price in words] ([price in digits]).

Terms of Purchase: [Insert in detail other terms of purchase of the property. This may include back financing, interest rates, mortgage security, conditions in case of purchaser default, stipulations, leasing provisions, and other such special considerations as agreed upon by both the Buyer and the Seller during negotiation].

Opening of Escrow: Escrow (“Purchase Escrow”) shall be opened at [date] within [number of days in words] ([number of days in digits]) business days from the execution of this Letter of Intent. The Purchase Agreement and Escrow Instructions shall be mutually prepared and executed by the Buyer and the Seller within [number of days in words] ([number of days in digits]) days of execution by both parties subject to this Letter of Intent to Purchase.

Deposit toward Purchase Price:

Initial Deposit: Concurrent with the opening of the Escrow, the Buyer shall deposit therein the sum of [amount in words] ([amount in digits]) as a refundable deposit towards the Purchase Price (“Initial Deposit”). Escrow holder shall deposit the sum in an interest-bearing, federally insured account. The interest accrued shall be for the benefit of the Buyer.

Second Deposit: An additional non-refundable deposit of [amount in words] ([amount in digits]) shall be applicable to the Purchase Price upon the approval of the feasibility report of the Property. Such amount shall be released to the Seller, including the amount secured in the Initial Deposit.

Feasibility Period : The Buyer shall have until [date agreed upon by both parties] to perform all feasibility and due diligence required for the Subject Property. Seller shall then fully cooperate with the Buyer in providing any and all information made available regarding the development potential of the Subject Property.

It is at Buyer’s discretion to terminate this Letter of Intent and / or the Purchase Agreement at any time before the end of the Feasibility Period for any or no reason at all, upon the delivery of a written notification to Seller and Escrow Holder in regards to the termination. After submitting the notice of termination, the Escrow Holder shall be instructed to release the Initial Deposit made by the Buyer, and return such amount within five (5) business days upon such termination.

Buyer Conditions Precedent to Closing of Purchase: Upon the expiration of the Feasibility Period, the Buyer may opt to close escrow, subject to the following conditions:

• Title Company shall be in position to issue a policy of title insurance to the Buyer in the full amount of the Purchase Price, showing in the document the marketable title vested in the Buyer, subject only to exceptions to the title as approved by the Buyer during the Feasibility Period.
• The non-existence of any development, building, construction, floor, or other moratoria affecting the Subject Property.
• The Seller shall provide the Buyer title to the property, free and clear of liens, except for non-delinquent bonds and taxes.

Closing of Escrow: The Escrow shall close on [date agreed for closing].

Other Provisions: The Purchase Agreement may contain other provisions for the sale of the property, including but not limited to a liquidated damages clause, attorney’s fees, notices, mutual indemnifications, and broker’s commission.

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

Expiration of Offer: This Letter of Intent shall constitute an open offer until [date of expiration as agreed by both parties]. Upon such time, said offer shall be automatically terminated if not executed by the Seller.

All parties to these transactions intend that this Letter of Intent shall be superseded by a Purchase Agreement. All parties agree to proceed in accordance to the terms and conditions outlined in this Letter of Intent. Seller understands that the purpose of this Letter is to allow further investigation from both parties during the Contract Negotiation Period.

If the Purchase Agreement is not mutually executed within the stated Contract Negotiation Period for any reason, or for no reason whatsoever, this Letter of Intent shall be deemed expired, and no party shall have any further rights or duties hereunder. The Seller shall not be allowed to solicit other offers during the Negotiation Period.

If the above terms and conditions are deemed acceptable, please indicate by signing on the indicated space below.

BUYER:

[Full legal Name and Signature of Buyer] Dated: _________________

SELLER:

[Full legal Name and Signature of Seller] Dated: _________________