A Letter of Intent to Sell House is commonly used in Australian property transactions as an initial step before entering into a formal contract of sale. It is typically prepared when a potential buyer wishes to formally express their serious interest in purchasing a property and document the preliminary terms of the proposed transaction. The document serves multiple purposes: it demonstrates the buyer's genuine intention, outlines the key terms and conditions of the proposed purchase, and provides a framework for further negotiations. While not legally binding for the final sale, it helps prevent misunderstandings and provides a clear reference point for the preparation of the formal contract. The letter typically includes property details, proposed purchase price, timeline, due diligence requirements, and any specific conditions, all within the context of Australian property law and local real estate practices.
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1. Letter Date and Address Block: Current date and formal address block identifying the recipient
2. Subject Line: Clear identification of the property and purpose of the letter
3. Opening Statement: Formal introduction and declaration of intent to purchase the specified property
4. Property Details: Full legal description and address of the property being considered for purchase
5. Purchase Price: Proposed purchase price and any initial thoughts on payment structure
6. Timeline: Proposed timeline for the transaction, including expected dates for formal contract and settlement
7. Due Diligence: Statement regarding the buyer's intention to conduct necessary inspections and reviews
8. Basic Terms: Key terms and conditions that would be included in the final contract
9. Non-Binding Nature: Clear statement that this is not a binding contract but an expression of serious intent
10. Next Steps: Outline of the immediate next steps in the process
11. Closing and Signatures: Formal closing, space for signatures of both parties
1. Contingencies: Include when there are specific conditions that need to be met, such as financing approval or sale of current property
2. Property Improvements: Include when discussing specific improvements or repairs expected before purchase
3. Deposit Terms: Include when proposing specific terms for initial deposit
4. Special Conditions: Include when there are unique circumstances or requirements for the transaction
5. Exclusions/Inclusions: Include when specific items need to be clarified as included or excluded from the sale
6. Intermediaries: Include when real estate agents or other professional representatives are involved
1. Property Description Schedule: Detailed description of the property including lot number, title details, and boundaries
2. Price Breakdown: Itemized breakdown of the proposed purchase price, including any adjustments or allowances
3. Proposed Timeline: Detailed timeline of key dates and milestones for the transaction
4. Property Inspection Report: If already completed, summary of any property inspections or condition reports
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