Document background
The Property Purchase Letter of Intent is a crucial initial step in Philippine real estate transactions, serving as a formal expression of interest from a prospective buyer to a property owner. While not legally binding as a whole, it sets the stage for serious negotiations and demonstrates the buyer's commitment to the transaction. This document is typically used before entering into a formal contract of sale, allowing parties to outline key terms and conditions while maintaining flexibility for further negotiations. The LOI must consider Philippine property laws, local regulations, and standard real estate practices. It's particularly important in commercial transactions or complex property purchases where parties need to establish clear communication and understanding before proceeding with detailed due diligence and final documentation.
