What is letter of intent template
Letter of intent template is a legal document. When there is a dealing of land involved between two parties and the property is not listed on different services the party intending to purchase the property, needs to give the reason for purchase. This means a letter indicating their intentions as to what is to be done with the property after the purchase of the same. This gives an idea of the type of use the property will be subjected to after it goes into the hands of the new owner.
How is letter of intent relevant in real estate business
The relevance of letter of intent is mainly due to the fact that the party who is selling their property should know what kind of use it is being purchased for. For example the owner of a piece of land would want to know the use for which he sells his land or for that matter the banks who give loan to the buyers may want to know what kind of business is to be done with the property that the party is taking loan for. With this information the banks get an idea of few points such as:
- The capability of the loan takers to return the loan in the stipulated time period. If the loan is for non productive purposes it is nearly impossible to return the multimillion loans. Whereas loan for productive businesses can be returned in no time.
- The security of the nation could be at stake by selling property to the people of scrupulous intentions. Letter of intention template gives an idea of the use the property will be subjected to after being sold.