A Letter of Intent to Sell Land is a crucial preliminary document used in Irish property transactions to establish the framework for a potential land sale before proceeding to a formal contract. It is typically employed when parties have reached initial agreement on key terms but need to document their intentions while conducting due diligence or securing financing. The document outlines essential elements such as property identification, proposed purchase price, payment terms, and timeline, while usually maintaining a non-binding nature except for specific provisions like confidentiality or exclusivity. Under Irish law, while the LOI itself isn't required to comply with the formal requirements of the Statute of Frauds, it serves as an important stepping stone toward the final binding contract and helps prevent misunderstandings between parties. This document is particularly valuable in complex land transactions where detailed negotiations and due diligence are required before proceeding to formal agreements.
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1. Date and Addresses: Full names and addresses of both the potential seller and buyer
2. Property Identification: Clear and unambiguous description of the land being considered for sale, including its location, boundaries, and folio number
3. Purchase Price: Proposed purchase price or price range for the land
4. Payment Terms: Outline of proposed payment structure, including any deposits
5. Transaction Timeline: Proposed timeline for completing the transaction, including due diligence period
6. Due Diligence: Overview of the due diligence process and what will be required
7. Conditions: Any key conditions that must be met before proceeding to a formal contract
8. Non-Binding Nature: Clear statement that the letter is non-binding except for any specific terms intended to be binding
9. Exclusivity Period: If applicable, period during which the seller won't negotiate with other parties
10. Next Steps: Clear outline of what needs to happen next to progress the transaction
11. Signature Blocks: Space for both parties to sign and date the letter
1. Planning Permission Status: Include when there are relevant planning permissions or restrictions that significantly affect the property's value or use
2. Environmental Matters: Include when there are known environmental issues or requirements that need to be addressed
3. Existing Tenancies: Include when there are current tenants or leases affecting the property
4. Confidentiality Provisions: Include when parties want to ensure discussions and property details remain confidential
5. Costs Allocation: Include when parties want to specify how transaction costs will be divided
6. Break Clause: Include when parties want to specify conditions under which either party can withdraw from negotiations
1. Property Plan: Map or survey showing the exact boundaries and location of the land
2. Property Details: Detailed description of the property including size, boundaries, and any registered easements or rights of way
3. Planning Documents: Copies of relevant planning permissions or certificates
4. Initial Due Diligence Checklist: List of documents and information that will be required during the due diligence process
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