Document background
The Letter of Intent (Real Estate) is a crucial preliminary document used in Danish property transactions to establish the initial understanding between parties before entering into a binding purchase agreement. This document type is particularly relevant when parties have reached a preliminary agreement on key terms but need to conduct due diligence or negotiate detailed terms before finalizing the transaction. While governed by Danish law, particularly the Danish Formation of Contracts Act (Aftaleloven), the LOI typically maintains a non-binding nature except for specific provisions like confidentiality and exclusivity. It serves as a roadmap for the transaction, documenting the parties' intentions and key commercial terms while providing a framework for further negotiations. The document is especially valuable in complex real estate transactions where significant due diligence is required or where multiple stakeholders are involved.
