Document background
The Letter of Intent for Property Sale is a crucial preliminary document in Singapore's property transaction process, typically used before entering into a binding Sale and Purchase Agreement. It is employed when a prospective buyer wishes to formally express their interest in purchasing a property and outline the key commercial terms of the proposed transaction. The document, while generally non-binding, helps establish the framework for negotiations and can include binding provisions for certain aspects such as confidentiality and exclusivity periods. Under Singapore law, this document should be carefully drafted to reflect the intended non-binding nature while protecting both parties' interests during the negotiation phase. It typically includes details such as the proposed purchase price, payment terms, due diligence period, and any specific conditions precedent to the final sale. The LOI is particularly important in complex property transactions, commercial real estate deals, or when dealing with foreign buyers subject to additional regulatory requirements.
