Ensure Smooth Home Buying with a Stellar Letter of Intent
Before purchasing a home, one crucial step often required to secure financing is drafting a Letter of Intent (LOI). This document articulates the buyer’s intention to acquire a specific piece of property and justifies the establishment of a real estate contract. It typically accompanies the deposit of earnest money, solidifying the buyer’s commitment to the purchase.
What Should an LOI Include?§
A Letter of Intent can be either handwritten or typed, and may also take the form of a template with fillable blanks for detailed information. Here’s what you generally need to include:
- Buyer’s Name(s): Full legal names of all parties intending to purchase the property.
- Property Information: Address and legal description of the property in question.
- Sale Amount: Agreed-upon price for the property.
- Date: Relevant dates, including when the agreement takes effect or proposed closing date.
Signing and Formalities§
The letter typically requires signatures from the buyer(s), seller(s), and real estate agent. In some states, notarization may also be necessary to validate the document.
An effectively drafted Letter of Intent not only confirms the mutual understanding between buyer and seller but also lays the groundwork for the final purchase agreement. Draft your LOI with precision to ensure a seamless home buying experience.
Related Terms: real estate contract, earnest money deposit, property purchase agreement.
