Letter of Intent

A Formal but Toothless Proposal

A letter of intent, known in a formal Dutch context as an intentieverklaring, is a document that outlines the preliminary understanding between two parties before a formal contract is finalized. In a commercial real estate transaction, it's a standard step where a prospective tenant formally states their intention to lease a property under specific conditions (rent, duration, etc.), and the landlord agrees to negotiate exclusively based on those terms. It signals serious interest and forms a moral, though not typically legal, framework for the final lease negotiations.

The Reality: A Glorified Motivation Letter

In the ferociously competitive Dutch residential rental market, the formal 'letter of intent' is rarely used. Its role has been supplanted by the more personal motivation letter. However, the function is similar: to formally express your interest and prove you are a serious, well-organized candidate. A prospective tenant might send an email after a viewing that effectively serves as a letter of intent, stating: "I would like to formally offer to rent the property at [address] for the advertised price of €[amount] per month, starting from [date]." From a skeptical perspective, a tenant must understand that this document offers them zero legal protection. It is not a binding offer. A landlord or agent can receive ten such 'letters', acknowledge them all, and then simply choose the candidate they like best. They can even come back and try to negotiate a higher rent. It's a one-way expression of interest that puts all the power in the landlord's hands. It's a necessary step in the application dance, but it provides no security until a formal rental agreement (huurovereenkomst) is issued and signed.