Letter Of Intent To Purchase Residential Property Template for Singapore

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Letter Of Intent To Purchase Residential Property

"I need a Letter of Intent to Purchase Residential Property for a three-bedroom condominium in Singapore's District 10, with a purchase price of SGD 2.8 million and a planned completion date of March 2025, including specific conditions about property inspection and financing approval."

What is a Letter Of Intent To Purchase Residential Property?

The Letter of Intent to Purchase Residential Property is commonly used in Singapore's real estate market as an initial step in the property acquisition process. It serves as a formal declaration of the buyer's interest and helps establish the fundamental terms of the proposed transaction before proceeding with a full Sale and Purchase Agreement. The document typically includes property details, proposed purchase price, payment terms, due diligence period, and any specific conditions that must be met. Under Singapore law, while most provisions are non-binding, certain clauses such as confidentiality and exclusivity may be explicitly made binding. The LOI helps protect both parties' interests during the preliminary stages of the transaction.

What sections should be included in a Letter Of Intent To Purchase Residential Property?

1. Property Details: Complete description of the subject property including address, lot number, and property type

2. Purchase Price: Statement of the proposed purchase price and initial payment terms

3. Expression of Intent: Clear statement of intention to purchase the property subject to conditions

4. Deposit Details: Amount of earnest deposit, payment timeline, and handling conditions

5. Due Diligence Period: Specified timeframe for conducting property investigations and title searches

6. Timeline: Proposed timeline for key milestones including option issuance and completion

What sections are optional to include in a Letter Of Intent To Purchase Residential Property?

1. Financing Conditions: Include when purchase is subject to obtaining mortgage financing approval

2. Foreign Ownership Approval: Include when buyer is a foreign person requiring Land Dealings Unit approval

3. HDB Eligibility: Include for HDB properties to confirm buyer meets eligibility criteria

4. Property Inspection: Include when specific property inspection rights are requested

5. Exclusivity Period: Include when requesting exclusive negotiating rights for a specified period

What schedules should be included in a Letter Of Intent To Purchase Residential Property?

1. Property Details Schedule: Detailed property information including floor plan and specifications

2. Proof of Funds: Evidence of buyer's financial capability to complete the purchase

3. Preliminary Title Search: Results of initial title search if already conducted

4. Buyer's Identification: Copies of identification documents and relevant status proof

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Residential Property Act: Chapter 274 of Singapore laws governing residential property ownership, particularly important for restrictions on foreign ownership

Housing and Development Act: Legislation governing HDB properties, including ownership, transfer, and usage restrictions

Sale of Commercial Properties Act: Regulates property transactions, including requirements for sale and purchase agreements

Conveyancing and Law of Property Act: Governs the transfer of property ownership and related legal processes

Stamp Duties Act: Regulates stamp duties including Buyer's Stamp Duty (BSD) and Additional Buyer's Stamp Duty (ABSD)

ABSD Rules: Additional Buyer's Stamp Duty requirements based on buyer profile and property count

TDSR Framework: Total Debt Servicing Ratio framework set by MAS limiting maximum loan amounts based on income

LTV Limits: Loan-to-Value limits set by Monetary Authority of Singapore restricting maximum mortgage amounts

HDB Regulations: Specific rules for HDB properties including eligibility conditions and ownership restrictions

Ethnic Integration Policy: Policy maintaining ethnic proportions in HDB estates to promote racial harmony

SPR Quota: Singapore Permanent Resident quota restrictions for HDB property ownership

Foreign Ownership Restrictions: Limitations on foreign ownership of residential properties in Singapore

Land Dealings Unit Approval: Required approvals for foreign buyers purchasing restricted residential properties

Contract Act: Chapter 53 of Singapore laws governing contract formation and enforcement

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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