What is a Letter of Intent to Purchase Property?

A Letter of Intent to Purchase Property is a document a prospective buyer gives a seller to set out the main terms on which they propose to buy land or a building — the price, deposit, and timeline — before the formal sale agreement and Deed of Assignment are prepared. It signals genuine intent and frames the negotiation.

Why use one in a property deal

Property transactions are high value and slow. An LOI locks in the headline terms early, reduces misunderstandings, and can secure a short exclusivity period while due diligence is done.

What it should contain

  • The buyer, seller and the property.
  • Proposed price and deposit.
  • Timeline to completion and conditions (e.g. title verification).
  • Which terms are binding (such as confidentiality/exclusivity).

Create your Property LOI

Answer a few questions and download your letter. Related: Deed of Assignment, Tenancy Agreement.

FAQ

Does the LOI commit me to buy?

Generally no — the binding sale obligation comes with the formal contract, unless the LOI expressly says otherwise.