A letter of intent to purchase can also be used as a means of securing funding before the final agreement is concluded. The parties may specify certain conditions that must occur before the signing of a final agreement, such as: a declaration of intent is not an offer, it is a preliminary agreement between two parties, for example a buyer and seller of real estate. The letter aims to outline potential terms of sale so that each party can decide whether they wish to pursue the next step of signing a legally binding contract, such as. B a sales contract. A memorandum of understanding for the purchase of a business is not a legal contract, but a non-binding agreement to begin negotiations on the purchase of the business or property. The letter describes any preliminary agreements that have been entered into orally by you and the seller. Some authorizations and authorizations are not transferable in the context of purchases and sales. A lawyer can help determine which of the existing permits and authorizations are transferable and can help correct the transfer of authorizations and authorizations that are important to justify the purchase. Include any agreed terms, such as purchase price or price adjustments.
If the seller has accepted exclusivity (i.e. not to negotiate with other parties), this should also be included. If you and the seller have opted for a legally binding contract, you can create a real estate sales contract (REPA). This is a legally binding agreement and, as such, the owner cannot sell the property to others as soon as REPA is in force. IX.