Letter of Intent and Mortgage: What You Need to Know

Questioner

My employer hesitates to give me a letter of intent because he believes that this is binding for him. The letter of intent is intended for obtaining a mortgage. As far as I know, a letter of intent is not binding for the employer and the employee cannot derive any rights from it. What exactly is the situation?

Lawyer

A declaration of intent is never binding. After all, it expresses a specific intention. This can change later, due to the passage of time and/or changed circumstances. An employer's declaration is only valid for the lender, but the employer cannot be bound by it in the context of an extension of the employment contract.