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Required Writing: Letter of Intent
A letter of intent clarifies discussions between parties in a land transaction.
A letter of intent clarifies discussions between parties in a land transaction. By providing a nonbinding road map to a successful transaction, a letter of intent is a wise pre-contract tool for any builder/developer.
"In any discussion with a landowner, you want to have a framework for the issues that you will discuss later in the contract," says Leonard Forkas, president of Milestone Communities in Reston, Va. "That's what a letter of intent provides."
A good letter of intent spells out the hurdles to be overcome before a contract is tendered and often provides a time frame for doing the work. Forkas says any number of items can and should be included, but the following are usually present: