Off-Market Land Purchase Proposal

No, a standard letter of intent or land purchase proposal is designed to be non-binding to allow both parties to negotiate the main terms of the deal first. However, specific clauses, such as confidentiality or exclusivity during the negotiation period, can be made legally binding if explicitly stated. Once both parties agree on the proposal, they will transition to a formal, legally binding Purchase and Sale Agreement.

A standard earnest money deposit for raw land typically ranges from 1% to 5% of the proposed purchase price. Offering a larger deposit, even if it is fully refundable during the due diligence period, signals to the seller that you are a serious buyer with liquid funds. This money should always be held by a neutral third-party escrow or title company rather than paid directly to the owner.

You should request a due diligence period of 30 to 90 days depending on the complexity of the site. This window is crucial for conducting soil percolation tests, verifying utility access, reviewing zoning restrictions, and securing necessary environmental permits. For highly complex parcels, you can write in an option to extend this period for an additional fee.

You can locate the owner's legal name and mailing address by searching county GIS maps and property assessor databases using the parcel number. If the land is owned by an LLC, use state business registry websites to identify the managing members or registered agents. Skip-tracing tools and public records search engines can then help you find their current phone numbers and email addresses.