Land Purchase Agreement: A Comprehensive Guide

Writing a letter of intent is a way for two or more parties involved in a land transaction to work out details of the final buy and sell agreement, which also is commonly known as a purchase agreement. A letter of intent is considered to be a nonbinding agreement, meaning either side can cancel or back out at the last minute without facing any penalties. You should begin writing a letter of intent by first agreeing with the buyer and seller on what to include in the contract. A letter of intent should contain all of the points each party wants addressed before closing the deal.

Writing a letter of intent

Step 1

Write an introduction that includes the date, the name of each party involved in the land purchase agreement, a description of the property and its location.

Step 2

Write a second paragraph stating the purchase price of the land. Make sure to include any pertinent dates, such as payment frequency or property inspections, as well as the transaction's closing date.

Step 3

Write out the details of who will pay the closing costs in the third section, and the fee that is owed to the broker.

Step 4

Wrap up your letter of intent by stating that this is a nonbinding agreement, and that either party can walk away at the last minute for any reason.

Step 5

Print out two copies of the letter, and have each party sign both copies.

Tip

It's always a good idea to get an official document notarized, too, but it is not required.

Make sure to include any special details of the purchase agreement in your letter of intent.

Things You'll Need

• Computer

• Word processing program

• Paper

• Printer