Letter Of Intent To Purchase Residential Property Template for Philippines

A Letter Of Intent To Purchase Residential Property is a crucial preliminary step in Philippine real estate transactions, typically used before entering into a formal Contract to Sell or Deed of Absolute Sale. This document serves as a formal expression of interest from a prospective buyer to a property owner, outlining the basic terms and conditions under which they propose to purchase the property. While non-binding in nature, it demonstrates serious intent and forms the basis for further negotiations. The document must be drafted in consideration of Philippine property laws, including the Civil Code, the Maceda Law, and constitutional restrictions on foreign ownership. It's particularly useful in complex residential property transactions where parties need to establish clear communication and understanding before proceeding with formal legal documentation and due diligence processes.

1. Letter Header and Date: Formal business letter header including sender's address, recipient's address, and date

2. Subject Line: Clear identification of the document as a Letter of Intent to Purchase Residential Property

3. Opening Paragraph: Introduction of the potential buyer and clear statement of intent to purchase the specific property

4. Property Details: Complete description and address of the subject property, including lot number, street address, and property identifiers

5. Purchase Price: Proposed purchase price and any initial price negotiations

6. Payment Terms: Proposed payment structure, including down payment and financing arrangements

7. Timeline: Proposed timeline for the transaction, including due diligence period and target closing date

8. Due Diligence: Statement of intent to conduct property inspection and title search

9. Closing Statement: Statement that this is non-binding and subject to formal contract

10. Signature Block: Space for signatures of both parties, including names and dates