What is the purpose of a letter of intent?
In today’s world, it is important to have everything in writing in order to avoid any dispute. When it comes to big and expensive deals like real estate, your every step should be well documented. There are people who will not miss any opportunity to exploit even the smallest of your mistakes. It is not the time to trust people easily. Thus, getting everything down on paper is very beneficial. It is also good for your own record keeping. All these requirements can be fulfilled with a letter of intent. It is a document that contains info regarding a deal that is currently in the making. It is not a contract, but an initial draft of what the buyer and the seller have agreed upon. You should use a letter of intent if you want to get the deal in writing without actually finalizing it. This document can also be used as a proof to show lenders that you are about to buy a property.
Though this letter is not a legal document, it should still be created very carefully. If you do not have the right knowledge to craft such a document, you should try to find a letter of intent sample on the internet. This sample will give you a general idea of all the terms that you should include in your document. You can even ask your realtor for a sample. If the deal described in the letter of intent sample is similar to yours, you can use it just by changing the specifications.