Document background
The Property Purchase Letter of Intent is a crucial preliminary document used in Nigerian real estate transactions to initiate the formal property acquisition process. It serves as a stepping stone between initial interest and a binding purchase agreement, allowing parties to outline key terms while maintaining flexibility for negotiations. This document becomes particularly important in the Nigerian context due to the complex nature of land ownership under the Land Use Act and the need for various governmental approvals. The Letter of Intent typically includes proposed purchase price, payment terms, due diligence requirements, and transaction timeline, while also addressing specific local requirements such as governor's consent for land transfers. While not fully binding, it demonstrates serious intention to proceed with the transaction and often includes binding elements such as confidentiality and exclusivity provisions.
