Content Overview
Guide to Writing Letter To Purchase Land
Once you have gathered all necessary information, you can begin filling out the Letter To Purchase Land form. This form is essential for initiating the process of purchasing a property. Follow these steps carefully to ensure that all required details are accurately provided.
- Date: Write the date on which you are completing the letter at the top of the form.
- Property Description: Fill in the specific details about the property, including the city or county where it is located.
- Recipient Name: Enter the name of the seller in the designated space.
- Seller Information: Provide the seller's name and contact information, including address and phone number.
- Buyer Information: Fill in your name as the buyer along with your contact information.
- Subject Property: Specify the property being purchased, including the APN (Assessor’s Parcel Number).
- Purchase Price: State the proposed purchase price in both words and numbers.
- Terms of Purchase: Outline any specific terms related to the purchase.
- Escrow Information: Identify the title company where the escrow will be opened and the time frame for doing so.
- Deposit Details: Indicate the amount of the initial and second deposits, specifying which is refundable and which is non-refundable.
- Feasibility Period: Note the deadline for conducting feasibility and due diligence on the property.
- Buyer's Conditions: List any conditions that must be met before closing the escrow.
- Close of Escrow: Specify the proposed closing date.
- Other Provisions: Mention any additional provisions that may apply to the purchase agreement.
- Expiration of Offer: Write the expiration date of the offer.
- Signatures: Ensure that both the buyer and seller sign and date the letter at the end.
After completing the form, review it for accuracy and clarity. Once both parties have signed, you can move forward with the next steps in the purchasing process, including negotiations and formalizing the purchase agreement.
Document Breakdown
| Fact Name | Description |
|---|---|
| Date of Letter | The letter begins with a space for the date, indicating when the intent to purchase is being communicated. |
| Parties Involved | It identifies the seller and buyer, including their contact information, ensuring clear communication. |
| Subject Property | The property being purchased is described in detail, including its APN (Assessor's Parcel Number) for precise identification. |
| Purchase Price | The form includes a section for stating the purchase price, which is crucial for both parties to agree upon. |
| Escrow Opening | It specifies that escrow must be opened within three business days after the letter is executed, promoting timely action. |
| Feasibility Period | The buyer has a designated time frame to conduct due diligence on the property, allowing for informed decision-making. |
| Expiration of Offer | The letter includes an expiration date for the offer, ensuring that the seller cannot consider the offer indefinitely. |
FAQ
What is a Letter to Purchase Land?
A Letter to Purchase Land is a formal document expressing a buyer's intention to purchase a specific piece of real estate. It outlines the key terms and conditions under which the buyer is willing to negotiate a purchase agreement with the seller. This letter serves as a preliminary step before drafting a more detailed purchase agreement.
What information should be included in the letter?
The letter should include several important details, such as:
- The names and contact information of both the buyer and seller.
- A description of the property, including its location and any relevant identification numbers.
- The proposed purchase price.
- Details about the deposit, including the initial and any subsequent deposits.
- Timeframes for escrow opening, feasibility periods, and closing.
- Any conditions that must be met before the sale can be finalized.
Is the Letter to Purchase Land legally binding?
The Letter to Purchase Land is generally not legally binding in the same way a formal purchase agreement is. It serves as an expression of intent and allows for further negotiation. However, it can create certain obligations during the negotiation period, such as the seller not soliciting other offers.
What is the purpose of the feasibility period?
The feasibility period allows the buyer to conduct due diligence on the property. This may include inspections, obtaining financing, or reviewing zoning laws. The buyer can terminate the letter or the subsequent purchase agreement if they find any issues during this time, providing a layer of protection for the buyer.
What happens if the buyer decides to back out during the feasibility period?
If the buyer chooses to back out during the feasibility period, they must notify the seller and the escrow holder in writing. Upon termination, the initial deposit is typically returned to the buyer within five business days. This ensures that the buyer can exit the transaction without losing their deposit, provided they act within the agreed timeframe.
How long is the Letter to Purchase Land valid?
The letter will specify an expiration date. If the seller does not execute the letter by that date, it will automatically terminate. This timeframe encourages both parties to act promptly in negotiating a formal purchase agreement.
Can the buyer assign their interest in the property?
Fill out Other Forms
Health Insurance Marketplace Statement - In cases of discrepancies, the IRS has procedures for addressing and resolving them.
For those looking for an efficient way to manage their finances, using the Chase Print Counter Checks form can be beneficial, particularly when combined with resources like the Blank Check Template, which assists in preparing the necessary checks quickly and accurately.
Philadelphia Utility Company - Keep copies of all submitted documents for personal records and reference.
