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What is the letter of intent? The letter of intent states an understanding of the proposed terms of the impending sale between the two parties. It is not merely a preliminary document that defines the terms and conditions of a proposed sale but is also not a legally binding contract nor is it enforceable in a court of law. It does, however, specify the rights and obligations of the parties concerned. The parties are only stating that they intend to enter into an agreement, the contents of which are covenants that will later bind the parties together in their proposed business acquisition.

In the real estate world a letter of intention to buy is most often the first step a buyer takes when they have found the home that they wish to purchase. While it is a non_binding contract, once the letter has been received the seller will usually take the home off the market and stop considering other offers. For those who have never written one a letter of intent sample can be found at several websites on the Internet along with instructions covered how to fill it out effectively. You will find many different versions making it easy to find one that suits your specific needs.

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