Letter Of Intent Real Estate: Samples & Templates
The clients prefer the discreet marketing of the properties and do not want to publish the property’s data on the usual real estate portals. We can’t forget the importance of the tenants, they also do not need to know about the marketing campaign unnecessarily, as this can cause unnecessary damage.
By signing the statement of interests (Letter Of Intent), you confirm that you will treat the entrusted information confidentially.
With the forwarding of your statement of interests, the real estate seller can see who has received the address or other documents for his property for sale.
A statement of interests also serves to convey to the seller a serious interest the purchaser in the purchase, which as long as no notarial contract conclusion comes into full non-binding. With the receipt of your signed statement of interests by the real estate broker, the latter can look forward to the protection of the broker’s commission in the event of success, which also motivates the broker to make this business.
The broker’s commission in the case of a share deal from the financing sum (or all debt to be taken over) + residual purchase sum we informed the good order the customers.
Example from practice:
Immobilieninvestor wants to buy from the seller a shopping center for € 10 million. At the time of purchase, the owner established an object company “Einkaufszentrum Mustermann GmbH” and the owner signals that he would like to acquire the shares. The owner reports that the current loans exceed € 7.4 million with the Volksbank with an interest rate of 1.9% p.a. be. This is acceptable for the real estate trader and it is clear: “He wants to buy!”
The notary draws up the new shareholder agreement and a purchase price of € 2.6 million + the loan i.H.v. € 7.4 million was recorded. Now, a transaction of € 2.6 million has been communicated logically, but it is quite clear that the broker in the total volume is a mediation i.H.v. € 10 million. The brokerage commission is calculated as follows:
Purchase price: 100 x 5,95% = sum
The signed statement of interests with 5.95% per cent is intended to ensure that the real estate investor has an interest in a negotiation of the broker’s commission for the emergency. A willingness to negotiate is also in the interest of any broker, provided it is not necessarily the mediation of a 400.000.- € property. It is self-evident that in the order of € 10 million, the broker’s commission i.d.R. Depending on the attractiveness between 2-4%.
Reason for the initial offer with 5.95% or 7.14%
In the case of the fact that the real estate investor tries to bypass the broker or no clause is included in the notarial purchase contract in the event of the non-payment of the commission this court to sue. This costs nerves, time & money for the broker. In contrast, the agreed 0.5 – 1.5% criminal charge to the compensation + interest should compensate the expenses.
Express waiver of your right of revocation
The real estate investor must waive the right of revocation if the address + documents for the purchase inspection do not want to accept an unnecessary time loss of 14 days. You can cross this paragraph if you want to wait for the waiting period of 14 days.