Document background
The Letter of Intent (LOI) for Real Estate transactions is a crucial preliminary document used in the Dutch property market to establish the initial understanding between parties before entering into a definitive purchase agreement. This document type is particularly important in the Netherlands, where the real estate transaction process typically involves a structured approach with distinct phases. The LOI (Real Estate) serves to outline key commercial terms, exclusivity periods, and due diligence requirements while maintaining flexibility for negotiations. It typically includes binding provisions for confidentiality and exclusivity, reflecting Dutch legal principles of pre-contractual good faith ('redelijkheid en billijkheid'). The document is especially relevant in complex commercial real estate transactions where detailed preliminary arrangements are necessary before proceeding to final documentation.
