The buyers have told you that they want to buy your property. The first step in this process is to write a Letter of Intent. A Letter of Intent is an initial agreement between buyer and seller.
> names of the parties involved,
> the date of the contract,
> a specific description of the land involved,
Most of these are straightforward. You should use the buyer’s legal names.
Check with your lawyer as to whether your municipal address will do or if you need to use the legal description. Your legal description can be found on your Municipal Tax Assessment Notice or at Land Titles. Your lawyer should be able to help you with Land Titles if you have difficulties.
If you are asking for a deposit, you should know that deposits are just indicators of good faith and not legally required. If there is a deposit you need to determine who will hold it and if it is refundable. Again, you might ask your lawyer for help with this.
Which leads us to what are called contingencies or conditions or “subject to” clauses. These are usually used by the buyer to protect their deposit if something unforeseen should happen. These conditions may include the buyer having to get a loan, and or an inspection being done, and in the case of a condo, a review of the financials. The conditions state that if the buyer does not get the loan or the inspection is not favourable, they will not buy your house. Discuss this with your lawyer. Not working this out up front could give cause for a major legal battle.
You should also discuss and determine a possession or completion date. This is the day that you provide vacant possession. A specific date and time that you have both agreed to in writing can avoid some major confusion.
A condition is an additional clause that buyers (and sometimes the sellers) use to protect themselves by allowing them a way out of a deal.