November 14th, 2014
A Letter of Intent or Expression of Interest Letter is a non-binding term sheet. The first paragraph of the letter should specifically state that the letter is merely an Expression of Interest or Letter of Intent. This statement should be printed in upper case letters and boldfaced. Following the disclaimer language, a statement of understanding regarding the purpose of the loan is required.
It is important to collect fees for payment of appraisals, toxic waste surveys and feasibility reports. A paragraph indicating the amount required and the disposition of these fees, in the event a loan is approved or declined, must be included.
Paragraph samples for this type of letter are provided, beginning on page 58. Prior to preparation of an intent letter, sufficient information must be made available to identify the borrowing entity, (confirm that the borrowing entity conforms to the vesting) the vesting and the property location. For these purposes, the Property Identification form is included in this chapter. It will provide the underwriter with sufficient data to determine whether to pursue the transaction with a Letter of Intent or an Expression of Interest Letter.
Thanks you for the popst!