Document background
A Letter of Intent to Buy Property is commonly used in New Zealand real estate transactions as an initial formal step before entering into a binding Sale and Purchase Agreement. This document is particularly useful when dealing with complex property transactions, commercial properties, or situations requiring extensive due diligence. It demonstrates serious intent while allowing both parties to maintain negotiating flexibility. The document typically includes proposed purchase price, key conditions, timelines, and due diligence requirements, all within the context of New Zealand property law. While not legally binding for the actual purchase, it can create certain obligations regarding confidentiality and exclusivity if specified. It's especially valuable in commercial property transactions or when dealing with overseas investors who need to comply with New Zealand's Overseas Investment Act.
