A Letter of Intent to Buy Property is commonly used in Belgian real estate transactions as a preliminary step before entering into a binding purchase agreement. It is particularly useful when parties wish to formalize their initial understanding while maintaining flexibility for negotiations. The document typically precedes the more detailed "compromise de vente/verkoopcompromis" (preliminary sale agreement) and the final notarial deed. While primarily non-binding, it can include certain binding provisions such as confidentiality and exclusivity obligations. The document helps structure negotiations by addressing key points like purchase price, due diligence requirements, and transaction timeline, while complying with Belgian civil law and regional property regulations. It serves as a roadmap for the transaction and demonstrates serious intent while protecting both parties' interests during the negotiation phase.
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1. Date and Parties: Full identification of both the potential buyer and the property owner, including legal names, addresses, and any relevant registration numbers
2. Property Description: Detailed description of the property, including exact address, cadastral references, and size
3. Purchase Price: Proposed purchase price and any conditions related to the price
4. Due Diligence Period: Timeframe for conducting property investigations and due diligence
5. Key Transaction Terms: Main conditions for the potential purchase, including expected timeline
6. Exclusivity Period: Period during which the seller agrees not to negotiate with other potential buyers
7. Confidentiality: Obligations regarding confidential information shared during negotiations
8. Non-Binding Nature: Clear statement about the non-binding nature of the letter, except for specific provisions
9. Governing Law: Confirmation that Belgian law governs the letter
10. Signature Block: Space for dated signatures of both parties
1. Deposit Terms: Include when parties agree on a preliminary deposit or guarantee
2. Broker Involvement: Include when real estate agents are involved in the transaction
3. Financing Conditions: Include when the purchase is subject to obtaining specific financing
4. Special Conditions: Include when there are specific requirements like obtaining permits or resolving existing tenancies
5. Break Fee: Include when parties agree on compensation if negotiations are terminated under specific circumstances
6. Transaction Structure: Include when the transaction involves special corporate or tax structures
1. Property Details Schedule: Detailed description of the property, including plans, boundaries, and included fixtures
2. Due Diligence Requirements: List of required documents and investigations to be conducted
3. Timeline Schedule: Proposed timeline for key steps in the transaction
4. Existing Encumbrances: List of known mortgages, easements, or other encumbrances on the property
5. Environmental Reports: Summary of any existing environmental studies or soil certificates
6. Property Photos: Recent photographs of the property and key features
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