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The Property Purchase Letter of Intent is a crucial preliminary document in New Zealand property transactions, typically used when a potential buyer wishes to formally express their interest in purchasing a property while maintaining negotiation flexibility. This document serves as a stepping stone between initial interest and a binding sale and purchase agreement. It outlines key transaction terms including proposed purchase price, due diligence requirements, and timeline, while clearly stating its generally non-binding nature. The letter helps parties establish clear communication and demonstrates serious intent, particularly useful in commercial property transactions or complex residential purchases. While governed by New Zealand law, particularly the Property Law Act 2007 and Contract and Commercial Law Act 2017, the document primarily serves as a commercial tool rather than a legal requirement.

1. Sender and Recipient Details: Full legal names and addresses of both the potential buyer (sender) and the property owner (recipient)

2. Date: The date of the letter

3. Property Identification: Precise details of the subject property including address, legal description, and title references

4. Purchase Price: Proposed purchase price and any initial thoughts on payment structure

5. Key Terms: Essential terms of the proposed transaction including intended settlement date and any critical conditions

6. Due Diligence: Proposed due diligence period and requirements

7. Exclusivity Period: Proposed period during which the seller agrees not to negotiate with other parties

8. Non-Binding Nature: Clear statement that the letter is non-binding except for specific provisions like confidentiality

9. Next Steps: Proposed timeline and process for moving forward with the transaction

10. Signature Block: Space for signatures of both parties to acknowledge the letter's receipt and general terms