Document background
A Letter of Intent (Real Estate) is a crucial preliminary document used in Dutch property transactions to establish the initial framework for negotiations between parties interested in a real estate deal. This document type is particularly important in the Netherlands, where real estate transactions typically follow a structured approach with careful attention to pre-contractual obligations. It outlines key commercial terms, conditions, and timelines while usually maintaining a partially binding nature under Dutch law. The LOI typically includes essential elements such as property description, proposed purchase price, exclusivity periods, and due diligence requirements. While not all provisions are legally binding, certain aspects such as confidentiality and exclusivity clauses often create enforceable obligations. This document serves as a vital step between initial discussions and the final purchase agreement, providing a clear roadmap for the transaction while allowing parties to proceed with detailed due diligence and further negotiations.
