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A Letter of Intent to Purchase Residential Property is commonly used in South African real estate transactions as an initial step before entering into a binding sale agreement. This document demonstrates serious interest from a potential buyer and typically includes proposed purchase price, property details, payment terms, due diligence requirements, and timeline for the transaction. While generally non-binding, it helps establish the framework for subsequent negotiations and the formal sale agreement. The document must align with South African property law requirements, particularly the Alienation of Land Act 68 of 1981 and the Consumer Protection Act 68 of 2008. It's particularly useful in complex residential property transactions or when parties need to establish preliminary terms before proceeding with detailed negotiations and due diligence.

1. Date and Addressee Details: Full details of the property seller/owner and their address

2. Introduction and Intent: Clear statement that this is a letter of intent to purchase residential property, including the preliminary and mostly non-binding nature of the document

3. Property Details: Comprehensive description of the property including physical address, erf number, and registration details

4. Proposed Purchase Price: The amount offered for the property and any conditions related to the pricing

5. Payment Terms: Proposed structure of payment, including deposit details and financing arrangements

6. Due Diligence: Outline of the buyer's right to conduct property inspections and documentation review

7. Timeline: Proposed timeline for due diligence, formal offer, and closing of the transaction

8. Closing Conditions: Key conditions that would need to be met before proceeding to a formal sale agreement

9. Confidentiality: Statement regarding the confidential nature of the negotiations and proposed transaction

10. Signature Block: Space for signatures of both parties, including date and witness provisions