A Letter of Intent to Buy Land is commonly used in Hong Kong's real estate market as an initial step in the land acquisition process. This document is typically prepared when a serious buyer wishes to formally express their interest in purchasing a specific plot of land and establish the preliminary framework for negotiations. It outlines key terms such as the proposed purchase price, payment structure, due diligence period, and any conditions precedent to the transaction. While generally non-binding except for specific provisions (such as confidentiality and exclusivity), it serves as an important precursor to the formal Sale and Purchase Agreement. The document must be drafted with consideration of Hong Kong's unique land tenure system, where all land is leasehold, and must align with local property laws, stamp duty regulations, and conveyancing requirements.
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1. Sender and Recipient Details: Full names and addresses of both the potential buyer and the property owner
2. Property Identification: Clear and precise description of the subject property including lot number, address, and registered details
3. Expression of Interest: Clear statement of intention to purchase the identified property
4. Proposed Purchase Price: Statement of the offered purchase price and payment terms
5. Key Commercial Terms: Overview of fundamental terms including proposed completion timeline and any key conditions
6. Due Diligence Period: Proposed timeframe and scope for conducting due diligence investigations
7. Exclusivity Period: Requested period during which the seller will not negotiate with other potential buyers
8. Confidentiality Statement: Declaration regarding the confidential nature of the negotiations and information exchanged
9. Binding/Non-Binding Nature: Clear statement about which provisions are intended to be legally binding
1. Deposit Terms: Include when an initial deposit is proposed as part of the transaction
2. Broker/Agent Declaration: Include when the transaction involves real estate agents or brokers
3. Development Intentions: Include when the buyer has specific development plans for the land that may affect the transaction
4. Existing Tenancies: Include when the land has existing tenants and arrangements need to be addressed
5. Conditions Precedent: Include when the purchase is subject to specific conditions such as board approval or financing
6. Government Approvals: Include when the intended use requires specific government or regulatory approvals
1. Property Details Schedule: Detailed description of the property including boundaries, easements, and encumbrances
2. Initial Due Diligence Checklist: List of required documents and information for preliminary due diligence
3. Proposed Timeline: Schedule of key dates and deadlines for the transaction process
4. Current Land Use Documents: Copies of existing land use certificates, zoning information, or development permissions
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