Document background
The Real Estate Purchase Letter of Intent is a crucial preliminary document used in Dutch property transactions to establish the framework for negotiations and eventual purchase. It is typically used when parties have reached initial agreement on key terms but need to formalize their intentions before proceeding with detailed due diligence and final contract negotiations. The document includes essential elements such as property description, proposed purchase price, exclusivity periods, and due diligence requirements. While largely non-binding under Dutch law, certain provisions like confidentiality and exclusivity can be made explicitly binding. The LOI must consider specific Dutch legal requirements, including the Municipality Preferential Rights Act, environmental regulations, and property registration requirements. It serves as a roadmap for the transaction and helps prevent misunderstandings during the negotiation process.
