A Real Estate Letter of Intent is commonly used in Pakistan during the initial stages of property transactions to document the parties' preliminary understanding and intentions. This document is typically employed before entering into a final, binding agreement, when parties have reached a general understanding but need to formalize their initial commitments and establish a framework for further negotiations. It includes essential terms such as property details, proposed pricing, timeline for due diligence, and any exclusivity periods. While generally non-binding, certain provisions like confidentiality may be specifically made binding. The document must consider Pakistani property laws, including the Transfer of Property Act 1882 and Registration Act 1908, and may need to account for Shariah compliance depending on the transaction structure. It serves as a crucial tool for both commercial and residential property transactions, helping parties move towards a definitive agreement while protecting their interests during negotiations.

1. Date and Parties: Full legal names and addresses of both the potential buyer/tenant and seller/landlord

2. Property Description: Detailed description of the subject property including address, land area, built-up area, and any specific inclusions or exclusions

3. Transaction Overview: Brief description of the proposed transaction (purchase/lease) and its primary purpose

4. Commercial Terms: Proposed price/rent, payment terms, deposit requirements, and basic financial conditions

5. Timeline: Expected dates for due diligence, definitive agreement, and closing

6. Due Diligence: Scope of investigation rights and access to property/documents

7. Exclusivity Period: Duration during which the seller/landlord agrees not to negotiate with other parties

8. Confidentiality: Agreement to keep negotiations and information confidential

9. Non-Binding Nature: Clear statement that the LOI is non-binding except for specified provisions

10. Governing Law: Specification that Pakistani law governs the LOI