The Letter of Intent to Purchase (Real Estate) is a crucial preliminary document in Philippine property transactions that bridges initial discussions and formal purchase agreements. It is typically used when a potential buyer has identified a property of interest and wishes to formalize their intention to purchase while reserving the right to conduct due diligence. The document outlines key terms such as the proposed purchase price, payment structure, timeline, and any special conditions, while considering Philippine-specific requirements including foreign ownership restrictions, local government regulations, and tax implications. While most provisions are non-binding, certain elements like confidentiality or exclusivity periods may be explicitly binding. This document is particularly important in the Philippine context where property transactions often involve multiple stakeholders and require careful navigation of local legal requirements.
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1. Header and Date: Formal letter heading including date and addresses of both parties
2. Subject Line: Clear indication that this is a Letter of Intent to Purchase specific real estate
3. Opening Paragraph: Introduction of the parties and statement of intent to purchase the property
4. Property Details: Specific description and identification of the property including address, title details, and tax declaration number
5. Purchase Price: Proposed purchase price and any initial price negotiations
6. Payment Terms: Proposed payment structure including deposits, down payments, and balance payment schedule
7. Due Diligence Period: Proposed timeframe and scope for conducting due diligence investigations
8. Timeline: Proposed timeline for key transaction milestones including due diligence, contract signing, and closing
9. Conditions Precedent: Key conditions that must be met before proceeding with the transaction
10. Non-Binding Nature: Clear statement that the LOI is non-binding except for specified provisions
11. Closing: Signature blocks and formal closing of the letter
1. Exclusivity Period: Used when buyer wants exclusive negotiating rights for a specified period
2. Confidentiality: Include when sensitive information will be shared during due diligence
3. Broker Information: Include if real estate brokers are involved in the transaction
4. Property Access: Include when specific arrangements for property inspection are needed
5. Deal Structure: Include for complex transactions involving special arrangements or corporate vehicles
6. Expiration Date: Include when the offer has a specific validity period
7. Local Requirements: Include any specific requirements for foreign buyers if applicable
1. Property Description Schedule: Detailed technical description of the property including lot area, boundaries, and improvements
2. Initial Due Diligence Checklist: List of documents and information required for preliminary due diligence
3. Proposed Payment Schedule: Detailed breakdown of payment terms and schedule if complex payment structure is proposed
4. Property Photos: Recent photographs of the property and its immediate vicinity
5. Title Information: Copy of the latest title and tax declaration documents
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