Document background
A Real Estate Purchase Letter of Intent is commonly used in the Philippines as the initial formal step in property acquisition transactions. It serves as a preliminary document that communicates a serious interest in purchasing property while maintaining flexibility for both parties during negotiations. The document is particularly useful in complex real estate transactions where detailed due diligence is required before proceeding to a binding agreement. While governed by Philippine law, including the Civil Code and various real estate regulations, the LOI typically remains non-binding except for specific provisions such as confidentiality or exclusivity. It should include essential elements like property details, proposed purchase price, payment terms, due diligence requirements, and any special conditions, while clearly stating its non-binding nature to avoid unintended legal obligations.
