This Letter of Intent Template is a written request for the purchase real estate property, private or City-owned developed or undeveloped land at the appraised value.
City Council must approve any property sale.
The buyer will be responsible for the appraisal, a subdivision to convey the property or a survey if it is required.
LETTER OF INTENT TEMPLATE
Letter of Intent to Purchase the Property at:
This letter constitutes a Letter of Intent (LOI) to purchase the above referenced property owned by __________________________________________________________. The terms and conditions under which Buyer would enter into a Purchase and Sale Agreement (Contract), which will be prepared by Seller or its counsel, are as follows:
Name of Buyer or Entity: ______________________________________________
Purchase Price: $_____________________________
Deposit: Upon mutual execution of the Contract, Buyer shall deposit the greater of _____________% of the Purchase Price or $___________________, in escrow with the Title Company designated by the Seller per below. The Deposit will become non-refundable at the expiration of the Review Period. In the event the transaction fails to close on or before the closing date as a result of a breach by the Buyer, the Seller shall retain the Deposit as liquidated damages.
If deemed necessary, an independent appraisal may be performed by an appraiser that is licensed by the state and on the list of approved appraisers. It is the responsibility of the buyer to pay all the expenses of the appraisal.
Buyer will be responsible for all closing costs, including costs of appraisal, survey and subdivision (if required), advertising costs, and any recording fees required by the County.
Review Period: Buyer shall have ___________ days from the Effective Date of the Contract to complete its due diligence, including physical inspection of the property and construction and review of pertinent documents such as building permits, zoning laws, property tax records and leases of any existing tenants, before signing a binding contract.
In the Contract, Buyer acknowledges that the sale of the Property to Buyer is made solely on an AS-IS, WHERE-IS, WITH ALL FAULTS basis. Copies of all data and work product compiled by or at the request of Buyer about the Property, including, but not limited to, all feasibility and property studies, audits, and environmental studies will be delivered to Seller (at no charge to Seller) when received by Buyer.
Seller shall provide buyer the title of the property free and clear of liens, except for non-delinquent taxes and bonds.
Additional Terms of Purchase:
The provisions of this Letter of Intent shall be construed according to, and otherwise governed by the laws of the State of _____________________.
Accepted and agreed by:
_______________________________ (Seller’s Printed Name)
_______________________________ (Seller’s Signature)
_______________________________ (Buyer’s Printed Name)
_______________________________ (Buyer’s Signature)