Letter To Purchase Land Example
SAMPLE
LETTER OF INTENT FOR PURCHASE OF REAL PROPERTY
Date
_____________________________
_____________________________
_____________________________
Re: Letter of Intent (Property Description) (City/County)
Our File No. *
Dear _________________:
Subject to the execution of a definitive and mutually acceptable agreement of purchase and sale ("Purchase Agreement") within ________ (___) days after execution of this Letter of
Intent (the "Contract Negotiation Period"), the undersigned offers to purchase the subject property in accordance with the following terms and conditions:
1.Seller(s): ___________________________________, with contact information
as follows: ____________________________________________________________.
2.Buyer: _____________________________________, with contact information
as follows: ____________________________________________________________. Buyer may assign his interest to any corporation, partnership or limited liability company in which he is the controlling party or to any other third party without Seller approval.
3.Subject Property: The property, which is the subject of this offer ("Subject Property"), is identified as _______________________________ (APN No. __________). Together with the real property, Buyer is also purchasing all of Seller's rights, title and interest in all of the fixtures, improvements, leases, maps, reports, plans, and other such material is having to do with the Subject Property including all land use entitlements, governmental permits and allocations, and other such governmental and agency approvals as may exist concerning the
{WP.FORMS / 00246619.DOC.3} |
FORM01.086 – Letter of Intent |
_____________________
_____________________
Page 2
property. In addition, this offer to purchase includes the following specific items: ___________
____________________________________________.
4.Purchase Price: ___________________ ($________).
5.Terms of Purchase: ________________________________________________
___________________________________________________.
6.Opening of Escrow: Escrow ("the Purchase Escrow") shall be opened at
______________ Title Company within three (3) business days from execution of this Letter of Intent. The Purchase Agreement and Mutual Escrow Instructions shall be mutually prepared and executed by Buyer and Seller within ________ (___) days of execution by both parties of this Letter of Intent to purchase (the "Contract Negotiation Period").
7.Deposit Toward Purchase Price:
A.Initial Deposit: Concurrently with the opening of escrow, Buyer shall place therein the sum of ___________________________ Dollars ($____________) as a refundable deposit toward and applicable to the Purchase Price ("the Initial Deposit"). Escrow Holder shall deposit such sum in an
B.Second Deposit: An additional
__________________________ Dollars ($____________) shall be applicable to the Purchase Price and upon approval of the feasibility shall be released to Seller, inclusive of the Initial Deposit.
8.Feasibility Period: Buyer shall have until ________________ to perform all feasibility and due diligence for subject property. Seller shall fully cooperate with Buyer in
_____________________
_____________________
Page 3
providing any and all information available regarding the development potential of the property. Buyer may terminate this Letter of Intent and/or the Purchase Agreement at any time prior to the end of the Feasibility Period for any reason or no reason at all upon written notification to Seller and Escrow Holder of the termination. Upon notice of termination, Escrow Holder shall be instructed to immediately release the Initial Deposit made by Buyer and return to Buyer within five (5) business days of termination.
9.Buyer's Condition Precedent to Closing: Following the expiration of the Feasibility Period, Buyer's obligation to close escrow shall be subject only to the following conditions:
A.Title Company shall be in position to issue a policy of title insurance to Buyer in the full amount of the Purchase Price showing good and marketable title vested in Buyer subject only to such exceptions to title as have been approved by Buyer during the Feasibility Period.
B.The
C.Seller to provide Buyer title to property free and clear of liens except for
10.Close of Escrow: Close of escrow to be on _______________________.
_____________________
_____________________
Page 4
11.Other Provisions:
A.The Purchase Agreement may contain other provisions such as, but not limited to, a liquidated damages clause, attorney's fees, notices, mutual indemnifications, broker's commission, and the like.
B.Any and all documentation provided by Seller to Buyer shall be returned to Seller upon cancellation of this transaction.
12.Expiration of Offer: This Letter of Intent shall constitute an open offer until
____________, at which time it shall be automatically terminated if not executed by Seller.
If the above outline of terms and conditions are acceptable, please indicate by signing below. All parties to these transactions intend that this proposal be superseded by a the Purchase Agreement. In the meantime, all parties agree to proceed in accordance with terms and conditions outlined in this Letter of Intent. Seller understands the purpose of this Letter of Intent is to allow further investigation by both parties into the feasibility of entering into a formal agreement. This Letter of Intent is only binding on the parties during the Contract Negotiation period. If the Purchase Agreement is not mutually executed within the Contract Negotiation Period for any reason whatsoever or no reason at all, this Letter of Intent shall expire and no party shall have any further rights or duties hereunder. Seller shall not solicit other offers during the Contract Negotiation Period.
BUYER:
________________________________ |
Dated: _________________ |
SELLER:
________________________________ |
Dated: _________________ |
_____________________
_____________________
Page 5