Document background
A Residential Real Estate Letter of Intent is commonly used in Australian property transactions as a preliminary step before entering into a formal contract of sale. It represents a professional and structured approach to initiating property negotiations, typically used when a potential buyer wishes to formally express their interest in a property while maintaining flexibility before full commitment. The document outlines key terms such as proposed purchase price, payment structure, and timeline, while clearly stating its non-binding nature (except for specific clauses like confidentiality). While not legally required in Australia, it's particularly valuable in complex transactions or when dealing with high-value properties where detailed negotiation is necessary. The document helps establish clear communication between parties and can expedite the process of moving toward a formal contract of sale.
