Document background
The Letter of Intent (Real Estate) is a crucial preliminary document in Indian real estate transactions, typically used before entering into a formal sale deed, lease agreement, or other property-related contracts. It serves as a roadmap for the proposed transaction, outlining key commercial terms, conditions, and timelines while allowing parties to proceed with due diligence and detailed negotiations. While generally non-binding in nature, it can include certain binding provisions such as confidentiality or exclusivity clauses. The document is particularly important in complex real estate transactions where parties need to demonstrate serious intent while maintaining flexibility before final commitments. Under Indian law, while not mandatory, an LOI helps establish clear communication and understanding between parties, reducing the risk of misunderstandings in later stages of the transaction.
