Document background
The Letter of Intent (LOI) for Real Estate transactions is a crucial preliminary document in Hong Kong's property market. It serves as a stepping stone between initial discussions and the final binding agreement, setting out the key commercial terms and conditions that parties intend to include in their final contract. While a Real Estate LOI is generally non-binding, it often contains certain binding provisions such as confidentiality, exclusivity, and governing law clauses. The document is commonly used in both commercial and residential property transactions, reflecting Hong Kong's unique property laws and market practices. It typically precedes more detailed agreements and helps parties establish clear expectations while allowing for due diligence and further negotiations. The LOI should comply with Hong Kong's property regulations, including considerations for stamp duty and registration requirements where applicable.
