Document background
A Letter of Intent to Transfer Ownership is commonly used in Nigerian business and property transactions as a preliminary step before executing a final transfer agreement. This document is particularly important in the Nigerian legal context, where property transfers must comply with both federal and state regulations, including the Land Use Act of 1978. The letter serves to document the parties' intentions, outline the basic terms of the proposed transfer, and establish a framework for the subsequent transfer process. It's typically used when parties have reached an initial understanding but need to document their intentions before proceeding with due diligence, formal valuations, or final transfer documentation. While not legally binding for the transfer itself, the Letter of Intent helps prevent misunderstandings and provides a clear roadmap for the transaction, making it an essential tool in Nigerian property transfers.
