SAMPLE LETTER OF INTENT TO PURCHASE FLORIDA REAL ESTATE
March 25, 20___
VIA FACSIMILE (954) 245-XXXX
Mr. Daniel D
M & M
2300 N. Andrews Avenue
Fort Lauderdale, FL 33309
Re: S. Mona Apartments 18 units
3 Jackson Street
Hollywood Beach, Florida
Please forward this correspondence to the Seller as our Letter of Intent to purchase the property referenced above upon the following terms and conditions:
Purchase Price: The purchase price of the property shall be Five Hundred Forty Thousand and NO/100Dollars ($540,000.00).
First Mortgage: None - all cash at closing.
Deposit: Upon execution of a Contract, Buyer shall deliver a deposit of Twenty-five Thousand and NO/Dollars ($25,000.00), (the “Deposit”) to the Buyer’s attorney’s Trust Account (the “Escrow Agent”).
Inspection Period: Upon the effective date of the Contract, the Buyer shall have fourteen (14) calendar days to review all Books & Records and inspect the property (the “Inspection Period”), during which Seller shall provide Buyer with complete access to the Property and its records.
Expiration of Inspection Period: Upon the expiration of the Inspection Period, the Buyer shall increase the Deposit to a total of Fifty Thousand and NO/Dollars ($50,000.00), and the Buyer’s entire deposit shall become NON-REFUNDABLE, subject only to the Seller delivering “clear and marketable” title and other provisions which set forth the Seller’s obligations to close.
The Contract: Within five (5) business days after the acceptance of this Letter of Intent by the Seller, the Buyer shall deliver to Seller a contract for sale (the “Contract”), the terms of which shall be in substantial conformity with this Letter of Intent.
Termination: If, for any reason whatsoever, in the Buyer’s sole and absolute discretion, at any time prior to the expiration of the Inspection Period, Buyer elects not to proceed with the transaction, Buyer shall have the right to terminate the Contract, whereupon the Deposit together with any interest earned thereon shall be returned to the Buyer, and the Contract shall be null and void, and the parties shall have no further obligation or recourse against each other.
Closing: This transaction will close (the “Closing”) on a date mutually agreeable to the parties within fifteen (15) calendar days from the expiration of the Inspection Period.
Closing Costs: The costs of closing shall be customary to the county in which the Property is located.
Title: Seller shall, at its sole cost and expense, be responsible for the delivery of a prior owner’s title policy or abstract of title which is in accordance the State of Florida, subject only to those exceptions approved by Buyer, and the cost of the title policy shall be paid by Buyer.
Survey: Buyer shall be responsible for the delivery of an “as built” survey and “as built” plans. The cost of any new survey shall be paid by Buyer, which is customary to the county in which the Property is located.
Assignment: Buyer, in its sole and absolute discretion, shall have the right to assign all of its rights under the Contract to an entity owned or controlled by the Buyer.
Brokerage Commission: Seller shall pay all brokerage commissions at closing and agrees to indemnify Buyer for any claims related thereto, if any. The only brokers involved in this transaction are M & M.
Please note, this letter constitutes only an expression of interest and shall not constitute a binding agreement between the any party to consummate the transaction discussed herein. This letter is non-binding and is merely a reflection of the parties understanding of some of the general terms of the proposed purchase transaction and upon which understanding the parties are willing to proceed with further discussion and negotiations. It is agreed that no party to the proposed transaction will be under any legal obligation with respect to the proposed transaction or any similar transaction, and no offer, commitment, estoppel, undertaking or obligation or any nature whatsoever shall exist or be implied in fact, law or equity unless and until a formal written agreement providing for the transaction containing in detailed legal form the terms and conditions of the transaction has been executed and delivered by all parties intended to be bound.
Further, during the course of negotiations the parties may reach an agreement on certain points related to the proposed transaction, but agree that no party shall be entitled to rely on any such agreements, or any statements to representations that may be made during the course of discussion and negotiations, nor shall there be any legal obligations related thereto, until the parties have executed a formal contract.
President of LCE Development Inc.
Accepted and agreed this day of , 20___.
This document is a sample letter of intent related to a specific set of facts and circumstances and should not be used for any real estate matter. This form is being provided for illustrative purposes only and should not be relied upon as legal advice. We recommend and urge you to consult with an experienced real estate lawyer for professional advice as each case is unique. All Rights Reserved.
Representations, Warranties and Disclaimer.
UNLESS OTHERWISE MUTUALLY AGREED TO BY THE PARTIES IN WRITING, WE OFFER THIS DOCUMENT AS-IS AND WE MAKE NO REPRESENTATIONS OR WARRANTIES OF ANY KIND CONCERNING THE FORM, EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF TITLE, MERCHANTIBILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT, OR THE ABSENCE OF LATENT OR OTHER DEFECTS, ACCURACY, OR THE PRESENCE OF ABSENCE OF ERRORS, WHETHER OR NOT DISCOVERABLE. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO SUCH EXCLUSION MAY NOT APPLY TO YOU.
Limitation on Liability.
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