A Letter Of Intent For Selling Property is a crucial preliminary step in Canadian property transactions, typically used before proceeding to a formal Purchase and Sale Agreement. This document is essential when parties want to document their serious intention to enter into a property transaction while still maintaining flexibility for negotiation and due diligence. It outlines key commercial terms such as purchase price, payment structure, timelines, and conditions precedent, while typically remaining non-binding except for specific provisions. Used across all Canadian provinces and territories, with specific considerations for provincial property laws, this document helps parties align their expectations and provides a framework for moving forward with the transaction. It's particularly valuable in complex commercial property transactions or when significant due diligence is required before finalizing the sale.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Your data doesn't train Genie's AI
You keep IP ownership of your docs
Alternatively...
1. Date and Address Block: Standard letter heading with current date and recipient's address
2. Subject Line: Clear identification that this is a Letter of Intent for the specific property
3. Opening Paragraph: Introduction of the parties and statement of intent to purchase/sell the specified property
4. Property Description: Detailed description of the property including address, legal description, and any included fixtures or chattels
5. Purchase Price: Proposed purchase price and any price adjustment mechanisms
6. Payment Terms: Structure of payment including deposits, financing conditions, and payment schedule
7. Key Dates: Proposed closing date, due diligence period, and other critical timelines
8. Due Diligence: Overview of the inspection and investigation rights of the buyer
9. Conditions Precedent: Essential conditions that must be met before proceeding to a formal agreement
10. Non-Binding Nature: Clear statement that the LOI is non-binding except for specified provisions
11. Exclusivity Period: Period during which the seller agrees not to negotiate with other parties
12. Closing Paragraph: Request for confirmation and deadline for response
13. Signature Blocks: Space for both parties to sign and date the letter
1. Confidentiality: Terms regarding the confidential treatment of information exchanged - include when sensitive information will be shared
2. Break Fee: Compensation if either party withdraws - include in high-value transactions or competitive situations
3. Property Management: Interim management arrangements - include when there are ongoing operations or tenancies
4. Environmental Matters: Special provisions for environmental investigations - include for industrial or potentially contaminated properties
5. Assignment Rights: Rights to assign the LOI - include when buyer may want to assign to a related entity
6. Broker Representation: Declaration of any real estate brokers involved - include when brokers are part of the transaction
1. Property Description Schedule: Detailed legal description and property boundaries
2. Included Assets Schedule: List of fixtures, equipment, or other assets included in the sale
3. Due Diligence Checklist: List of documents and information to be provided during due diligence
4. Preliminary Site Plan: Basic site plan or property layout if relevant to the transaction
Authors
Find the document you need
No items found.
Genie’s Security Promise
Genie is the safest place to draft. Here’s how we prioritise your privacy and security.
Your data is private:
We do not train on your data; Genie’s AI improves independently
All data stored on Genie is private to your organisation
Your documents are protected:
Your documents are protected by ultra-secure 256-bit encryption
We are ISO27001 certified, so your data is secure
Organizational security:
You retain IP ownership of your documents and their information
You have full control over your data and who gets to see it
