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Draft a Letter of Intent to Purchase for a prospective buyer
Letter of Intent to Purchase
Introduction
A Letter of Intent (LOI) to Purchase is a formal document that outlines the preliminary understanding between a buyer and a seller regarding the terms and conditions of a potential purchase. This document is not legally binding but serves as a roadmap for the negotiation process and helps both parties to clarify their intentions before entering into a formal agreement. Below is a sample Letter of Intent to Purchase tailored for a prospective buyer in Kenya.
Table of Contents
Purpose of the Letter
Details of the Buyer and Seller
Description of the Property
Proposed Purchase Price and Payment Terms
Due Diligence
Confidentiality
Exclusivity
Closing Date
Governing Law
Acceptance
1. Purpose of the Letter
The purpose of this Letter of Intent (LOI) is to outline the preliminary terms and conditions under which [Buyer's Full Name] ("Buyer") intends to purchase the property located at [Property Address] ("Property") from [Seller's Full Name] ("Seller"). This LOI is intended to serve as a basis for the preparation of a formal and binding Purchase Agreement.
2. Details of the Buyer and Seller
Buyer:
Name: [Buyer's Full Name]
Address: [Buyer's Address]
Contact Information: [Buyer's Phone Number and Email Address]
Seller:
Name: [Seller's Full Name]
Address: [Seller's Address]
Contact Information: [Seller's Phone Number and Email Address]
3. Description of the Property
The Property subject to this LOI is described as follows:
Location: [Property Address]
Size: [Property Size in Acres/Square Feet]
Description: [Brief Description of the Property, including any structures, features, or notable characteristics]
4. Proposed Purchase Price and Payment Terms
The Buyer proposes to purchase the Property for a total purchase price of Ksh [Proposed Purchase Price]. The payment terms are as follows:
Initial Deposit: Ksh [Initial Deposit Amount] to be paid upon signing the Purchase Agreement.
Balance Payment: Ksh [Balance Amount] to be paid at the closing date.
5. Due Diligence
The Buyer shall have a period of [Number of Days] days from the date of this LOI to conduct due diligence on the Property. This due diligence period will include, but is not limited to, the following:
Title Search
Property Inspection
Environmental Assessment
Review of any existing leases or agreements related to the Property
6. Confidentiality
Both parties agree to keep the terms and conditions of this LOI confidential and not to disclose any information to third parties without the prior written consent of the other party, except as required by law.
7. Exclusivity
The Seller agrees that for a period of [Number of Days] days from the date of this LOI, the Seller will not negotiate or enter into any agreements with any other party regarding the sale of the Property.
8. Closing Date
The closing date for the purchase of the Property shall be on or before [Closing Date], subject to the satisfactory completion of due diligence and the execution of a formal Purchase Agreement.
9. Governing Law
This LOI shall be governed by and construed in accordance with the laws of the Republic of Kenya.
10. Acceptance
If the terms and conditions outlined in this LOI are acceptable, please sign and return a copy of this letter by [Acceptance Deadline Date]. Upon receipt of the signed LOI, both parties will proceed with the preparation of a formal Purchase Agreement.
Buyer:
[Buyer's Full Name]
Date: [Date]
Seller:
[Seller's Full Name]
Date: [Date]
Conclusion
A Letter of Intent to Purchase is a crucial step in the property acquisition process. It helps to outline the basic terms and conditions of the potential purchase, ensuring that both parties are on the same page before moving forward with a formal agreement. This sample LOI provides a comprehensive framework that can be customized to fit the specific needs of the buyer and seller.
TLDR: A Letter of Intent to Purchase is a preliminary document outlining the terms and conditions of a potential property purchase. It includes details about the buyer and seller, property description, proposed purchase price, payment terms, due diligence, confidentiality, exclusivity, closing date, and governing law. This document is not legally binding but serves as a basis for further negotiations and the preparation of a formal Purchase Agreement.
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Answered by mwakili.com