A Letter of Intent to Sell House is commonly used in Canadian real estate transactions as an initial step before creating a formal purchase agreement. This document is typically employed when parties have reached a preliminary understanding about the sale of a residential property but need to document their intentions and basic terms before proceeding with detailed negotiations and due diligence. The letter outlines key aspects such as the property identification, proposed purchase price, payment terms, timeline, and any major conditions, while complying with relevant Canadian federal and provincial real estate regulations. While generally non-binding except for specific provisions like confidentiality, it serves as an important tool for establishing clear communication and demonstrating serious intent from both parties. The document is particularly useful in complex transactions or when parties want to ensure their basic understanding is aligned before investing time and resources in the full purchase process.
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1. Date and Address Block: Current date and proper addressing of the letter to the intended recipient
2. Property Identification: Complete legal description and street address of the property being sold
3. Purchase Price: Proposed purchase price and any specific terms related to the pricing
4. Payment Terms: Overview of how and when payment will be made, including any deposits
5. Key Dates: Proposed closing date and any other significant timeline milestones
6. Basic Terms: Fundamental terms of the proposed transaction, including any major conditions
7. Due Diligence Period: Timeframe and terms for buyer's investigation of the property
8. Closing Conditions: Essential conditions that must be met before the sale can be completed
9. Signature Block: Space for dated signatures of both parties to confirm their intent
1. Financing Contingency: Include when buyer's offer is contingent on obtaining specific financing
2. Property Inspection: Details about property inspection requirements when specific concerns exist
3. Existing Tenancy: Include when the property has current tenants and handling of lease agreements
4. Fixtures and Fittings: Specific list of items included/excluded when there are special considerations
5. Home Warranty: Include when seller is offering or buyer is requesting a home warranty
6. Special Conditions: Any unique circumstances or requirements specific to the property or transaction
1. Schedule A - Property Details: Detailed description of the property, including lot size, building specifications, and features
2. Schedule B - Included Items: Comprehensive list of fixtures, appliances, and other items included in the sale
3. Schedule C - Excluded Items: List of items specifically excluded from the sale
4. Schedule D - Known Issues: Disclosure of known property issues or defects
5. Appendix 1 - Property Photos: Recent photographs of the property's exterior and key interior spaces
6. Appendix 2 - Floor Plans: Basic floor plans or sketches of the property layout
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