Letter of Intent for Property Purchase USA Template 2026
On this page you will find a letter of intent (LOI) template for property purchase in the USA ready for direct editing and download in Word and PDF format for free, with a full guide: when to use it, key clauses to include, and mistakes to avoid.
| Country | 🇺🇸 United States |
|---|---|
| Document Type | Real Estate |
| Format | Word, PDF & direct fill |
| Cost | Free |
| Fill Time | About 15 minutes |
| Notarization | Required |
What Is This Template and When to Use It?
A Letter of Intent (LOI) for property purchase is a non-binding document that outlines the key terms and conditions proposed by a buyer before a formal purchase agreement is drafted. It signals serious interest and serves as a framework for negotiations between buyer and seller. LOIs are commonly used in commercial real estate transactions but can also be used for residential purchases. While typically non-binding, certain clauses (confidentiality, exclusivity) may be binding.
Where to Submit
Send this letter directly to the seller, the seller's real estate agent, or the seller's attorney. It can be sent by email or certified mail. Once both parties agree on the terms outlined in the LOI, a formal purchase agreement (contract of sale) will be drafted by an attorney.
Does It Require Notarization?
Required. LOIs are generally not notarized since they are non-binding. However, both parties should sign and date the document. The binding purchase agreement that follows will require notarization and formal execution.
Documents You Need
- Property address and legal description
- Buyer's pre-approval or proof of funds letter
- Proposed purchase price and deposit amount
- Desired closing date and contingencies
- Seller's contact information or agent details
- Title search results (if available)
- Property inspection or appraisal reports (if available)
How to Use This Template
- Click any yellow field inside the template and type your information (press Enter to move to the next field).
- Review the text; you can edit any sentence by clicking the "Edit" button.
- Click "Word" or "PDF" or "Copy", then sign the letter.
Ready-to-Fill Template: Letter of Intent – Property Purchase
LETTER OF INTENT – PROPERTY PURCHASE
Date
From (Buyer):
Buyer's Full Name or Entity Name
Buyer's Address
City, State, ZIP Code
Phone Number | Email Address
To (Seller):
Seller's Full Name or Entity Name
Seller's Address
City, State, ZIP Code
RE: Letter of Intent to Purchase – Property Address
Dear Seller's Name,
I am writing to express my intent to purchase the property located at Full Property Address, City, State, ZIP Code (the "Property"). This Letter of Intent outlines the proposed terms and conditions for the transaction.
1. Purchase Price: The proposed purchase price is $Offered Purchase Price.
2. Earnest Money Deposit: Upon execution of a formal purchase agreement, the Buyer will deposit $Deposit Amount as earnest money into an escrow account.
3. Due Diligence Period: The Buyer shall have 30 / 45 / 60 days from the execution of the purchase agreement to conduct inspections, appraisals, environmental assessments, and review of title and survey documents.
4. Financing: This offer is contingent upon the Buyer obtaining financing in the amount of $[Amount] at commercially reasonable terms within [Number] days of contract execution. / This is an all-cash offer with no financing contingency.
5. Closing Date: The proposed closing date is Date or within Number days of contract execution, whichever is later.
6. Contingencies: This transaction is subject to the following contingencies: satisfactory property inspection, clear title, environmental clearance, financing approval, appraisal at or above purchase price.
7. Closing Costs: Each party shall bear its own closing costs unless otherwise agreed in the purchase agreement. The Seller agrees to pay for [specific items, e.g., title insurance, transfer taxes].
8. Exclusivity: The Seller agrees to negotiate exclusively with the Buyer for a period of 14 / 30 days from the date of this LOI.
9. Non-Binding: This Letter of Intent is non-binding except for the provisions regarding confidentiality and exclusivity. A binding obligation will arise only upon execution of a definitive purchase agreement.
I look forward to discussing these terms and moving forward with this transaction. Please indicate your acceptance of these proposed terms by signing below and returning a copy.
Sincerely,
Buyer's Signature Date: Date
Buyer's Full Name (printed)
ACCEPTED AND AGREED:
Seller's Signature Date: Date
Seller's Full Name (printed)
⚠️ Disclaimer: This template is for informational purposes only and does not constitute legal advice. Always verify the requirements with the relevant authority before submitting.
Sources & References
- National Association of Realtors – LOI Best Practices
- Legal Information Institute – Letters of Intent (law.cornell.edu)
- Investopedia – Letter of Intent in Real Estate
Always check the latest requirements before submitting.
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Common Mistakes to Avoid
- ❌ Not clearly stating that the LOI is non-binding (except exclusivity/confidentiality).
- ❌ Leaving out key terms like closing date, contingencies, or financing details.
- ❌ Not including a due diligence period — you need time for inspections and title review.
- ❌ Offering a price without researching comparable sales in the area.
- ❌ Forgetting to include an exclusivity clause, allowing the seller to entertain other offers.
Important Tips Before Submitting
- • Research comparable sales (comps) in the area to justify your offered price.
- • Include a realistic due diligence period — commercial properties typically need 45-60 days.
- • Have your financing pre-approved before submitting the LOI to strengthen your offer.
- • Work with a real estate attorney to draft the formal purchase agreement after LOI acceptance.
- • Include both binding (exclusivity, confidentiality) and non-binding terms clearly.
Frequently Asked Questions
Is a Letter of Intent legally binding?
Generally, an LOI is non-binding — it is a framework for negotiations. However, specific clauses such as exclusivity, confidentiality, and good-faith negotiation provisions may be binding. The binding purchase agreement comes after the LOI is accepted.
What is the difference between an LOI and a purchase agreement?
An LOI outlines proposed terms and is typically non-binding. A purchase agreement (contract of sale) is the binding legal document that commits both parties to the transaction with specific terms, conditions, and remedies for breach.
Can I back out after signing an LOI?
Yes, since the LOI is generally non-binding. However, you may forfeit any earnest money deposited, and if the exclusivity clause is binding, you could face claims for breach. Always consult an attorney before walking away.