Document background
The LOI for Property Purchase is a crucial preliminary document in Indian real estate transactions, commonly used before entering into a formal sale agreement. It serves as a structured way to initiate property transactions by documenting the buyer's serious intent while maintaining flexibility in negotiations. The document typically includes essential details such as property description, proposed purchase price, payment terms, timeline for completion, and due diligence requirements. While predominantly non-binding, certain clauses like confidentiality may be explicitly made binding. This document type is particularly relevant in complex property transactions where detailed negotiations and due diligence are necessary before proceeding to binding agreements. Under Indian law, the LOI helps establish clear communication between parties and often serves as a reference point for drafting the final sale deed.
