Document background
A Letter of Intent to Purchase Land is commonly used in Swiss real estate transactions as a preliminary step before entering into a binding purchase agreement. This document is particularly important in Switzerland due to the complex regulatory environment surrounding property transactions, including strict federal and cantonal requirements. It serves to memorialize the parties' initial understanding while allowing for due diligence and further negotiations. The document typically precedes the formal public deed required under Swiss law for property transfers and helps address key considerations such as Lex Koller compliance for foreign buyers, cantonal permits, and land use restrictions. While mainly non-binding, it often includes binding provisions regarding confidentiality and exclusivity periods, making it a crucial tool in Swiss property transactions.
