The Letter of Interest to Purchase Property is a crucial initial document in German real estate transactions, serving as a formal expression of intent before proceeding to a binding purchase agreement. This document is typically used when a potential buyer has identified a property of interest and wishes to formally communicate their purchase intention to the owner. While not legally binding under German law, it helps establish the framework for negotiations and demonstrates serious intent. The letter typically includes property identification, proposed purchase price, basic terms, and proof of financial capability. It's particularly important in the German market where property transactions require careful preparation before proceeding to the mandatory notarized purchase agreement (Kaufvertrag). The document can be used for various property types, from residential to commercial, and helps streamline the pre-negotiation phase while protecting both parties' interests through clear communication of intentions and basic terms.

1. Date and Address Block: Current date and full address details of both the sender and recipient

2. Subject Line: Clear identification of the property and purpose of the letter

3. Salutation: Professional greeting to the property owner or their representative

4. Property Identification: Detailed description of the property including address, land register details, and any relevant property identifiers

5. Expression of Interest: Clear statement of interest in purchasing the property and brief introduction of the potential buyer

6. Proposed Terms: Initial proposed purchase price and any key terms of the potential transaction

7. Financial Capability: Brief statement about financial readiness and proof of funds

8. Timeline: Proposed timeline for the transaction and validity period of the letter

9. Next Steps: Proposed process for moving forward, including due diligence and formal negotiations

10. Closing: Professional closing, signature block, and contact information