A letter of intent is sent by a potential buyer in the early stages of a real estate deal, in order to expose the offer and establish a working basis for further negotiations with the seller. These letters are most commonly used for buying a house, but can also be used for renting. Read this article to learn how to write a letter of intent for a home, what types of information to include (and what types not to include) and how to ensure that your letter of intent is not legally binding.
Steps
Method 1 of 1: Writing a Letter of Intent for a House
Step 1. Address the letter to the seller, using your full personal or company name, main address and contact information
Date the letter. "Bella Casa Real Estate Agency Dr. Mario Rossi Via della Spiga 12, 20121 Milan Telephone: 02-456677899 E-mail: [email protected]. To interested parties:"
Step 2. In the first sentence, indicate that you (using your full name) declare that you are interested in buying or renting the property
Include the address of the property and everything that will be included, including furniture, land or other elements. "I, Mario Rossi, a real estate agent, am writing this letter to declare my interest in buying your property located in via Montenapoleone 4 in Milan".
Step 3. In the second sentence, make your offer
"I am willing to pay 243,500 euros for this property. Included in the purchase proposal are: • The house, land and properties associated with the above address • All furnishings and appliances included in the property list".
Use a phrase like "[The buyer] is willing to pay…" or "The buyer's offer is…". If you are proposing to rent the house, indicate if the figure refers to a weekly, monthly, annual or multi-year rent and how soon the payment will be made (every month, every year, etc.)
Step 4. Offer to make a deposit or down payment for the property
"I propose to pay an initial deposit of 25,000 euros as an act of good faith. I would like to pay the deposit two weeks after the agreement."
This will serve as a demonstration of your good faith and the seller should accept your offer. A typical deposit is 10% of the total price or two months' rent
Step 5. Indicate how and when you intend to pay for the purchase or rent of the house
"The buyer has been granted a loan by the Banca Nazionale del Lavoro to receive the necessary funds for the purchase of the property. If we reach an agreement, I undertake to pay according to the following schedule. Date: 1/10 / 2013Deposit: € 25,000 Monthly payment: € 1,248 Payment term: 15 years ".
Instead of indicating a specific date, use terms such as "two weeks from the time of agreement". Include details about any real estate agents, banks, or lenders you will be working with and whether you will pay for everything together or in installments
Step 6. Indicate a short period of time during which you will be able to view the property
"I would like to visit the property between 5/8/2013 and 12/8/2013 in order to evaluate the interior and exterior and check that everything is in order".
Be specific about the nature of your visit, a ride to explore the property, for example, a tax check or to collect other data
Step 7. Propose a date to sign the sales or purchase agreement
"If you think these conditions are acceptable, I would like to sign the lease on 1/09/2013".
Step 8. Conclude with a paragraph specifying that the letter is not legally binding
"This letter does not bind the buyer or seller to any offer, financial or otherwise".
You explicitly write that "this letter does not bind the buyer or seller to any offer, financial or otherwise"
Step 9. Sign and date the letter
Yours sincerely, Mario Rossi, real estate agent
2013-07-29".
