Document background
A Letter of Intent for Buying Property is a crucial preliminary document in Philippine real estate transactions, typically used before entering into a formal contract of sale. It serves as the initial step in property acquisition, demonstrating serious interest while allowing both parties to outline key terms before committing to a binding agreement. This document is particularly important in the Philippine context, where property transactions often involve multiple stakeholders and require compliance with specific local regulations, including foreign ownership restrictions and local government requirements. The LOI helps establish clear communication between parties and typically includes proposed purchase price, payment terms, due diligence requirements, and transaction timelines. While generally non-binding, it sets the stage for formal negotiations and helps prevent misunderstandings in later stages of the transaction.
