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The Letter Of Interest (Real Estate) is a crucial initial document in Hong Kong's property transaction process, typically used when a potential buyer or tenant wishes to formally express interest in a property while maintaining flexibility for negotiation. This document is particularly important in Hong Kong's dynamic real estate market, where property transactions often involve substantial investments and require careful preliminary steps. The LOI serves multiple purposes: it demonstrates serious intent, outlines basic proposed terms, and initiates formal discussions while preserving the non-binding nature of preliminary negotiations. Used extensively in commercial property transactions, it helps parties establish initial understanding before proceeding to more detailed due diligence and formal agreements. The document needs to comply with Hong Kong's common law system and local property practices, often incorporating specific references to local property regulations and transaction customs.

1. Letter Header and Date: Formal business letter header including sender's details, date, and recipient's details

2. Property Identification: Clear identification of the subject property including address and any relevant lot numbers

3. Expression of Interest: Clear statement of interest in purchasing/leasing the property

4. Proposed Terms: Basic outline of key commercial terms including proposed price/rental and general payment terms

5. Timeline: Proposed timeline for due diligence and transaction completion

6. Contact Details: Contact information for further discussions and negotiations

7. Closing and Signature: Standard letter closing, signature block, and title of signatory