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Letter Of Intent To Sell Property Template for New Zealand

A Letter of Intent to Sell Property is a preliminary written document used in New Zealand property transactions that formally communicates a property owner's intention to sell a specific property to a potential buyer. While not legally binding in its entirety, this document operates under New Zealand property law and serves as a framework for the subsequent formal Sale and Purchase Agreement. It typically includes key details such as the property description, proposed price, basic terms of sale, and any specific conditions that would need to be met. The document helps establish clear communication between parties and can be used for both residential and commercial property transactions in New Zealand.

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What is a Letter Of Intent To Sell Property?

The Letter of Intent to Sell Property is a crucial preliminary document in New Zealand's property transaction process, typically used before entering into a formal Sale and Purchase Agreement. This document serves as a structured way to initiate property sales negotiations and demonstrate serious intent to proceed with a transaction. While primarily non-binding, it helps establish clear expectations and basic terms between parties. The document is particularly useful in complex property transactions or when parties need to document their preliminary understanding before proceeding with due diligence and formal agreements. Under New Zealand law, this document should be carefully drafted to avoid unintended binding obligations while still maintaining its effectiveness as a serious expression of intent to sell.

What sections should be included in a Letter Of Intent To Sell Property?

1. Sender's Details: Full name and contact details of the property owner/seller

2. Date: Current date of the letter

3. Recipient's Details: Full name and contact details of the potential buyer

4. Property Details: Complete legal description and address of the property being offered for sale

5. Intent Statement: Clear statement of intention to sell the specified property

6. Proposed Price: The asking price or price range for the property

7. Key Terms: Essential terms of the proposed sale including payment terms and expected timeline

8. Non-Binding Statement: Statement clarifying that this is not a binding contract but an expression of intent

9. Expiry Date: Date until which the letter of intent remains valid

10. Signature Block: Space for seller's signature and date

What sections are optional to include in a Letter Of Intent To Sell Property?

1. Conditions Precedent: Any conditions that must be met before proceeding with the formal sale, used when specific prerequisites exist

2. Property Access Terms: Terms for property inspection and due diligence, included when immediate access arrangements need to be specified

3. Exclusivity Period: Period during which the seller won't negotiate with other parties, included when exclusivity is desired

4. Confidentiality Clause: Terms regarding confidentiality of negotiations, included for sensitive or high-value transactions

5. Real Estate Agent Details: Agent's information and role, included when the sale is being handled through an agent

What schedules should be included in a Letter Of Intent To Sell Property?

1. Property Description Schedule: Detailed description of the property including lot number, certificate of title, and boundaries

2. Preliminary Terms Sheet: Basic terms and conditions that would form the basis of the future sale agreement

3. Property Photographs: Recent photographs of the property for reference

4. Current Title Search: Recent title search results showing current ownership and any encumbrances

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

New Zealand

Publisher

Genie AI

Cost

Free to use

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