Document background
A Letter of Intent to Buy Land is commonly used in Saudi Arabia as the first formal step in a land acquisition process. It serves as a preliminary document that outlines the prospective buyer's serious intention to purchase a specific property, while maintaining flexibility before the final commitment. The document typically precedes the formal Sale and Purchase Agreement and is used to establish initial understanding between parties, secure exclusivity periods, and outline the framework for due diligence. While generally non-binding in nature, certain provisions such as confidentiality and exclusivity may be binding. The document must comply with Saudi Arabian real estate regulations and Sharia law principles, making it essential to include specific elements required by local jurisdiction. It's particularly useful in complex land transactions where detailed due diligence and negotiations are necessary before proceeding to a binding agreement.
