Document background
The Real Estate Purchase Letter of Intent is a crucial preliminary document used in Indian real estate transactions to establish the initial framework for property purchase negotiations. It is typically employed when parties have reached a basic understanding but need to formalize their intentions before proceeding with detailed due diligence and final documentation. This document includes key transaction elements such as property identification, proposed purchase price, payment structure, due diligence requirements, and timeline, while clearly stating its generally non-binding nature. Under Indian law, while the Letter of Intent itself is usually non-binding, certain provisions like confidentiality and exclusivity can be made explicitly binding. The document serves as a roadmap for the transaction and helps prevent misunderstandings during the negotiation process, while allowing parties to proceed with confidence toward a final purchase agreement.
