How to write a letter of intent to purchase land

Updated February 21, 2017

Writing a letter of intent is a way for parties in a transaction, when buying land or real estate, to have common ground before finalising an agreement. A letter of intent contains all of the vital information a buyer and seller need to complete the purchase or transaction. This type of letter is non-binding, which means there are no penalties for cancelling or backing out of a proposed agreement. You can write a letter of intent by first determining what to include in the letter.

Write an introduction for your letter of intent. You will want to include the name of the proposed buyer, a description of the land to be purchased and the name of the person selling the land.

Include in the first section of the letter the agreed to purchase price for the land.

Include in the second section the time frame required to complete certain items, including the inspection and financing.

Include in the third section the closing date for the transaction.

Include in the fourth section who will be paying the closing costs. This can be the buyer, the seller or both.

Include in the fifth section the amount of broker fees that are to be paid, if a broker was used to help complete the transaction. This section is typically included to make sure the broker is paid.

Provide a summary that includes language indicating the letter of intent is non-binding. This means that a seller or purchaser can walk away from the transaction if one or the other has a change of heart.

Type up the letter on a word processor program and then print it out.


A letter of intent establishes an agreement in principle that can help conclude a transaction to buy or sell land. You might want to include more information in your letter of intent if it is appropriate or is required to be disclosed.


A letter of intent should not be considered a definite agreement to buy or sell a piece of land.

Things You'll Need

  • Paper
  • Pencil
  • Word processor
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About the Author

Cameron Easey has over 15 years customer service experience, with eight of those years in the insurance industry. He has earned various designations from organizations like the Insurance Institute of America and LOMA. Easey earned his Bachelor of Arts degree in political science and history from Western Michigan University.