Document background
A Letter Of Intent To Sell Property is a crucial preliminary document in Canadian real estate transactions, typically used before drafting a formal purchase and sale agreement. This document is particularly valuable when dealing with complex property transactions where parties need to establish basic terms before investing significant time and resources in due diligence and formal documentation. While primarily non-binding, except for specific clauses like confidentiality, it demonstrates serious intent and outlines key terms such as purchase price, payment structure, due diligence period, and closing conditions. The document is widely used across Canadian provinces, though specific requirements may vary by jurisdiction. It serves as a roadmap for the transaction and helps prevent misunderstandings by documenting preliminary agreements between parties. This type of document is especially common in commercial real estate transactions but can be valuable in any property sale where parties want to establish clear preliminary terms.
