A Commercial Property Letter of Intent is commonly used in England and Wales as an initial step in commercial property transactions, whether for sale, purchase, or lease. It is typically issued after preliminary discussions but before formal contract negotiations begin. The document outlines key commercial terms, conditions, and timeframes, helping parties align their expectations and providing a foundation for more detailed negotiations. While generally non-binding, it can include binding provisions for certain aspects such as confidentiality and exclusivity. The LOI helps streamline the transaction process by documenting the parties' intentions and basic agreement terms early in the negotiation process.
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1. Property Details: Full description and address of the property in question
2. Proposed Transaction Terms: Key commercial terms including price/rent, payment terms, and timeline
3. Parties' Information: Full details of both parties including registered addresses
4. Non-Binding Statement: Clear statement that the LOI is non-binding except for specific clauses
5. Timeline: Proposed timeline for completion of the transaction
1. Exclusivity Period: Period during which seller/landlord won't negotiate with other parties - used when buyer/tenant requires exclusive negotiation rights
2. Due Diligence Process: Outline of the due diligence requirements and process - used for complex transactions requiring significant due diligence
3. Confidentiality Provisions: Terms regarding confidentiality of negotiations and information - used when sensitive commercial information will be shared
1. Property Plans: Floor plans or site plans of the property
2. Initial Due Diligence Checklist: Preliminary list of required documents and information
3. Proposed Timeline Schedule: Detailed schedule of key dates and milestones
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