Document background
The Real Estate Purchase Letter of Intent serves as an essential preliminary step in Canadian real estate transactions, particularly in commercial and significant residential purchases. This document is utilized when parties have reached initial agreement on key terms but before committing to a formal purchase agreement. It outlines fundamental aspects such as price, payment terms, due diligence periods, and conditions precedent, while typically maintaining a non-binding nature except for specific provisions like confidentiality and exclusivity. The Letter of Intent helps parties establish clear expectations and demonstrates serious interest while providing flexibility for detailed negotiations. In the Canadian context, it must align with provincial property laws and real estate regulations, often serving as a blueprint for lawyers to draft the final purchase agreement.
