Document background
A Letter of Intent to Purchase (Real Estate) is commonly used in New Zealand as the initial step in property acquisition negotiations, particularly for commercial properties or complex residential transactions. It serves as a formal expression of interest that precedes the binding sale and purchase agreement. This document is essential when buyers need to communicate their serious intent while reserving the right to conduct due diligence and negotiate final terms. It typically includes proposed purchase price, payment structure, due diligence requirements, and timeline for completing the transaction. The document must align with New Zealand property law requirements and can be particularly useful in scenarios involving multiple stakeholders, foreign investment considerations, or when detailed due diligence is required before proceeding with a binding agreement.
