Expression of Interest Letter Example
An expression of interest letter, or a letter of intent, is usually sent by a potential buyer to the seller of a property, in order to formally express the buyer’s interest in purchasing the property and lay down the terms and conditions for the same. However, the letter needs to be drafted carefully so it does not become legally binding on you.
Begin the letter by formally addressing the seller with his/her complete name. The letter is a formal expression of interest, and should be drafted as such. Start with how you are interested in purchasing the property (give details, like address, location etc) from the seller (add any other details, including whether you want to purchase all furniture, appliances etc as well).
In the next paragraph, you should make the offer and clarify whether you are offering a lump sum payment or installments. If you are willing to put down a deposit, mention that as well, to lend more credibility to your offer. Earnest money is usually deposited it in escrow accounts, and allows the buyer some time to arrange the finances for the deal. This is important if you think you will need time, since the seller cannot just wait on you and skip other buyers because you sent a letter of interest.
Near the end of the letter, propose how and when you want to inspect the property and any other arrangements you would like. It is important that you finish the letter with a clear disclaimer, which states that the letter is not legally binding on either party in any regard.
Example of Expression of Interest Letter
Dear Mr. Lawrence,
I, John Doe, am formally writing this letter to express my interest in purchasing your property located at [123 ABC Street, Ottawa, Ontario, Canada), along with all furnishings and appliances.
My offer for this property is $350,000, which I am willing to pay as soon as we sign the formal sales purchase agreement. I would like to have the property inspected as soon as possible, and would like you to give me a 7-day time frame for it.
If you choose to accept this offer, please send a signed reply and I will deposit $5,000 in an escrow account as earnest money. If you propose any changes to the agreement, I will have to reconsider and reply.
This letter is not to be construed as an offer and cannot be used to place liability on any party.
Please feel free to contact me for further details.
Sincerely,
John Doe
