Document background
The Letter of Intent to Sell a Property is commonly used in Australian real estate transactions when parties wish to formalize their preliminary negotiations before proceeding to a binding contract. This document is particularly valuable in complex property transactions, such as commercial real estate deals or high-value residential properties, where parties need to establish clear parameters before committing to extensive due diligence or detailed contract negotiations. While not legally binding for the actual sale, it demonstrates serious intent and typically includes key information such as property details, proposed price, timeline, and any special conditions. The letter serves as a roadmap for the subsequent formal Contract of Sale and helps prevent misunderstandings during the negotiation phase. In the Australian legal context, it provides a structured way to progress property negotiations while maintaining flexibility for both parties.
