Document background
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.
