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Letter Of Interest (Real Estate) Template for Austria

A Letter of Interest (LOI) under Austrian law is a preliminary document used in real estate transactions to formally express a potential buyer's serious interest in acquiring a property. While generally non-binding except for specific provisions like confidentiality, it serves as a framework for future negotiations and outlines key terms such as the proposed purchase price range, timeline, and basic conditions. The document must comply with Austrian civil law principles, particularly the ABGB (Austrian Civil Code), and typically includes property identification details, proposed commercial terms, and the scope of any exclusivity period.

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What is a Letter Of Interest (Real Estate)?

The Letter of Interest (Real Estate) is a crucial preliminary document in Austrian property transactions, typically used when a potential buyer wishes to formally express their interest in acquiring a property while maintaining flexibility for negotiations. It serves as a stepping stone between initial discussions and a binding purchase agreement, allowing parties to outline key commercial terms and establish a framework for due diligence and negotiations. While not legally binding in its entirety, certain provisions (such as confidentiality and exclusivity) may create legal obligations under Austrian law. The document is particularly important in commercial real estate transactions where significant due diligence and complex negotiations are anticipated. It helps establish serious intent while protecting both parties' interests during the preliminary stages of a transaction.

What sections should be included in a Letter Of Interest (Real Estate)?

1. Date and Parties: Full identification of the potential buyer and property owner, including names, addresses, and any registration numbers for legal entities

2. Property Identification: Precise details of the property including address, land register details, and current ownership information

3. Expression of Interest: Clear statement of interest in purchasing the property and intention to enter into negotiations

4. Proposed Terms: Key commercial terms including proposed purchase price range and any specific conditions or assumptions

5. Timeline: Proposed timeline for due diligence, negotiations, and potential completion

6. Confidentiality: Statement regarding the confidential nature of discussions and any shared information

7. Non-Binding Nature: Clear statement that the letter is non-binding except for specific provisions (such as confidentiality)

8. Contact Details: Primary contact information for further communications and negotiations

What sections are optional to include in a Letter Of Interest (Real Estate)?

1. Exclusivity Period: Request for an exclusive negotiation period, if desired by the potential buyer

2. Financing: Information about the intended financing structure, if relevant to demonstrate capability to complete the transaction

3. Due Diligence Requirements: Specific information and documentation requirements for due diligence, if already known

4. Broker Information: Details of any involved real estate brokers and commission arrangements, if applicable

5. Special Conditions: Any specific conditions or requirements unique to the transaction or property

6. Current Lease Situation: Information about existing tenants and lease agreements, if relevant to the purchase decision

What schedules should be included in a Letter Of Interest (Real Estate)?

1. Property Details Schedule: Detailed description of the property including size, features, and current use

2. Initial Due Diligence Checklist: List of documents and information required for preliminary assessment

3. Site Plan: Basic plan or drawing of the property and its boundaries

4. Photographs: Recent photographs of the property, if available

5. Proof of Funds: Basic evidence of financial capability, such as bank reference letter (if agreed to be provided at this stage)

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Austria

Document Type

Letter of Intent

Cost

Free to use

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