Document background
The Letter Of Intent To Purchase (Real Estate) is a crucial preliminary document used in Swiss real estate transactions to establish the framework for property acquisition negotiations. It serves as a roadmap for the transaction, outlining key terms while maintaining flexibility for detailed negotiations. This document is particularly important in the Swiss context due to the complex regulatory environment, including federal and cantonal property laws, Lex Koller restrictions for foreign buyers, and strict formal requirements for real estate transfers. While mostly non-binding, it typically contains certain binding elements such as confidentiality and exclusivity provisions. The LOI is commonly used in both commercial and residential property transactions when parties want to formalize their initial understanding before proceeding with detailed due diligence and final purchase agreements.
